# Inventory



## jdranch (Jan 31, 2010)

Just curious how much soap everyone keeps in inventory. I would think inventory is tied to anticipated sales. Is there a formula? How does scheduling a show impact your inventory amount?


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## Kalne (Oct 25, 2007)

I look at three factors. First, during the market season I have an average amount that I sell week to week. This goes away mid fall and is replaced by craft shows through the end of the year. Second, I come up with a weekly average for on-line & private sales taking into account the time of year. So, I take these two numbers to anticipate sales over the next 6 weeks. And these numbers are broken down by past sales percentages to give me numbers of bars to have for each scent. With me so far? 

To that I add what my stores might order (knowing what they tend to order and that they rarely order more often than every 6 weeks). That gives me an idea of what I'll be selling and the least amount that I should have in inventory. I have it all worked out on a spreadsheet so I can easily change a factor and everything is recalculated automatically. It also tells me how much would be left over after 6 weeks and those scents with the lowest number (or with a negative number) are what go at the top of my list to make. I'm always looking 6 weeks out. Every sale I make gets entered and all my numbers are updated automatically. I make soaps as their inventory gets close to or falls below what I'm anticipating selling over the next 6 weeks.

I used to work for a big corp. in their forecasting dept. I was the computer tech who made the programs and spreadsheets to perform the forecasting as defined by the finance people. Back then I thought it was rather useless and now here I am using some of what I learned. LOL It's still a guessing game. But at least I'm making *educated* guesses. LOL


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## NubianSoaps.com (Oct 26, 2007)

I don't think you can.....I try to do more than I did the year before for a buffer, the nice thing is soap doesn't go bad, as long as it is boxed away everything is fine. I have not guessed right once...I have simply ran out of soap each Christmas which then leaves me soaping after Christmas for restocking stores. My stores are on a really good restocking schedule so I know pretty much who orders what, and also don't put up holiday sales until the soap is curing and or wrapped and ready.....but holiday sales, especially Christmas is going to have not only customers ordering but stores wanting an extra rushed order I didn't plan on...On 4 of my scents I am already dipping into bars put away from January (on scents never before associated with Christmas purchase frenzy....a good thing...a bad thing as I will be soaping daily now, taking only tommorrow off until the 17th.

So next year I will start earlier in the summer, stocking up for the holidays.


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## hsmomof4 (Oct 31, 2008)

I hear you on that, Vicki! Right now, I am selling one particular variety of soap as fast as I can make it. Thankfully, I was able to get more of that FO in a hurry and should still be able to make a bunch right away that will still be ready for Christmas gift-giving. Barely.


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## adillenal (Feb 6, 2009)

In the past I have had too much extra soap on the curing rack but this year I am totally out (on the curing rack)except for the marathon soapmaking this week to fill the racks again. everything I have is packaged and ready for my last 4 shows. The past two weeks really surprised me as far as soap sales go. So I can't guestimate too good either. I don't do wholesale so I don't have to worry about that angle. BUT I have a show in January and a show in February that do surprisingly well so I have to have soap for then too. Looks like I might be making soap during my Christmas Holidays this year. 
Trial and error plus keeping god records and adding more to what you did last year is as good as I can do.


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## jdranch (Jan 31, 2010)

Thanks for the replies.  At what point do you find your scents starting to fade?


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## Guest (Nov 26, 2010)

Some never fade, some do fast... just depends on what it is and where you get it...
Barb


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## jdranch (Jan 31, 2010)

thanks for the reply Barbara  I'm starting a new thread


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## jimandpj (Mar 11, 2008)

We keep a huge inventory b/c we never want to turn away a customer, and because I sleep better when I'm not worried about running out of soap. We aim for a 6 month supply of soap in inventory. We use spreadsheets too and calculate the percentage of each scent that has sold in the past six months (a rolling total) and use that to determine what to soap next. 

We practice a first in first out inventory system, so I don't worry about scents fading as I've found that the scents we carry are good for at least a year.

PJ


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