How much do I need to spend on my initial inventory?
Buying your startup inventory can be very tricky initially.
We’ve found the best way to start the process is by doing your market research and buy small stock based on what your local activation stores have been selling.
It can literally be as easy as walking into the local Verizon store (or other activation company) and asking the salesperson... “What’s the 2 or 3 best selling devices you guys have been selling for the last few months?” You can pretty much bet on those customers needing repairs in the near future.
At the time this article was written, it’s normally a good idea to keep the latest (and previous) generation of Apple and Samsung parts in stock. Remember, you don’t need to have everything in stock. In fact, we think it’s great to let your market tell you what you should be carrying.
Most new repair business owners worry they are going to lose customers by not carrying everything in stock. While that might be a small cause of concern, when you use the strategies you’ll learn in the LaunchPad business courses you can minimize this.
The #1 thing to keep in mind is that Cash Is King! Keeping your cash in your business instead of trading it for unsold inventory is a good call. You can’t eat touchscreens and you can’t trade charging ports for blankets to keep you warm at night. Cash is king!
The business model you choose will determine how much startup inventory you should have. Of course, your budget is the biggest factor of how much to spend as well. You can start with as little as $500 for your initial inventory and continue to grow from there.