Inventory

[Mojo]

My questions is if any of you keep track of your inventory on a regular basis.

Do you go through your stock and check on a regular basis so as to keep from running out of things
such as fabric, snaps, notions, thread, etc ?

I am typically very good and before calling MiamiMike I take a gander at my thread stock and such to make sure there is nothing else I need. But Monday I had a major brain fart.

I had several yards of fabric stocked and thought I was all set. I spent yesterday twiddling my thumbs because I do not have the stock in hand. I placed an order for a full roll of one type fabric on Monday with Mike. Today I am ordering two more full rolls of fabric because of the orders I have on the books. We are not talking about 5 yard cuts here but each full roll is 65 to 67 yards.

I am getting hammered with orders since being back from vacation and am having a helluva time getting back into the swing of things. I am so far behind now that it isn't funny. I will never leave on vacation with my stock inventory being low like it was. I hate ordering full rolls of fabric like this since each one is close to $ 800 per roll but the wife informed me yesterday that she wanted me to start stocking this material in bulk quantities to save time, save money through roll pricing and to save money on delivery charges. I just hate sitting on fabric for 3 months. But she has a point. I will save close to $ 200 on these 3 rolls alone by ordering in roll quantities.

My schedule is so bad right now I cannot afford a day to wait for material. To make it worse I have one order that needs to be done this week and Mike had to order the fabric direct out of Sattlers warehouse which always takes 3 days to get shipped.

Thread is another biggie. I pay $ 200 per 1 lb spool for Solarfix and need to keep two spools on my twin needle machine as well as a back up spool for bobbins. Damned if I nearly ran out of that. I can only say that if Miami has it in stock in Jacksonville I get it the next morning.

I need to get on a schedule or something of going through my inventory so I don't get caught like this. Do any of you have set schedules for tracking your inventory ? How do you keep track of your stock ?

Chris

[sofadoc]

Your wife sounds pretty smart. I guess that marrying you was just a momentary lapse in judgment.  ;D

In my line of work, there isn't any specific color/pattern of cloth/vinyl that I would need to keep that much of in stock. I try to keep a 25 yd. roll of basic color vinyls, such as red, white, and black. But if I run out of one, it ain't the end of the world. I can wait until the next delivery truck comes by.

This business has been passed down from Grandmother to Mother to me. They used to order strictly on an "as needed" basis. If a job came in that called for 5 yds. of black vinyl, they would go to the phone and order 5 yds. If a 2 yd. job came in the next day......back to the phone.

They DID buy a lot of closeout specials off the supply truck. 10-20 yd rolls of fabric/vinyl at next-to nothing prices. Then they would sell it to the customer at an almost-next-to nothing price.

When I took over the business, the first thing I did was order supplies in bulk in order to reduce shipping costs. The first year alone, I spent nearly $2,000 less in shipping compared to the previous year.

My competitor and me had a little spat recently. We've been friends for over 30 years. He knows that I stock plenty of everything, so he's began using me as his personal supply house. I've started charging him  a conservative estimate of what the shipping charges would've been.

Is it fair that I deplete MY stock by selling to him at cost, and then incur shipping fees for re-stocking?
He popped off "Well hell! I might as well pick up the phone, and order it myself!"...............YUP!

To answer your original question, I don't keep any written inventory. Just visual.

[Mike]

I very casual chris I look at what on the shelf   ya I got enough. I used to make quanity orders on things like zippers and snaps webbing   but I used to use them all the time now I see an enclosure needeing zippers slot less. maybe 6 projects in the last 12 months.  therer are other item I aught to order in bulk but I generaly order what I need. 4 weeks ago I did goof up I thought I had turnbutton   grometts for an ewnclosure install on that 60 hatt. I went to load up that morning to ijnstall and saw no grometts to had to order some and go home

[Grebo]

I have thought about some kind of stock control, but not figured out how to do it yet .
:-[
Like Mike & unlike you, my work is hugely varied, from canvas tops, biminis, sprayhoods, loose cushions, upholstered seating, interior / exterior. Motorbike seats, outdoor furniture covers, right down to embroidering a T shirt.  :
The only full rolls I ever order are crystal, 2" fluted white vinyl, pattern plastic & occasionally a roll of canvas.

So It's order by job.

Suzi

[gene]

2 issues: mojo's question and taxes.

1. I do not keep big inventories of supplies. When I notice that I am starting to get low on something, such as white zippers or cambric or cotton, etc.,  I go over all my stuff and order what ever else I seem to be getting low on. This system works well for me and it takes very little time and I never completely run out of anything.

2. I asked a CPA when I first started my business if I needed to pay inventory tax. She said the small amount of materials that I have on hand do not constitute 'inventory' for tax purposes.

Anyone pay inventory taxes?

gene

[Mojo]

Gene:

I have never paid inventory taxes. Ever. It seems every year my inventory ends up sunk on a boat along with all my guns. :)

Chris

[sofadoc]

Technically, I pay property tax on my inventory. But the ceiling is pretty high, so it really doesn't matter whether I report $500 worth of inventory, or $5000.

[MinUph]

Not saying I ever kept track of inventory, I basically do and did when Gene does. But for you that want to. It really isn't that hard. Quickbooks has inventory control. Put in 40 yds of a fabric or whatever else you sell and place what's used on an invoice and inventory is updated. Kills two birds with one bill...
  When I had the business up north my inventory for tax purposes was $500.00 for 30 years. If I ever had changed that number I would have to explain to the IRS so it was simple. No tax on it. In Florida we do have the "property tax" on business product. But I' not sure if our business would make the cut for that either.

[Mojo]

Thanks everyone.

I just got behind in the brain department, got flooded with orders and had no fabric to do the work. I could have kicked my own ass for that one. My problem is that I am so overloaded with work right now I cannot afford a day of doing nothing while waiting on stock.

Thankfully Miami stocks alot of what I need in Jacksonville and typically it is about a 24 hour turn and burn on whatever I order. My fabric all showed up early this morning and I was cranking out toppers.
I just didn't need the brain fart when I am so busy.

Paul, we use quickbooks so I will have to talk to the wife about that. I started tagging my rolls though which has helped. if I cut 10 yards from the roll I tag what is left. That way when I get to 17 yards I can order more.

It has been an expensive week. Over $ 2 K worth of fabric ordered. Ouch.......:(

Chris
Chris

[Mike]

It has been an expensive week. Over $ 2 K worth of fabric ordered. Ouch.......:(

Chris
Chris

that onje reason I order what I need as I need it the customer deposite pays the bill, when you had the day off you shoda came down fishin I coulda used a day off it was so hot.  as far as taking  inventory I used to work at a office furniture vompany and we had to count every staples screws nad board scraps we gad along with tools,

[Allan]

Chris

You only order it if you are using it and if you are using it you are being paid for it

I like the people who complain about the amount of tax they pay
I tell them that you only pay it if you are making the money

Cheers

Allan

[scottymc]

I 'd like to keep track of my inventory if only I could find it.

[Mike]

I 'd like to keep track of my inventory if only I could find it.

I have that problem with tools usualy my tape measure.