The number of accessories a Consultant needs to purchase can depend on many factors. Of course, it is not sensible to go live on social media and try to sell the same five necklaces day after day. However, at the other end of the spectrum, it is not wise to purchase more accessories than you can reasonably use or sell in a month.
How much inventory is “enough” differs from Consultant to Consultant. Some join to buy for themselves, while others are interested in selling accessories. The Paparazzi Policies and Procedures state that a Consultant should not purchase more accessories than they can reasonably use or sell in thirty (30) days. To help you better gauge that quantity for yourself, we have provided some factors to consider:
- Do you have money available to build your inventory? Paparazzi is a debt-free company and does not recommend that you go into debt to establish your business. Some successful Consultants suggest that as you sell your Starter Kit pieces, you reinvest your original Starter Kit purchase price into further inventory and build from there.
- What is your current rate of sales? How many accessories are you selling during a party? Over the course of a week? A month? Do not purchase excessively beyond the rate at which you are currently selling.
- How many customers do you currently have, and how do you plan to increase your customer base? Increase your inventory as your customer base increases, and not the other way around. As you acquire new customers, find out what types of accessories they like so your inventory is geared toward your customers’ tastes. Consider whether your Paparazzi sales page or platform is easy to find. Privatizing your sales page may seem like a good idea but it will make your site difficult for potential customers to find and join. If you choose to go Live on social media, remember to be and look professional, have the area tidy, and your accessories organized.
- How consistent are you in your sales efforts? Are you going Live or doing in-person events regularly? If you have a schedule, customers are more likely to know when to join your lives or when to check your sales site to see when you have accessories available. You can then base purchases of inventory on your actual sales.
- Will you be expanding your sales options? You could introduce basket parties or in-home parties. Some Consultants carry some of their inventory with them so they can make sales as they go about their day. These ideas are particularly helpful in introducing others to Paparazzi Accessories and your business. You could get a consignment spot or you could participate in vendor or other special events. Those may necessitate more up-front inventory than selling online via live parties with friends and family.
- How will you monitor and track your inventory? Many Consultants find a shopping platform such as Paparazzi Premiere to help track inventory. Paparazzi Premiere seamlessly integrates with your Paparazzi Back Office, making it easy to upload all the stock photographs for your accessories. It helps to know what items you have in your inventory so you can make them available to customers. Accessories that aren’t inventoried will be more difficult to sell. Knowing your inventory helps in making decisions about purchasing more or fewer accessories.
- Are you promoting your replicated website? Your replicated website allows customers to see all of Paparazzi’s inventory, making it easier for a customer to search for a specific item. The replicated website allows your customers to purchase through you directly from Paparazzi and Paparazzi does the shipping! This can also help you get a feel for the styles and designs your customers enjoy. Your customers have access to all the accessories Paparazzi has available so you do not need to have such a large inventory as you start.
Following are the Paparazzi Policies and Procedures sections specifically dealing with inventory loading:
5.19 Inventory Loading
Consultants must never purchase more products than they can reasonably use or sell to Retail Customers in a month, and therefore must not influence other Consultants to purchase more product than they can reasonably sell within a month. Not only will excess product not be returnable, it may be seen as Bonus Buying and a violation of Section 5.20.
5.20 Bonus Buying
Bonus Buying is strictly and absolutely prohibited. “Bonus Buying” involves any method of directly or indirectly maintaining or increasing a Consultant’s rank, volume, or commission level by purchasing products for which the Consultant does not have a bona fide need for personal use or bona fide reason or intent to resell within the next 30 days from the date of the order; or, placing orders personally with the intention of hitting or maintaining a rank, volume, or commission level. This also includes using multiple positions within the organization to achieve the goal of “buying” the bonus or achievement. If it is determined by the Compliance Department that a Consultant is Bonus Buying, that Consultant may be subject to suspension, termination, loss of commissions, loss of rank, or temporary or permanent suspension of the return policy. Product determined to be used or purchased in an abusive manner (i.e. Bonus Buying) will not be allowed to be returned.