14 Inventory Reduction Strategies for Jewelry Businesses

Are you a victim of bright shiny object syndrome?

Do you Buy loads of materials that inspire you without really thinking about how you are going to create, sell, and market the finished good? Holding on to inventory without a solid inventory reduction strategy can be detrimental to your jewelry business.

If you are anything like I WAS you probably got sucked into bright shiny object syndrome and possibly years later have loads of things you don’t know what to do with. The same holds true for made goods. Maybe your sales projection was off and you are stuck with a bunch of extra castings or finished products.

Inventory reduction = cash flow freedom! If you are struggling with your cash flow check out the inventory you have on hand because that may very well be the culprit.

Today, I wanted to bring you some strategies that I used to reduce my inventory by $100K dollars in just a few months. (Even if your inventory numbers are even close to this, please read on. It’s all relative to the size of your business).

Here are 14 of my favorite inventory reduction strategies for jewelry business:

1. Have a sample sale

2. Host a flash sale on your website for a limited period of time

3. Have a flash sale with an established flash sale site (Gilt.com or Hautelook.com, etc.)

3. Produce limited edition pieces for special prices

4. Host trunk shows at your friends homes or offices

5. Send pick boxes to your wholesale accounts for immediate delivery

6. Create prepackaged off-price assortments for wholesale clients

7. Participate in a local craft or art fair to destash old inventory

8. Develop special off-price collections to sell at off price stores

9. Find a local liquidator and sell old designs

10. Offer a gift with purchase on your website

11. Sell raw materials

12. Refine or trade in raw materials

13. Return unused materials for credit

14. Donate old raw materials to a non-profit or school.

The above are just a few of my suggestions! When you have extra inventory that is not moving, the best thing you can do is to get rid of it. Get creative, my list is just the beginning of ways to sell off old inventory.

While Robin and I are not huge believers in discounting your work, if it’s not selling, move it out.

Remember, if you donate, gift or mark anything below cost, make sure that you are keeping track of the expense so you can write it off on your taxes (better yet keep track in your accounting system).

In the comments below, tell us the following:

1. Which of the above strategies will you implement right away?

2. Tell us any other destash strategies you have for extra inventory!

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11 Comments

  1. justine on May 20, 2014 at 10:50 am

    well… what Im doing right now is making irresistible ‘packages’ that I sell to my artist-friends.

    For example:

    everything I haven’t used in a year is being sold. There is no possibility of buying things separately. (this saves me tons of time) I sold my collection of semi-precious beads in a package. one price – one package. I took a beautiful picture, I make a detailed list of what is in the package and I send it to my friends.
    Most packages have sold within hours.

  2. Helen on May 20, 2014 at 11:02 am

    Hi there, what a great article!

    Yes, definitely 10 and 11 are options for me.

    Shiny, shiny things!

    Thanks :o)

    Helen

  3. Hannah Ali on May 20, 2014 at 11:28 am

    All very good tips, thank you for sharing as I have been thinking about this and started to actively reduce the inventory.

    I have implemented tip #11 (sell raw materials).

    2 other methods I have used are 1. Send samples to Sample Boxes and 2. enter prizes in Fashion blog giveaways. These two methods were mostly for advertising which have been somewhat successful.

    Hannah

  4. Helen on May 20, 2014 at 12:35 pm

    10 and 11 are best for me. I’m afraid I’m such a magpie x

  5. Kathy on May 20, 2014 at 1:12 pm

    Great list Tracy, I am definitely passing this on! #10 has always been a favorite of mine. Also, I would add giveaways/contests to the list. I agree with Hannah. I have always shed old inventory this way to build brand awareness. I chalk it up as a marketing expense!

  6. Andy on May 29, 2014 at 1:38 am

    It’s a great article, thanks for the good tips.
    http://shinytown-online.com/

  7. Sarah on June 20, 2014 at 4:26 am

    I have a ‘VIP member’ list that goes into a competition for one member to win a piece of jewellery per month. This helps me to reduce samples etc, and rewards my most loyal customers.

  8. […] now is the perfect time to think outside the box to generate cash flow. It’s a fantastic time to get rid of excess inventory, and here are a few ways to do […]

  9. Zee on January 7, 2016 at 6:28 pm

    Excellent post! Thanks for the fantastic ideas.

  10. Maria on June 22, 2017 at 1:19 am

    Great article and comments. I loved the idea of making a VIP Club and the one to bundle by categories. I have bundle of upscale jewelry that are not selling for whatever reason. I will try one of those ideas. I have posted on my website the Birthday Club and Online Jewlry Party were are huge exclusive discounts and free jewelry.
    Thanks

    • Tracy Matthews on July 17, 2017 at 4:34 pm

      Fantastic ideas, Maria! xo, Tracy

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