When it comes to promotional branded merchandise, some businesses overlook the advantages of holding stock. Yet, stocking your branded items can be a strategic decision with benefits.
Pros of stock holding
- Costs
- Speed
- Creativity
Cons
- Obsolescence
- Shelf life
Examining each in turn:
Costs
The primary consideration is cost. There is a substantial cost benefit to holding stock, largely due to the branded nature of these products. Branding involves setup costs—whether for print, embossing, engraving or embroidery. These are fixed costs, typically around 50 to 100 pounds. Importantly, these costs remain unchanged regardless of whether you order one item, ten, or a hundred. Therefore, ordering in bulk can significantly reduce the unit cost, a reduction which exceeds the costs of storage and other associated expenses.
Speed of Delivery
Another significant advantage is speed. Once your branded merchandise is in stock, companies like PDI can to pick, pack, and ship orders within 48 hours. This means faster delivery times for your business, allowing for quick responses to customer demands or internal needs.
Creativity Versus Standardization
While it's possible to buy products which are branded within two days, this often limits the scope to the standard design of products like bottles, notebooks, pens, and tote bags. These items are popular, but if your brand requires creative flair or customisation, quick turnarounds may not accommodate these needs as effectively as planned stock can.
Potential Downsides
That said, holding stock comes with its own set of challenges—chiefly, the risk of obsolescence. This could occur if the nature of the product involves a shelf life, such as food items, or if branding elements, like logos, undergo a redesign that renders existing stock unusable. Overestimation in stock levels can lead to waste, requiring recycling or disposal efforts.
Stock Management
It's essential to consider the systems used to monitor and manage stock, particularly if using an outsourcing company. While some businesses manage their stock internally, exploring available systems can streamline operations and mitigate potential risks.
In conclusion, holding stock of your promotional branded merchandise can be a game-changer in terms of cost savings, delivery speed, and creative opportunities. However, it requires careful management and planning to ensure it aligns with your business goals.
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