Thread: store owners: maintaining inventory and tracking

To store owners or anyone who maintains any type of inventory in their dance studio, etc..

Gosh I'm not even quite sure what I'm asking but here goes..

How do you know how much inventory to maintain so that you have a good selection of items, yet you are selling enough items to not only reinvest in more product, pay the rent on the studio/expenses etc, and still profit enough to live on?

I have an opportunity to open a kiosk style store in one of the high end hotels here in Waikiki (not offering bellydance items but more resort style clothing that I love to do).

I can make an estimate of expenses such as kiosk rent, paying an employee, etc. And I understand you won't know how well your product will do until you jump in and try it. I understand that I'd have to sell x amount to make the rent and pay the expenses ..but is there an equation you use to put a certain % back in to product purchase and a certain % to keep?

Kiosk rental is not cheap here but I can rent one for short term to try it out. The upfront cost of renting one and paying an employee is not an issue, I'm just needing help determining how much inventory to carry and how to divide up expenses and maintenance.

A friend of mine rents three kiosks and pays 30k a month for all three. He sells those energy bracelets. He must be selling a LOT of bracelets to pay the kiosk space. I've asked him a few questions and have tried to talk to other kiosk owners but they seem to not be too wiling to teach and share info even though we are not competitors...

thoughts?

am wanting to also start offering wholesale on silk veils again as well ..but I have that formula down pretty well. Am working with a new idea about having specialized distributors ..true wholesale prices for those who re-order consistently and then a price tier for those who order less frequently