Do you buy just enough inventory to stock your shelves, or do you order extra in case you run out?

I order extra in case we run out. It's not good business sense, but I'm fortunate that when we moved in we had a back room that is larger than usual, so I am able to have back stock. I don't understand how shopowners can get the discounts that manufacturers offer with a quantity if they don't have a large stockroom. For example, Midwest has an offer that if you spend $10,000 you get free freight, Christmas dating and 5 percent off. I was looking at my freight with Midwest and it was $717! How they can stay competitive if they don't take advantage of those offers?

Moving product from storage to the sales floor is a bone of contention because I'm trying to get employees to restock. We've been working on that for a long time now. I try to do it daily, because you surely can't sell product when it's in the back room.

Buying and reordering habits depend on so many variables: time of year, cost per item, minimums, demographics, events. No one product is ordered the same as another.

I buy enough of new seasonal products to make an impression and see the reaction before I order more. I buy more of something when I have a gut feeling that it's a good price or a quick sell. It took me nearly two years to get in the swing of reordering consumables (soap, candles, body products); now we try to keep one extra box of those items in stock.

We have quite a few display pieces that can store a month's supply underneath and a fairly good size back room — but it's never big enough. We try to restock as needed, but at Christmas time we schedule staff to stay 30 minutes after closing to prepare the store for the next day. All of this was learned by trial and error — and we're still learning what works and what doesn't.

One tip I've found helpful: Keep accurate records of peak selling periods. It's impossible to remember details later, so take notes and pictures just before and after a holiday. On key product lines, call sales reps and vendors about their inventories, allow three to four months lead time. Don't forget that suppliers are in the same position, not wanting to lose sales, while at the same time conserving their money. For important lines, write orders with multiple ship dates. In other words, order extra if you're not sure. You can always cancel or change an order if needed. And ask for a confirmation. This is your hedge against not having enough stock with key lines. Use a calendar to log in the dates as a reminder to review the order. Make every attempt to increase stock on the sales floor. Keep your storage area orderly, no matter what size. Always remember, you can't sell it if you don't have it!