As a business owner, it’s important to have a clear understanding of your wholesale buying budget. This will help you make informed decisions about which products to purchase and in what quantities, and it will also help you avoid overspending or running out of inventory.
Financial clarity is essential for success!
Let’s get into the tea of how to successfully create a wholesale buying budget …
Wholesale Budget = ~ 50% of total sales
One way to create a wholesale buying budget is to base it on a percentage of your total sales. Here at The Boutique Hub and Hubventory, we recommend allocating around 50% of your total sales to your wholesale buying budget. This allows you to restock your inventory regularly and ensures that you have a good mix of products available for your customers.
- Determine your total sales for a given period of time. This could be a month, quarter, or year, depending on your business needs.
- Multiply your total sales by 50%. This will give you a rough estimate of how much you should allocate to your wholesale buying budget.
- Review your budget and make adjustments as needed. If you find that you’re consistently running out of certain products or that you have a lot of slow-moving items, you may want to adjust your budget to reflect this.
- Monitor your budget regularly and make adjustments as needed. As your business grows and your sales change, it’s important to regularly review and adjust your budget to ensure that you’re staying on track.
By following these steps and keeping a close eye on your wholesale buying budget, you’ll be able to make informed decisions about which products to purchase and in what quantities, and you’ll be able to avoid overspending or running out of inventory.
How to Make Sure You Aren’t Going OVER Your Budget
Budgets are in place for a reason! It’s important to actually stick to them to ensure financial security.
We have some good news, Hubventory just released a NEW Budget Planning feature! With this new feature, members can easily set budgets for every month for as many different categories as they need. Hubventory will alert you when you are getting close to reaching your budget, and when you have gone over!
Start planning, start saving and stay on budget!
By shopping wholesale on Hubventory, members can take advantage of fair pricing and even member discounts on top brands! Sign Up to Shop on Hubventory
