Avoid the Inventory Trap: Smart Ordering for Museum Stores

We’ve all been there. You’re looking at the wholesale catalog, your finger hovering over the "submit" button. The prices are tempting. The unit cost for 500 of those totes is so much lower than for 100. It’s a no-brainer, right? You’re saving money by ordering in bulk!

Hold that thought.

While the siren song of a lower unit cost is hard to resist, it’s a trap I’ve seen many museum stores fall into. The truth is, you're not saving money if you can't sell what you've bought. A deep discount on an item that now sits in boxes, collecting dust in the back room, is not only a loss but a financial anchor, tying up valuable capital and physical space.

When "Saving Money" Becomes a Liability

Let's talk about some of the most common culprits of overstocking.

The Dated Disaster: Products featuring a specific year, like calendars and holiday ornaments, are prime examples. They have a built-in expiration date. Once the ball drops on New Year's Eve or the holiday season passes, their value plummets.

Any remaining stock is likely headed for a deep discount bin or, worse, the trash. You have to be strategic in your ordering.

That Publication For The Definitely-Going-To-Be-A-Blockbuster Exhibition: We’ve all felt the thrill of an upcoming exhibition. The buzz from the curatorial team, the pull from the press release, and the board are sure that this is the one. So, you order thousands of non-returnable books fresh to your door. But then, for reasons you couldn’t have predicted, the show doesn’t hit blockbuster status. Maybe the weather was terrible, a competing event drew away visitors, or the public just didn't connect with it. Now, the exhibition has ended, the exhibit has been all but forgotten, and you're left with a literal pallet of books you'll be trying to sell for years to come.

The Outdated Logo: Your museum just went through a major rebrand. The new logo is fresh, modern, and exciting. That's great news! But what about the hundreds of pens, tote bags, and keychains you have in storage with the old logo? They're now obsolete. This isn't to say you should avoid branded merchandise-it’s a cornerstone of any museum store. However, it's a powerful argument for reconsidering ordering large quantities of items with logos that may be changing.

The Unseen Costs: More Than Just Dollars and Cents

Beyond the direct financial hit, overstocking takes a toll on your team and your store’s operations. Remember that inventory isn't just the price you pay for the item. It’s also the cost of the space it takes up, the time spent managing it, and the potential for it to become damaged or obsolete.

When it's time for that dreaded annual physical inventory count, a massive, unmoving stock becomes a heavy burden. I know I’ve seen more than one inventory with tears and exhaustion. Save yourself from that headache!

The Art of Ordering Smart: A Balanced Approach

So, what’s the alternative? Should you just stop ordering in bulk altogether? Not at all. The key isn't to be afraid of ordering, but to have the data & strategies to order smart.

Here’s how you can find a better balance:

1. Know Your Audience and Your Sales History: Don't just rely on a hunch. Dive into your sales data. What products consistently perform well? What are your best-sellers year after year? Use this information to guide your decisions. This is where a little bit of forecasting comes in handy. While you don't need a complex algorithm, looking at past trends and using a few key performance indicators (KPIs) can give you a better idea of what to expect. If a particular book or piece of jewelry has been a top seller for the past five years, you have a stronger case for ordering a larger quantity.

2. Start Small, Reorder Later: When in doubt, start with a smaller order. It might mean a slightly higher unit cost upfront, but it’s far better to experiment with a new item than to have a product languish on shelves forever.

3. Future-Proof Your Inventory: Opt for items that aren't tied to a specific year or a temporary logo. Think classic, timeless designs. Consider items that will continue to sell year after year, such as reproductions of popular artworks or books on enduring subjects. Not to say you shouldn’t have an anniversary product or a yearly limited edition item, but have a plan to move those items before and after their dates.

4. Time To Move On: Regularly evaluate your inventory and be ready to say goodbye. Whether it's through markdowns, donating to other departments, or other solutions, making room for new products is essential for a healthy bottom line.

By ordering smart, relying on data, and focusing on quality over quantity, you can create a dynamic, profitable museum store that delights visitors and doesn’t fall for inventory traps.

What’s a time you've learned (or inherited!) a valuable lesson about ordering?