When buying mixed lots, money goes out before money comes in. Planning that period well keeps your business calm and lets you scale up more steadily.
Calculate your total purchase costs, not just the lot price
The price per kilogram or per box is only one part of your outlay. Freight and shipping costs are not included in our product prices, and on top of that you have costs for any import duties, storage space, packaging materials, and your own processing hours.
List those items in advance and add them up into a single amount per lot. That amount is the working capital you actually tie up, and therefore the figure on which you base your planning.
Account for the time between purchase and sale
Between paying for a lot and selling the last items lies a period of sorting, testing, photographing, and shipping. During that period your money is tied up in stock, no matter how well your items sell.
Measure that lead time as accurately as possible on your first lots: how many days did it take to get the lot ready for sale, and how many weeks before the bulk of it was sold? With those two figures you know how often per year you can realistically cycle your capital, and therefore how large your next purchase can responsibly be.
Build up from smaller lots to larger volumes
A full truckload ties up considerably more capital than a lot of parcel returns, and also requires more storage and processing capacity. For anyone still building up working capital, it is usually wiser to start with a smaller format and only scale up once the lead time is known and manageable.
Also plan the timing of your purchases. If you want stock in place ahead of the busy autumn period, you need to keep capital free in the weeks beforehand rather than having to arrange it at the last moment.
Set aside a buffer for variation and unsellable items
The exact composition of mixed and unsorted lots is not fixed in advance, and there is always a portion you resell with difficulty or not at all. So never calculate with the theoretical proceeds of every item combined.
In addition, keep a separate reserve for unforeseen costs, such as extra storage for a slower-moving lot or an unexpected freight invoice. A buffer ensures that one disappointing lot does not immediately block your next purchase.
Would you like to discuss which lot format suits the working capital you currently have available? Browse our range or feel free to contact us for a no-obligation conversation.