Many new fireworks retailers want to know what fireworks to buy, or how they should place their fireworks order. We have worked with hundereds of fireworks stores, tents, and stands around the country on placing orders for their business. Below are general guidelines on how you can make the best purchasing decision for your business.
1) Plan your product and pricing strategy
Look at our website or catalog and you will see there are many fireworks categories. Most companies will try to offer multiple options per category. Variety is great, but should be done with a plan. Make sure you have multiple price points within each category you offer, and that you only offer products that are legal at your location.
People ask us how much they should mark up thier fireworks. While pricing has a lot of variables such as cost and competition, generally 2.5-3x is a good rule of thumb with smaller items demanding a higher markup, and more expensive items taking a smaller markup. Requesting a Suggested Retail Price List from your Account Rep is also a good way to start. Once you have a pricing strategy in place, you can determine what you would sell items for in your location, to make sure that you have low-cost, middle, and premium options in each category.
You also want to make sure you are only selling items that are legal in your area. You can start by looking here to see laws for your state. You should also contact your local governing body to see if there are further restrictions in your area.
Finally, make sure you have enough variety within each category. Once you have low, middle, and high price points covered you can expand the depth of your product line within those categories and price points. Our research has shown that value 500-gram cakes / 350-gram cakes are hot sellers for most retailers. So are artillery shells and 200-gram cakes. Make sure you have enough options in these segments to compete with other local fireworks companies.
2) Plan your specials
As part of your marketing plan, you should have some special deals to encourage potential customers to come to your location. Whether it is buy one get one free, 50% off, free with purchase, or something else, you need to have the product on hand to supply your promotion.
How much stock you will need depends on your special and your location, but we commonly see retailers purchase 5x-8x the normal case count for a special. For example, a company that typically purchase 5 cases of Premium Festival Balls may buy 25-40 cases for a special, depending on how compelling the offer is and how much they are promoting the offer.
3) Order to fill your shelves and backstock
One of the hardest things to determine your first year is how many products you can display. There are many ways to do this, so choose what works best for you. Some companies buy everything they want and find spaces later – adding shelves or peg and hook displays to maximize space. Others estimate the number of items they can place on a table and the number of tables they can place in their location.
Besides having a case out for display, you will need another case (or cases) of backstock for when your tables or shelfs start to run low. If you live close to our warehouse, this isn’t much of a concern as we run extended hours through the fireworks season. If you live further away, you may want to stock up on your first order to avoid a second shipping charge.