Tips for Managing Retail Firework Inventory for 4th of July 2021
June 10, 2021
Make the most of your inventory this Independence Day season.
The fireworks shortage we are currently experiencing is going to result in some inventory challenges this season. We at Spirit of 76 want to give you some tips for how you can make the most of your inventory for this Independence Day season.
Tip #1: Make sure you are priced for success.
You should consider maintaining the margins that have made your business successful, and price accordingly. With the increased cost of goods due to the higher ocean freight and the lack of supply, what you have on hand and on order now is likely to be all the inventory you will have to sell for this 4th. That inventory needs to be able to net what your business requires. People are aware of the increase in consumer goods, and your fireworks are not the only thing that will have a higher price tag.
Tip #2: Go light on discounts this season.
Promotions like 10% off your purchase at this dollar amount, or 20% if you shop on this day, and “buy one get two free” are great tools and can be impactful in your marketing efforts, but this season you should be mindful of the promotions you run so you can maximize the value of your inventory. People are hungry for fireworks! Remember how last season went? If you have fireworks available to sell on the 3rd & 4th, it is our opinion that you will not need to offer a promotion to attract customers.
Tip #3: Consider saving some of your inventory until the 3rd and 4th of July.
This could involve only putting a certain number of items on your shelves each day up until the last days of the selling period. As is typical in this business, your busiest selling days will be the 3rd and 4th of July, and it will be valuable to be sure you have inventory available to sell on each of those days.
No one knows your customer base and your own business better than you. You have likely already thought about how you will ensure your business is successful and have a plan in place for this. You might find other ways to maximise your profits, such as reducing your costs for labor or advertising. These tips are just things that we’ve been talking about with our clients recently and we wanted to share with everyone.
Everybody here at Spirit of 76 wishes you the absolute best of luck this 4th of July.