How much inventory?

[Kerrya]

I’m a very small break fix business operating out of my home.

I tallied up my inventory the other day and was surprised to see it was about $15K

I don’t keep a lot around, but the bits and pieces seem to add up.

In general, am I going overboard? I wanted to have all the basic items around. My thinking was that if people can get it from Amazon tomorrow I will maybe get some sales from people that needed to pick up something right away.

For small shops, fo you mind if I ask what your inventory usually runs?

Thanks

 

[seashore]

I’m a very small break fix business operating out of my home.
For small shops, fo you mind if I ask what your inventory usually runs?

I'm home-based break-fix too.
I keep three SATA SSDs as they're by far the most common upgrade.
One each of other common items inc powerline ethernet adaptors, universal laptop charger, speakers, keyboard, mouse, usb webcam, usb wifi.
Also a refurb laptop and desktop optimised and ready for sale.
Everything from Amazon and re-ordered as soon as they're sold.

 

[pcservices]

We have a break fix shop and keep common things like sata ssds, m.2 ssds, usb's, couple keyboard and mouse sets, power supply, USB wifi, couple routers for home customers. Everything else we have in the shop is mainly parts for testing or networking things for businesses. Most other things we order as needed from amazon, newegg business, D&H. Stuff does accumulate quickly though!!

 

[GTP]

I'm home-based break-fix too.
I keep three SATA SSDs as they're by far the most common upgrade.
One each of other common items inc powerline ethernet adaptors, universal laptop charger, speakers, keyboard, mouse, usb webcam, usb wifi.
Also a refurb laptop and desktop optimised and ready for sale.
Everything from Amazon and re-ordered as soon as they're sold.

+1 this ^^
I have access to fast shipping so no need to keep many items in stock.

 

[nlinecomputers]

With a recession looming you want to keep as little stock as possible. There’s not enough “gotta have it today” types to make it profitable. Computer equipment rots faster than fruit on your kitchen table.

 

[YeOldeStonecat]

You've got to find your pace as far as....how fast do you want to be able to replace a part and get someone up and running quickly?

For us, we manage business clients. They won't wait a day or three to get their network up and running again, or a server up and running again, or an important computer such as the finance person.

For residentials...most can probably tolerate a little wait.

 

[NETWizz]

I keep capital equipment like a Fluke network tester, a box of network cable, and some proprietary tools but as for parts I just order what I need and get it in a day or two. Usually my orders are $10's of thousands of dollars, and we cut a PO, so it takes longer, but I think a day or two for customers would be fine if I was a business owner.

Basically, I would look at every computer and diagnose it on day 0 (the day it comes in) placing ALL orders immediately and expect to get everything in a couple of days. That would make the unit ready on Day 2 most of the time going back to the customer in < 72 hours. Obviously it is smart to keep some network cables, a couple SSDs, some common RAM sticks and capacities, boxes of keyboards, some mice, USB cables, Display Port, Power Cables, and HDMI to name a few.

 

[Markverhyden]

That seems like a very high number for a small home based shop. Are you remote only or do you have walk in as well? What's your percentage of sales labor vs parts ordered vs inventory parts? A big problem with carrying inventory in the tech sector is aging. The market value of many parts can drop 25-50% with in a year or less. Calculate your inventory turnover ration. Generally speaking a ratio of 2 to 4 considered to be good. It means you're turning over your inventory in a timely fashion. I've never had walk in and was strictly mobile when I was more focused on break/fix. Had maybe $1000 in inventory tops, but I had a Microcenter nearby. Only had a used DT and LT as a loaner while a replacement was being ordered.

ratio = Cost of goods sold/((starting inventory+ending inventory)/2)

 

[Rigo]

I keep very little in stock.
My quotations if parts are required demand prepayment prior to ordering.
Like someone said here this stuff rots faster than meat on the kitchen bench.
Plus the number of times the job was extremely urgent initially until completed, then they take their time to come to collect it and I'd have money sitting in parts on yet to be paid for jobs.
So I have to take a loan to get a job done for someone to sits on their bum whilst I'm paying interest for a meagre mark up.
If they don't agree they can go to the competitor no worries

 

[carmen617]

Break/fix out of my home. I keep a few SSDs on hand that I buy when on sale. Everything else I overnight from Amazon or run to Microcenter. My experience is that if I end up with a part I ordered that doesn't work out for the customer, it almost never finds a home.

 

[frase]

Same as @GTP I have supplier not far from me and is fast delivery. I keep around minimal things like keyboards/mice, PSU, cables, RAM, usb wifi, universal laptop charger and spare monitor.

 

[phaZed]

Seems like a lot to me, as well. Home-based break fix here too - we have approx $5000 of inventory on hand.

 

[britechguy]

For small shops, fo you mind if I ask what your inventory usually runs?

I'm home-based and break-fix, too. I have zero inventory, because I so seldom need hardware, and when I do, it's generally easy to get quickly.

 

[Captain Spaulding]

Also home-base/break-fix, I carry very little inventory, the stuff I carry allows me to do some jobs same day when customers are willing to pay a more for the service:

• Selection of 240, 480, 1TB SSD drives purchased on Amazon when on offer.
• Some 64,128GB, 256GB USB sticks which are generally enough storage when a customer wants photos retreiving from a dead machine.
• A small selection of DDR3 & DDR4 desktop and laptop RAM sticks.
• A desktop PSU, I've lost count of the amount of times I've been able to charge really good money to business customers that need a desktop with a dead PSU bringing back to life very quickly.
• Original iMac 21.5" & 27" adhesive bought in bulk

Other than that everything else can be ordered next day on Amazon or if a bit more specialised on eBay and the customer will have to wait.
$15k of inventory is a LOT I doubt mine is ever more than $1K

 

[ell]

I’m a very small break fix business operating out of my home.

I tallied up my inventory the other day and was surprised to see it was about $15K

I don’t keep a lot around, but the bits and pieces seem to add up.

In general, am I going overboard? I wanted to have all the basic items around. My thinking was that if people can get it from Amazon tomorrow I will maybe get some sales from people that needed to pick up something right away.

For small shops, fo you mind if I ask what your inventory usually runs?

Thanks

I've been a home based business for 15+ yrs and the only inventory I have is a box filled with used power cords! I learned early on its easier and cheaper to order what I need when I need it. I seldom lose any jobs because they aren't willing to wait a week for shipping.

 

[Sky-Knight]

I have some bins with cables in them of varying types, and only ever stock 2 ATX power supplies and 2 500gb SATA SSDs intentionally. Though I do keep keyboards and mice around too. But yeah the entire pile is worth <$500.

But I also have some stupid number of Amazon warehouses here in Phoenix, so I can same day many things and next day everything else. If someone cannot wait until tomorrow, they can go find someone else. I have contracts and sell refurb desktops to businesses so they have their own spares to cover that service level.

 

[allanc]

I keep an assortment of n/w, monitor and power cables, surge protectors, mice, keyboards as well as some other inexpensive odds and sods in the car.
Nowhere close to $15k.
For me, travel time is down time 99.9% of the time.
Unless of course, I am lucky enough to receive a call that does not require a remote connection, on-site visit or a lot of focus so that I can continue to drive safely.
Here, in Toronto Canada, there are many reasons to avoid travel such as rush-hour traffic (2 * 4 hours), construction, road closures, one-way streets, lack of parking and snow.
I would rather invest in some inventory and not have to make a second trip to a client.

 

[VISA MC]

My inventory now is around $12k, which includes enough network equipment to install 2-3 of our average networks, around 20 refurbished machines and misc. parts.

I’ll go against the grain a little here in I think it was my ability to carry stock that made us do so well during covid. When I saw parts availability, I loaded up way more than before, so we were able to actually change out hard drives, install a few hotel networks, install a handful of PBX systems without missing a beat. Just look at how fast you will use it.

Personally I didn’t want to be the guy that quoted something and had to wait 2 weeks plus for parts to show up. Amazon / FedEx / UPS whomever had delays but we kept enough stock that it wasn’t as big of a problem as it was for some.

 

[cypress]

I keep very little and I do break-fix mostly remotely and through my home. Things I keep on hand are

-SSD's of both 256GB and 512GB along
-Graphics card
-PSU
-Wireless keyboard and mouse
-USB Flash Drives, 64G and 128GB
- USB 2TB External Hard drive

 

[brandonkick]

I wouldn't keep much honestly. ESPECIALLY if your average experience with clientele is that you can't mark stuff up enough to warrant the large tie up of capital. HEY, I can get that SSD on amazon for $30 and your charging $45... screw that man I'll wait the extra two days. Whatever. But some people may need / want expedited service and WILL allow you to charge a reasonable markup.

A few SSD's, a few power supplies, maybe two DVD burner drives and some odds and ends.... a couple HDMI cables, DVI cables, VGA cables and make a displayport to HDMI adapter, DVI to VGA adapter. A set or two of wireless mouse and keyboard. Restock as it gets used. Everything else gets ordered as needed.

If you can find good deals, maybe a small stock of 8GB / 16GB thumb drives.

15K is wayyy more than I'd keep, but then again it's hard to qualify that number for you. If I were doing 20K worth of business every month, I'd be far less apprehensive then say if I were doing 4K or 5K a month.


You'll find most people will wait. With amazon prime, barring special circumstances, you can get things in 1-3 days. We live in an age where people will whip out their phone on the spot and price check.