Protect them as if they were your own children

I came across this post on KnowTheMusicBiz.com by way of @dbrose67on Twitter.  It’s written by a guy named Steve Gerstman who has a company called Cut Merch.  It seems like a pretty cool merchandise company.  They have all the standards from T-shirts and hats to all the non-standards like bobble heads and jewelry.  What makes it even cooler is that the site also appears to have some inventory management and sales projection tools.  But you need to create an account to access those, and I unfortunately haven’t done that yet.

Back to the posted article itself, Mr. Gerstman gives some sage advice on designing, managing, and selling your merchandise.  My favorite tip he gives is this:  “your product inventory is like cash.”

I’ve worked with lots of independent artists who are doing a CD replication project for the first time.  When they come to pick up their order, they are often amazed at the sight of 1000 copies of their own album.  It can be easy to disregard the importance of every single disc when there are so many, but keep track of your inventory.

For example, let’s say you’re on tour.  You just played a show in Milwaukee and are now on your way to Chicago.  As you enter the Windy City, you realize you are missing a small box of 30 CDs.  No big deal, as you still have hundreds of copies in your vehicle.  You’ll still have enough to finish the tour, and they only cost you $1.10 per unit, so you’re out $33.  But if you were selling these CDs for $10 each, then that 30 CDs you lost was the equivalent of losing $300.

You can now see why it’s a good idea to track your inventory.  When you first get those CDs in your hand, do a quick count to verify the quantity and start a spreadsheet.  Keep records of any sales that you make, copies you give away as gifts or promos, damaged items, etc. 

If you do this, you’ll get a better idea as to how much revenue you made from your album.  You can then compare that data with the costs of producing your album.  This will give you better insight when planning your next CD replication project.