Profit Leaks Part 2: How to Stop Overbuying Supplies & Inventory Bloat

Welcome back to The Vendor Mindset — if you’ve been following along, you know we are building profitable booths with intention, not guesswork.

If you’re new here — I’m Nathan.

I’m a Director of Finance by day, and your Sell Out Vendor Coach by the weekend.

I’ve been an entrepreneur for over 30 years, and I’ve been selling at live events for more than 13 years with 500+ shows under my belt.

I’ve seen vendors come in excited, and I’ve seen vendors burn out.

And most of the time, burnout isn’t caused by bad markets.

It’s caused by profit leaks.

Last week, we talked about the obvious leaks, pricing, undervaluing labor, discounting, and emotional decision making.

Today, we’re going deeper into the leaks that live in your craft room, your storage totes, your shelves, and your prep tables:

✅ Overbuying materials “just in case”

 

✅ Inventory bloat — making too much of the wrong items

 

 

These leaks don’t show up on your Square report.

 

They show up in your storage space and your bank balance.

The Yarn Wall That Stole My Profit


I remember the year I thought I had it figured out:

 

 

I built the perfect yarn wall.

Every shade. Every fiber weight. Every impulse sale I couldn’t resist.

It looked beautiful… inspiring… like pure creative potential.

But the truth?

It wasn’t inventory.

It was profit sitting on a shelf.

And profit sitting on a shelf cannot:

  • Pay booth fees
  • Fund new displays
  • Cover tools that make work easier
  • Or grow your business

It took time for me to accept that:

 

I wasn’t preparing, I was hoarding because I was afraid.

Afraid of selling out.

Afraid of missing a sale.

Afraid my booth wouldn’t look “full enough.”

Fear was running my business.

And fear is expensive.

1. Overbuying Materials ≠ Preparedness

Buying supplies feels productive.

It triggers the “I’m building” feeling.

But if you buy materials without a confirmed plan to sell the finished item:

That’s not inventory.

That’s storage.

Storage is stalled cash flow.

Pro Tip:

If you haven’t used it in 90 days, it’s not “stock.” It’s frozen profit.

Pro Tip — The Reorder Rule:

 

Only restock a material after the finished product sells twice at full price.

 

The second sale confirms real demand.

2. Inventory Bloat: Producing Without Data

 

 

 

Creating feels like momentum — but production without strategy is gambling.

 

If you’re making:

  • What you like
  • What might sell someday
  • Large batches before testing demand

Your booth becomes a guessing booth, and guessing doesn’t convert.

 

The 80/20 Booth Rule

  • 80% of your booth = proven bestsellers
  • 20% = fun experiments, seasonal items, new releases

More than 20% experiment = confused customers.

 

And confused customers walk away.

Pro Tip:
Your booth is not an art gallery.
Your booth is a storefront , it needs clarity.

How to Fix These Leaks Starting Today

 

 

 

Step 1: Identify Your Bestsellers

 

 

Look at your last 3–5 events and note:

  • Units sold

 

  • Profit margin
  • Time required to produce

Where these overlap = your core line.


Step 2: Pause Purchasing

 

 

No new supplies until:

  • Existing materials are used
  • Bestsellers are validated
  • Profit is being measured intentionally

Step 3: Review After Every Event

 

 

Ask:

  • What sold the most?
  • What didn’t move?
  • What did customers ask for that I didn’t have?

Make your booth evolve based on data, not feelings.

Step 4: Move Out the Bloat Without Discounting Your Brand

Use:

  • Mystery bags
  • Last-chance baskets
  • Buy 2 get 1 offers

Move inventory — don’t undermine your value.

 

If you’re ready to stop guessing and start making decisions based on actual numbers:

Comment TRACKER

And I’ll send you my Expense + Profit Tracker so you can finally see where your money is going — and where it should be going.

Clarity changes everything.

Until next week, stay focused, stay profitable, and keep turning your booth into your bank.

 

— Nathan

Director of Finance during the day

Sell out Booth Event on the weekends 
Your Sell-Out Vendor Coach

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