If your studio’s inventory costs are creeping up faster than a toddler with a paintbrush near your freshly cleaned walls, it’s time to take control. Managing your Paint Your Own Pottery (PYOP) inventory isn’t just about keeping shelves stocked—it’s about maximizing profits, minimizing waste, and ensuring your business runs like a well-glazed masterpiece.
Think of inventory turnover as the rhythm of your studio—too slow, and your shelves collect dust; too fast, and you’re scrambling to restock. Ideally, you should aim for an inventory turnover ratio of six times per year. That means you should be selling and restocking every two months.
Annual Cost of Goods Sold ÷ Average Inventory for the Year = Inventory Turnover Ratio
A higher turnover means you’re efficiently using your stock, keeping costs down, and avoiding excessive holding fees. The sweet spot? Keeping your cost of goods sold (COGS) at 18% or lower.
You want enough inventory to meet customer demand without drowning in extra bisque. The magic number? 60 days of inventory on hand.
365 ÷ Inventory Turnover Ratio = Days of Inventory On Hand
If your turnover ratio is six times per year, that leaves you with about 61 days of inventory—just enough to stay stocked without overloading your shelves (or your budget).
Let’s be real—you didn’t start a PYOP studio because you love spreadsheets. Automate your inventory tracking and accounting to stay on top of your numbers without drowning in them. Regularly review financial reports, monitor stock levels, and adjust based on demand to keep your business profitable and stress-free.
Managing your inventory wisely is like mixing the perfect glaze—it’s an art and a science. When you get it right, your business thrives. Keep those inventory numbers turning, your costs in check, and your shelves stocked just right.
If you're ready to transform your studio’s financial health, let’s chat. Because the best studios? They focus on creativity and smart business strategy.
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
