To Buy Or Hire?

Is buying furniture for your styling business a good idea?

The truth is, it depends.

At Huntley + Co, we hire furniture and decor to property stylists throughout Sydney, so naturally we tend to recommend hiring over buying. However, as we started our careers as property stylists, we can certainly identify scenarios where buying your own inventory can make sense. So, we have written this article to highlight the different scenarios that lend themselves to buying stock versus hiring stock and ultimately help you to avoid come common, but rarely considered pitfalls of buying inventory.

Let’s start with the pro’s of buying: 

Get the look you want

Buying your own inventory allows you to source the exact pieces you want, in order to achieve a look that is both on trend and best suits your client’s property. You can source from as many different suppliers as you wish, so your stock options are perceived to be limitless.

Stand out from the crowd

Who wants their Instagram feed to look exactly like their competitors? By curating your own range, you will strategically be able to deliver your vision and stand out online. You will likely become known for a particular style, which can attract more customers within your niche.

Have assets to sell

Once you have used your pieces on a few jobs, you are left with assets that can be sold online. You may have even paid the pieces off through your hires, so once you sell them, it’s all profit – this is an ideal scenario. Once you have freed up some funds, you can buy new pieces to add to your range.

Next, let’s discuss some pro’s of hiring: 

Cash flow is king

Hiring furniture and decor allows you to start your styling business with a lower initial outlay, preserving your cash flow and enabling your capital to be spent on marketing, training, or other areas that can directly grow your business (and reward yourself for your hard work!).

Storage and warehousing

If you choose to buy your own inventory, you’ll require a substantial amount of space to store it. Warehousing costs are considerable and often include rent, utilities and maintenance. Additionally, you will need to invest in shelving, security systems, and other infrastructure to ensure your inventory is stored safely and efficiently. These ongoing costs can quickly add up, significantly impacting your overall operating costs and profit margin.

Transportation and delivery

Owning your own stock means that you are responsible for transporting it to and from various locations. This requires investment in trucks and the hiring of staff to drive these trucks and perform the deliveries and removals. This will also add to your overhead costs and result in more of your time spent on logistics, leaving less time for styling.

Packaging and handling

Secure packaging is vital to protect your inventory during both transit and storage. Without adequate packaging, your furniture and decor are at risk of damage, which can lead to costly repairs or replacements. The integrity of your stock will also affect repeat business. High-quality packing materials are costly but essential to safeguard your inventory. In addition to packing materials, you’ll need specialised machinery such as pallet jacks and forklifts to handle and secure your inventory efficiently. Not only is this equipment costly, but licensing is also required to operate this machinery – more expenses to be mindful of.

Insurance

Owning inventory necessitates comprehensive insurance to cover potential damages or losses. This is another significant expense to consider when weighing up your options to buy or hire.

Some hidden pitfalls to watch out for:

Depreciation

Furniture and decor depreciate over time, meaning their value decreases the longer you own them. By hiring, you avoid the financial setback of depreciation, while always being able to use current, on-trend, well-maintained pieces without the concern of their resale value.

Seasonal flexibility

Property styling is inherently seasonal, with peak times driven by the real estate market, economic events and holidays. When you own your inventory, you are beholden to all of the above-mentioned costs, even during the quieter periods. Hiring stock allows you to scale your inventory up or down based on demand, ensuring that you are only paying for what you need when you need it.

Styling flexibility

Hiring gives you access to a diverse range of furniture and decor options, enabling you to meet the brief each and every time. No two properties are ever the same, so rather than being limited only by the stock you carry, you can choose pieces that perfectly suit the style of each property. This flexibility ensures that you can always deliver the best possible result for your clients, while demonstrating to your agents that you are able to achieve multiple different looks.

Costs aside, owning inventory inevitably means your time and energy is spread thin by the operational and logistical demands of the business – this can be overwhelming, even for the most passionate of stylists. Outsourcing by way of hiring your inventory, allows you to focus on what you do best – the styling.

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