By Chad Wade – Because Running Out of Cash Is Faster Than Running Out of Customers
Most smoke shop owners don’t fail because they didn’t have enough customers.
They fail because their inventory management sucks.
They fail because their inventory management sucks.
Too much of the wrong stuff. Not enough of the right stuff. Money tied up in products that collect dust while the real movers are sold out.
If this sounds familiar, don’t panic — but don’t ignore it either. These mistakes will bleed you dry if you don’t fix them.
Mistake #1: Overordering Dead Products
You saw a hot new trend, bought cases of it, and now it’s sitting like bricks on your shelves.
Fix: Start small. Test new products in limited quantities. If it moves, reorder. If not, clear it fast (bundle, discount, or mystery bags).
Mistake #2: Running Out of Best-Sellers
You’ve got shelves of slow movers but you’re out of wraps, disposables, or papers every week. Customers don’t wait — they go to your competitor.
Fix: Know your top 10 SKUs. Always keep backup stock. If it sells daily, you should never run out.
Mistake #3: Ignoring Margins
A product can sell like crazy but still make you broke if your margins are garbage.
Fix: Track your profit per SKU, not just sales volume. Push products with strong markup, not just “what’s cool.”
Mistake #4: No System = Chaos
If you don’t know what you have until you “look around,” you’re already losing.
Fix: Use a real POS system that tracks inventory. Do weekly counts. Know exactly what’s moving, what’s slowing, and what needs to go.
Mistake #5: Ordering for Yourself, Not Customers
Too many owners stock what they like instead of what sells. Guess what? Your taste doesn’t pay the rent.
Fix: Watch customer demand. Ask what they want. Stock for them, not for you.
Inventory Rules That Save Shops
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80/20 Rule – 20% of products make 80% of your money. Identify them and keep them stocked.
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Test, Don’t Gamble – Try new products in small quantities first.
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Weekly Reviews – Look at sales reports every single week.
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Cash Flow First – Don’t tie up money in inventory you can’t move.
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Kill What Doesn’t Sell – Clear dead stock fast; don’t let it rot on shelves.
Final Word
Your inventory is your lifeblood.
Get it wrong, and you’ll strangle your own cash flow.
Get it right, and your shop runs like a money machine.
Get it wrong, and you’ll strangle your own cash flow.
Get it right, and your shop runs like a money machine.
Stop letting lazy inventory mistakes drain your business.
Be ruthless. Be smart. Be in control.
Be ruthless. Be smart. Be in control.
Want my Weekly Sales Tracker Tool that shows you exactly what’s making money and what’s wasting space? Grab it at https://chadwadetv.com/products/weekly-inventory-tracker-for-smoke-shops.