Selling Products in Different Pack Sizes

Turbo Inventory provides flexible options for managing products purchased in bulk and sold in different sizes. Whether you buy products in larger quantities (e.g., a 12-pack) and sell them in smaller units (e.g., singles, 3-packs, or 9-packs), there are two primary methods to manage this: Bill of Materials and Product Sizes. Both methods have their advantages and disadvantages, and the choice depends on your workflow preferences. This guide will explain both options in detail.

Option 1: Bill of Materials (BOM)

The Bill of Materials (BOM) method is a flexible and efficient way to manage products purchased in bulk and sold in smaller units. This option allows you to create new products based on combinations of other products, so you can easily track stock levels for individual units, multi-packs, and larger packs.

How to Use Bill of Materials:

1. Create the Base Product:
   • The product you purchase in bulk (e.g., a 12-pack or a large box) should be created as a single product in Turbo Inventory.
2. Create Pack Variants:
   • Next, create the variants of the product for sale, such as a 3-pack, 6-pack, or 12-pack, using the Bill of Materials feature.
   • For example, if you're selling a Can of Cokein different sizes, you would create:
     • Single Can
     • 3-Pack
     • 6-Pack
     • 12-Pack
3. Link the Base Product:
   • In the Bill of Materials, link the base product (the single can) to the multi-pack products. Every time a sale is made, the system will adjust the stock of the individual items as well as the multi-packs.
4. Control Stock:
   • When you stock the product, you will track the single units in your inventory. As orders come in, you can create the multi-packs and reduce the stock of individual units while increasing the stock of the multi-packs. For example, if you are selling 12 cans in a 12-pack, the system will reduce your stock of single cans and increase the stock of the 12-pack.
5. Packaging and Stock Control:
   • If you're assembling products like 6-packs or 3-packs yourself, Turbo allows you to track the stock of both individual cans and the packs. You can record the assembly of the packs in Turbo Inventory, reducing the available stock of single units and increasing the available stock of the assembled packs.
6. Benefits of BOM:
   • Full stock control of all sizes.
   • Flexibility in selling single units or multi-packs.
   • Automatic stock adjustments when products are packaged together.
   • Ability to include the cost of packaging in your margin calculations.

Example:
If you're buying cans in bulk (e.g., a 12-pack) and selling them individually, you can track the cans as individual items in your inventory and create multi-packs (e.g., a 6-pack) using the Bill of Materials. This way, you can track the exact stock available for both the single cans and the multi-packs.

Option 2: Product Sizes

The Product Sizes method is a more manual approach where you can sell products in different pack sizes, but without the flexibility of the Bill of Materials. You manually adjust the pricing and stock levels for each size variant.

How to Use Product Sizes:

1. Set Up Product Sizes:
   • Go to Settings > Tools > Units of Measure.
   • Set up all the available product sizes you want to offer (e.g., single can, box of 20, 12-pack).
2. Adjust Stock and Pricing:
   • When you purchase stock, you will be tracking the products by their unit of measure. For example, if you purchase products in bulk, you would need to manually update the stock quantity for each product size (e.g., individual cans and packs).
3. Manual Pricing:
   • You can specify the price for each product size. For example, a box of 20 cans could be priced differently from a single can. However, if the price of a single unit changes, you will need to manually update the price for all pack sizes.
4. Sales Process:
   • When selling, you will select the product size you want to sell. For instance, when selling a 20-can box, you will need to manually ensure the correct pack size is selected. This method does not automatically update stock or pricing based on packaging, so it requires more manual work.
5. Challenges:
   • If the price of a single unit increases, you must manually update the prices for each product size.
   • Stock control is less efficient as you will not see the available stock for multi-packs unless you manually adjust it each time.
6. Benefits:
   • Simpler to set up, especially if you don’t want to use Bill of Materials.
   • Easier for businesses with fewer variants and simpler stock management.

Comparison: BOM vs. Product Sizes

Conclusion

Choosing between Bill of Materials (BOM) and Product Sizes depends on your business needs. BOM offers a more automated and flexible solution for managing multiple product sizes, while Product Sizes is a simpler, more manual method for businesses with fewer variants or simpler workflows.

For better stock control, flexibility, and easier pricing management, the Bill of Materials method is generally recommended. However, if you prefer a less complex setup and are willing to manage stock and pricing manually, Product Sizes may be the right option for you.