How did we arrive at the current shed inventory model, and how is it evolving?
In the shed industry, there looms a persistent, weighty thought—the substantial costs associated with maintaining inventory.
As I reflect on my nearly 13-year journey from my initial introduction to the shed business, eight of which this industry has been my primary source of income, this contemplation deepens year after year.
Now, with almost four years of podcasting under my belt—through interviews with manufacturers, sellers, and those entrenched in the everyday occurrences of the “shed life”—I find myself engrossed by this conundrum.
In my podcast, I frequently ask guests about their journey: where they came from, where they are now, and where they see themselves heading. Their individual stories invariably mirror the landscape of the industry because, fundamentally, they are the industry.
Through our dialogues, one theme continually surfaces—the nature of inventory. How did we arrive at this model, and how is it evolving?
Point of Entry
Years ago, the blueprint for entry into the shed market was straightforward. Newcomers would “hang out their shingle,” a phrase symbolizing starting a business with modest means.
As one of my early podcast guests, Domenic Mangeno from Jamaica Cottage Shop, said, “All you needed was a Subaru and a Skillsaw.” With just those tools, anyone could assemble a product, place it roadside, and capture the attention of passersby—disruptive marketing at its finest.
Unlike premeditated marketing tactics, this unsophisticated strategy organically drew onlookers, much like the packs of chewing gum yearn for shoppers’ attention in a store’s impulse aisle near the checkout registers.
The vibrant colors, unique designs, and practical craftsmanship compelled potential customers to take a closer look, often resulting in inquiries via informative brochures or knowledgeable salespeople. It was quintessentially American—where initiative, creativity, and skill could turn into a profitable business.
This isn’t merely a tale from yesteryears; it’s a narrative that persists today.
Many in the industry recount their humble beginnings similarly. But, as country music artist Tracy Lawrence poignantly reminds us in his song, “Time marches on, everything changes.”
The pressing question is: Can this longstanding model be sustained in the face of modern retail development?
Some manufacturers still thrive using traditional strategies—they start small and organically grow on the success of their inventory. The principle is simple: create a few structures, find a willing landowner with space to spare in exchange for a sales commission, and expand as demand increases.
Nonetheless, it leads to pondering: When will this model cease to be the optimal growth strategy for manufacturers? Constructing inventory with the hope of the eventual sale serves its purpose. Customers find value by acquiring additional storage space, dissociated from their main residence, in exchange for monetary value. Viola, a business is born, and then another, and another, and so on.
The crux of my inquiry is this: if customers are aware that you trade in storage shed construction rather than depending solely on what’s readily available, would showcasing a product still be necessary for them to buy? Or would previous examples and a touch of creativity suffice to seal the deal?
I’ve been there as a sales manager, and I understand the appeal. Customers can’t buy what they don’t see. A vast inventory lot offers a unique browsing experience. However, many times customers select something entirely new construction, seeking a custom option that aligns with their preferences or meets homeowner association (HOA) regulations.
Technological Shift
But consider the shift—the changes ushered in by the Internet, inventive websites, social media, and particularly by 3D shed design platforms like ShedPro and Idea Room. These technologies bring ideas to life more vividly than ever before.
New technological advancements enable lead influx from diverse channels, feeding into customer relationship management (CRM) software, which organizes every contact and conversation into a structured sales process.
A comment I frequently heard as a sales manager was about traffic count. We would try to position locations with at least 10,000 cars passing by, counting on that steady stream of visibility. Compare this to today’s digital platforms, which let you access five times the prospective audience in a 50-mile radius without them even getting out of their chairs.
While I agree that seeing tangible products often cements buying decisions—I confess, I sometimes perform better when I can see and touch—that doesn’t offset the benefits of platforms that maximize productivity, packing more efficiency into the 24-hour day. Increasingly, our world supports a retail landscape comfortable with the notion of technology-integrated shopping.
This isn’t a single brand or company’s idea; it’s the fabric of a generation attuned to these advances. Hand the newest gadget to someone half your age, they’ll have it running faster than you can wonder how.
So, what does this mean for inventory management? If your sales team insists more inventory is the key to meeting and surpassing quotas (if applicable), perhaps it’s time to refocus spending on training rather than merely increasing stock.
While zero inventory isn’t necessarily the solution, I know several companies excelling presently using this strategy. Emphasizing the big fish growing larger, they invest not just in inventory but in systems and strategies designed for long-term profitability.
Areas garnering investment include 3D modeling, comprehensive point of sale (POS) solutions, marketing enhancements via engaging websites, search engine optimization (SEO), Google and Meta Ads, Roku endorsements—bringing plentiful video content into play, and more.
Question to Ponder
To clarify, this is not a push toward an inventory retreat, nor is it foreseeing a tide reversal where digital fades. Let’s look beyond our niche: there’s no sign this digital trend will ebb soon—rather, it’s growing exponentially.
I wonder about a company recently talking to me about its $800,000 inventory value. How different could their operations look if even a portion of that investment went toward enhancing digital footprints versus creating physical ones? Moreover, how will the landscape fare for dealer networks ahead? Will businesses uphold their omnipresence, or will some remove their shingles, venturing beyond shed construction?
To those expanding inventory aggressively, I’m not sounding alarms; perhaps a reevaluation of spending efficiency is prudent. Contemplate whether your trajectory is sustainability-bound through innovation and technological adoption, remembering that “everything changes, everything changes.”
Let’s hope this is the best year yet for all of us in the shed industry—brimming with opportunities that marry tradition and technology seamlessly, nurturing growth while acknowledging change.
Stay curious, folks. From one Shed Geek to another, keep pondering possibilities and find joy in reinvigorating this age-old trade through every avenue the digital age brings to us.
