Yes, it’s been quite some time since I last sold a shed—long before the COVID boom, in fact. I had the unfortunate timing of closing my last shed lot just before the frenzy. While I still receive inquiries, I typically hand off leads to my shed-builder and -seller friends nearby.
However, nearly six years after stepping back from direct sales to focus on other endeavors, I felt it was time to dip my toes back into the water. Not only do we believe we can better serve customers, but re-engaging in sales also provides us with real-time experiences to share on the podcast.
This does not indicate the end of Shed Geek by any means, but rather a refocus on the endeavors that serve as conversations we reflect on weekly as we bring you new dialogues and monologues. We are still full-steam ahead with the podcast—to be point blank, we just don’t want to get too lost in discussing an industry that we don’t have current experiences in to share that mirror the current experiences of our audience. This will help to create show topics and generate interview questions that are MSPC (must-see-pod-cast).
Sometimes, we represent products and services that we haven’t used recently, and I genuinely believe that experience is the best teacher. Honestly, I miss dealing with the end users of our products. As we embark on this renewed journey, I’d like to share our unique approach to getting back into direct sales. I’m not proclaiming it to be a foolproof formula, but rather an insight into how we are tackling this venture. After all, many of you have generously shared your experiences with me.
THE IMPORTANCE OF QUALITY
First things first: the products themselves. It goes without saying that we aim to sell quality products. Throughout my years in sales, I’ve never heard a customer say, “Give me something of lesser quality.”
More commonly, I hear, “Give me a better price.” This sentiment is universal, regardless of what you are selling. Thus, it’s crucial that we offer products that not only meet the needs of our customers but are also something we can feel confident meets the durability requests of customers.
This brings me to the decision between wholesale and consignment. Here in the Midwest, it seems that consignment opportunities are becoming more prevalent than wholesale options.
With wholesale, there are various negotiation factors to consider, such as minimum order quantities and delivery logistics. What’s the margin for increasing prices above MSRP? On the other hand, consignment typically involves a standard 10 percent sales commission, with performance incentives in some cases.
However, the responsibility for delivery usually falls on the company, which can be beneficial for the consignment dealer. Essentially, the more you sell, the more you earn; however, the margins are a bit thinner. Additionally, you should consider the structure of your business—are you an independently owned sales lot, or are you operating under a company’s brand that requires you to sell only their product?
LEARNING FROM THE INDUSTRY LEADERS
As the saying goes, “the knee bone is connected to the leg bone,” and so on, and in business, one thought or planning area often leads to another. This has led me to consider Tuff Shed, arguably the most successful shed company in North America. While I don’t claim to fully understand their business model, they certainly seem to excel at what they do.
From what I gather, they strategically place storefronts in high-traffic areas and combine visibility with a robust digital marketing approach to reach potential customers. By building on-site rather than relying solely on prefabrication, they minimize inventory and focus on new construction builds—a model we find attractive as we consider what products to carry.
About a year ago, I started asking fellow shed sellers what percentage of their sales came from inventory versus new construction builds. Although we lack official data, I was genuinely surprised by the responses, which indicated that many were selling 50 percent or more of new builds.
This begs the question: Why invest heavily in inventory? Why not focus on selling more new builds and allocate some of that investment toward an effective digital marketing strategy or even other areas of business that need the financial resources? Eliminating just one new sales lot and reallocating resources to digital marketing could significantly enhance your online sales efforts and increase ROI—not to mention that selling mostly new construction allows manufacturers to create a JIT (just-in-time) inventory process, saving considerable inventory cost instead of stockpiling and needing to add more space to store materials. Moreover, hiring professional sales personnel with proven track records might yield better results than simply dropping sheds in an empty lot and hoping for the best as well.
THE CARPORT PERSPECTIVE
Carports seem to follow a similar methodology, primarily because they must be built on-site—after all, you can’t exactly transport a 30 by 40 structure on the road. This illustrates a more risk-averse approach, something I’ve noticed many business owners are adopting, especially in these financially tightening times that often feel akin to an unacknowledged recession.
Our new sales location is adopting a low-risk approach. While having a shed lot with 400 units might attract more foot traffic—an idea I’ve championed long before it became trendy—I question how many can truly claim success as a mega lot within a 100-mile radius. It’s common knowledge that turning inventory three to four times is desirable for manufacturers, and that seems like a high bar if you are carrying enough inventory to be considered a mega lot. Instead, our plan is to display only three sheds. Each one will showcase a different segment of our diverse offerings, serving as a compelling display to drive sales.
You may wonder how we can thrive with just three sheds on display. Are we planning to sell additional products? The answer is a resounding YES! As an independent operator, provided that the terms of your consignment agreements don’t restrict you, there is no reason not to diversify your offerings. If you’re paying for lot rent, along with covering costs for your own website, advertisements, and banners, it makes sense to broaden your product line.
However, a potential downside is that branching out too far could distract from your core focus of shed sales, which understandably concerns suppliers. Perhaps the alternative may be opening a company-owned lot if that aligns with your expertise and the needs of the supplier.
OUR SIMPLE STRATEGY
Our approach is straightforward: a small lot with maximum visibility, three to four displays, and a range of complementary products. We plan to leverage our skills to maximize the effectiveness of social media, local service ads, and our website, ensuring that shoppers find a variety of options.
Some of these options include utility trailers from Pro Tech Trailers in Eagleville, Tennessee, Play Mor Swing Sets, and Stryker Hunting Blinds from Millersburg, Ohio. We may also consider adding additional products, such as steel buildings, post-frame constructions, gazebos, and possibly livestock options, depending on available space.
It’s important to note that sourcing these products on a consignment basis may prove challenging. Each category has its own customer acquisition approach, so we’ll need to remain flexible and ready to pivot based on customer interest. Our hope is that this strategy will become a winning recipe for 2026.
The purpose of sharing our experiences is to invite others into our thought process as we embark on 2026. I genuinely welcome discussions with anyone who may have adopted a different approach. I believe that “iron sharpens iron,” and through dialogue and examination of various ideas, we can all become better business owners, shed sellers, and community members.
Regardless of how many sheds or products we ultimately display on our lots, one thing is clear: the shed remains the common denominator in our sales lot, providing me with encouragement for the industry’s future.
