A good shed sales strategy must be constantly evolving. And after many years away from direct sales, I decided to step back in.
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 we don’t have current experience in to share experiences that mirror those 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 our product’s end users. As we embark on this renewed journey, I’d like to share our unique approach to returning to 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 in Shed Sales
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 our customers’ needs but also meet their durability requests.
Wholesale vs. Consignment
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
- delivery logistics
- 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?
What I’ve learned through the Shed Sales Industry Leaders
As the saying goes, “the knee bone is connected to the leg bone,” and so on. 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—a model we find attractive as we consider which products to carry.
Inventory Considerations
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 to an effective digital marketing strategy, or to other areas of the business that need 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.
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.
A Lower-Risk Shed Sales Approach
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!
Expanding Your Offerings
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 lot rent and 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 is to open a company-owned lot if that aligns with your expertise and the supplier’s needs.
Our Simple Shed Sales Strategy
Our approach is straightforward:
- A small lot with maximum visibility
- Three to four displays
- A range of complementary products
And a 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
- Play Mor Swing Sets
- Stryker Hunting Blinds
- Steel buildings
- Post-frame construction
- Gazebos
- Livestock options
- And more, depending on available space.
Planning Your Shed Sales Strategy
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 you’ll need to remain flexible and ready to pivot based on customer interest. We expect this strategy to be 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 welcome discussions with anyone who has taken 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.
