Insure Your Inventory In Case of a Disaster
If you work in direct sales, then chances are you have an inventory of different items with you. Depending on the industry that you’re in, the items can vary. While you may be great at what you do, have you ever considered how hard you and your company would be hit if you were to lose those precious items? Life is unpredictable, things happen. Unfortunate events like a fire, robbery, or even a natural disaster can destroy your inventory. Make sure to ensure the safety of your goods.
Direct sales is a big industry – about 20.5 million people in the United States alone were involved in direct sales in one form or another in 2016. It’s also quite lucrative, with over $35 billion dollars in sales within the same year, according to the Direct Selling Association. In case you do not know what direct selling is, it is the process of marketing and selling products directly to consumers away from a fixed retail location. You’re more than likely to have experienced this at some point in your life with door-to-door salespeople. It doesn’t just stop at the homes, it can occur with businesses as well. The reason why businesses employ this tactic, other than to simply make a sale, is to increase brand awareness for their own company as well as seek meaningful business relationships in the case of business to business direct sales.
Direct sales is not without risk, though. As stated before, your goods can be susceptible to robbery, natural disasters, fire, and more. In the case of a small door-to-door salesperson, this is extremely detrimental to business. Salespeople may be acting on their own accord, without the backing of a company. Therefore, they tend to be far more liable. In the case of businesses employing direct sales, they may lose significant client confidence if they are unable to provide the goods that they promise customers, due to some unforeseen occurrence depriving them of stock. With that said, insuring the inventory is a viable method to protect the seller.
Just like insuring your home or car, insuring your inventory will protect it from unforeseen circumstances that may be beyond your control. This allows you to bounce back from loss in a relatively short period of time, without suffering too much damage to your business. The type of insurance that you would get depends on the type of item that you’re offering the potential customer. If you sell perishable items such as frozen food or fruits, you can protect yourself from loss like a failure of your cooling truck. If you deal with particularly fragile items such as China plates, then you can insure against possible damage, whether it’s caused by you or someone else.You can protect your item from accidental damage by the consumer before they even make the purchase, provided that they don’t.
When it comes to business, insurance can be a godsend. When it comes to direct selling companies, being insured can make the difference between success and failure.