How We Calculate Candle Cost of Goods with Inventora

hello everyone it's chat with Ignite your craft people ask us all the time how we track our materials how we build our recipes and how we get our cost of goods in this video I'm going to go over inventor which is a great way to solve all of these we've used inventor since we started making candles it really has been absolutely fantastic so I'm super excited to go over this and kind of show you how it works all right let's take a look at inventor we are going to be using the web based version they do also offer an app um I have used it a few times but by default I just always use the web version so if you will go to invent.com you can see all of the features that they offer we're going to go ahead and hit the login page uh where you're presented to sign in or sign up uh in this case we're going to go ahead and log in and then we do have a lot of material um a lot of information in general in here cuz we've been using this since we started making candles in this video we are going to go over the basics of inventur so we're going to add a material we'll take a look at adding a recipe or a product um we'll do purchase and we'll do a production um so you can kind of see all the features that are really excellent for tracking inventory and all of your production uh inventor does have a lot of features that are amazing for the business side of everything as well um once you get to that point you'll definitely want to look through that they offer some great tutorials through their YouTube all right so let's add our first material we're going to hit the add material button and then it will pop up a screen here for us to enter our information you'll notice that some of these boxes have a little red dot next to them that means that they are required for you to build the material so our first box here is to name the material for this instance I'm going to use a fragrance oil uh it's one that we have coming so I'm going to go ahead and type in that name uh in our next box here the material type is going to be Source from supplier most likely um there are some other options here that you can go ahead and check if that suits what you're building as far as the material the next box down is the current stock level this is another required field uh we don't have the product yet so I'm going to go ahead and put this in as zero and we'll add a purchase order later to fill in all of the information here one thing to note too when you're entering materials is what type of material it is in this case we're doing fragrance oil so we're going to go ahead and put that in in ounces but you can see here you have all of these options to put in as far as the type goes and then our next box down is our minimum stock level so this is inventory tracking alert uh that will let you know if your material is getting low so you can see here that we have this twist top that is out of stock so it has turned red if that had a minimum on it and say you set the minimum at five this here would change to red when you have five pieces left in stock that way you kind of have an alert that you need to order the material for the next box down uh the cost we are going to do um an an order so we don't know the cost at this point so I'm going to put in zero you do also have the option to hit this calculate button uh where you can put in the details I'm going to put in um an order so you'll kind of see how that works and then it will automatically build this cost for us when we put that in the next box down here is supplier name in this case these are coming from candle science and then here is the category drop down just build them as you go now if I wanted to put in a let's say a wooden lid instead of just a lid I could create a category that's wooden lid so you just type in the category you want and hit create uh in this case I've got fragrance oil built so I'm just going to drop down and select fragrance oil uh we don't have these details um you can certainly enter that information if you have it you can do a picture some notes and then they have an advanced go ahead and just hit save because I've entered all the information that I need for this material all right now we have our first material I'm going to go ahead and just click back to the material screen so there are a few features here you can search so if I just want to search by Wick uh you can type that in you can search by like a color that may be in your material name uh it's an excellent way to find something super quick also have the option to filter by the category U that you create um for that when you add them you can sort them by supplier or any of these here you just click on them and it will allow you to sort those all right so let's take a look at the purchases screen uh this is where we're going to track all of our orders so you're going to hit the add Supply order here in the top right and then this window is going to pop up where you're going to enter all of the details in our first box here we're going to enter the supplier that we ordered from if you're adding a new supplier you will simply type in the name so I'm going to do Midwest candle Co and then you would just hit create and then it will create that supplier for you in the background um and it will then always live in this list so for this case I'm going to go with candle in our next box here we have the status of the order you have placed the order you can hit the placed status and then go ahead and enter your materials and your cost based on the invoice that you have and then you would come back later and Mark it as received all right let's take a look at adding our first material to our order so we're going to click in the add item here it's going to drop down all of your materials that you have in the system you can scroll through and click on it or you can start typing and then it will generate a list based on what you entering so in this case we have the Harvest Moon that we're going to receive this comes in 16 o bottle is what we ordered so I'm going to enter that here for the size the unit price is what you're going to pull from your invoice or from your order and this case it's 3231 and then we did just order one bottle so we're just going to enter one here if you ordered multiple you'll just do multiples of however many you ordered if you do have questions on what these categories are you can hover over the little I here and it will give you a brief description of what that uh section means if you do need to enter a lot number you can do that here or you can come back and add that later if you need to as well let's say you received your order and you have a material in your order that you have not yet entered into your material screen we are going to add the material right from this screen you can just hit the add another item button and we're going to enter an lx12 Wick and you'll see that I don't have this in my material screen so just going to hit this to create it it does default two pieces so you will want to make sure that you change this based on what you're ordering uh in this case we're doing Wix so it would be in pieces and we ordered a 12-piece bag so I'm going to enter 12 and then I just did one uh bag of these and the cost on that was $187 all right now that we have our materials entered um from our invoice or the order we're going to go down here if you had any discounts you want to make sure you put those in there's tax you will enter that there and then shipping you will enter into this section um I'm just going to put $10 in U for example so we have a total here of 4418 between our materials and our shipping one amazing thing about inventor is it does Factor your shipping into your materials so it will always put the shipping for that order into the materials that you ordered for that so it's not something that you have to add in extra when you're creating your recipes once we're done here you're just going to click on Save and then it will populate this into your list if you do need to make any changes you will just come up here and hit edit Supply order and it will bring the screen back uh so that you can make any changes if you need to now that we've entered our supply order let's take a look at our material and show how it updated here you can see we have our Harvest Moon that we just ordered you can see here now that it shows we have 16 ounces in stock and that we received that it shows you all the details here on the order as well you can click through these things to kind of show you the details can also get to it from your order so if you go to purchases and you click on the order you can also link right to the product from those orders and see that detail there now that we have entered our materials and received our materials let's build our product to add a product you're going to go to the product screen and then click on ADD product it'll pop up our window here we need to name this in this case I'm going to go with a golden moon on the product type drop down you're going to select made by me or if it's sourced where a product bundle you'll do that in this case it's made by me our current stock level is zero because we're going to enter a production run after we create the product the minimum stock again is something that you can determine uh based on your business um in this case I'm going to put three because I don't want to ever have less than three in the production section our batch size is going to be one candle we will enter multiple candles in a production run once we do that but for our base recipe we want that to just be one in this case we're going to enter our wax first we're using 464 it's going to enter it based on your material type when you've built it since we buy it in pounds it's going to be in pounds by default we want to change that to the amount that we're actually using for our recipe we're going to pull up our trusty calculator and here I've got this all broken down so I know that my wax amount is going to be 99.1 so I'm going to change this to 9.1 and then change this to ounces because we're using ounces versus pounds our next material is going to be the oil in this case we're using Harvest Moon which is 675 for this recipe so we're going to type in Harvest Moon we'll change this to 675 this is an ounces so that is correct for this recipe we have a second oil so we'll add that in we can see here that that is 225 so we'll go here and this is the Japanese cherry blossom at 225 again the ounces is correct all right our next material is going to be our vessel in this case we're doing this is a 10 oz uh we use the Libby all right and then we need our Wick so I'm going to put in the wick material which is a cd18 we have a wick sticker that goes on these uh we also do a lid on these so I'm going to put in my lid medium black lids and then we also put on a custom warning label so I'm going to find that here and then we are all set what I love about inventor is once you have your recipe built it gives you the cost breakdown per material and then it gives you the total which is super fantastic to know where your cost is at what material within the product as with the other materials get a drop- down category for your products as as well in this case we do a 10 o glass so I'm going to put that in you can enter this information if you need I'm going to put it in the price of 26 cuz that's what we sell these at and then these would be uh 13 for wholesale if you want to you can add a photo you can add notes or any additional options now that we've created this I'm just going to hit save and let the product build in the background now that we are ready to do a production run let's take a look at how that process works on the left side of the screen you'll hit production and then you'll be brought to this screen where it will show all of your previous batches and then you can also create new ones so we'll hit new production run and we're going to give this a name I put our name in based on the production date that we do we're making inventory to stock you could also do to fill an order in this section here you're going to get a drop down of all of the products that are in your system again you can search for a specific product so I'm going to search Golden Moon in this box here we want to enter the amount that we are going to produce in this case we're going to do a batch of six if you produced any additional items in the batch you would just hit add another item and then find that in your list of products if you want to assign this to someone you can you can leave it unassigned I'll assign it to myself since I'm processing it and then we are going to show that this was produced on 61 and if you want to do any notes you can put those in here once you've got that you'll hit save and then it's going to generate out here as a plan once you've got your production completed you can come into this screen here we're going to hit start production and then we've already completed this so we'll just hit complete run it gives you a detailed screen here of your inventory levels that are changing we'll hit complete and then it's processed and that is completed so it's gone through all of these stages here and is now in your completed category and then if you want to go to products and then we'll search for our Golden Moon you can see here now that we show that there are six pieces in stock our cost and all of that our history here now shows that we created six and there will also be a batch of six in the history so that covers the basics in Inventor that are fantastic you get to track your materials your purchases you get to run production there are many other features that inventor offers that we did not cover such as sales you've got reports you can do all of this information um the business side it's fantastic um you can also see here in a settings menu where you can really tailor this to what you would like it to be you can see your Integrations to online shops if you have those go in and change how your numbering works we can't recommend it enough if you would like to try it um our affiliate link is below you can click on that and sign up for a free account and then you can upgrade as needed for your business needs as a reminder if you're new to candl making our candl making and our wholesale blueprint courses are available to assist thanks for watching please subscribe to our Channel where we talk about all things candles comment below if you have any questions at all

Channel: Ignite Your Craft

Views: 194

Keywords: candle making, candle business, inventora, inventory system, how to run a small business, candle wholesale

Id: p7VEiJM3wMo

Length: 13min 59sec (839 seconds)

Published: Wed Jun 19 2024