FittBite Episode 294: Your Money Isn’t Gone. It’s Sitting in a Warehouse as Mediums.

A brand launches a thousand units of a hoodie.

Small sells out.

Large sells out.

XL sells out.

But it has boxes upon boxes of size medium sitting in storage.

Well, you might say that's great.

They have product that's ready to sell.

They have cash that's tied up in inventory that can be turned over.

But that's a challenge.

Just because the size small, size large, size XL sold out doesn't necessarily mean the size medium will sell out.

If you roll back the time, the brand has decided that medium is going to be the safest option, so obviously they've ordered the biggest amount of medium.

The challenge is that, well, if we look at the population, if we look at the typical customer distribution, there may not be enough people who want a size medium, and if anything, there may be more people, by the data, that wanted sizes small, sizes large, sizes XL that have already sold out.

So the chances of turning over that remaining size medium is very close to zero.

This is a challenge, and this is a dilemma that a lot of startup and existing brands get into.

And some of the largest brands that you've heard of lose millions upon millions of dollars in unsold inventory due to poor sizing decisions.

So on today's episode, we're going to be looking at how you can structure your sales velocity and how you structure your order volume across different sizes so that you can maximize the chances that you're going to sell through your stock without over-ordering on sizes that aren't going to sell through and under-ordering on sizes that are going to sell through.

So how to do this? Well, that's exactly what we're going to be discussing in today's episode.

And without further ado, my name is Shadi Adada.

I'm the co-founder of Fit Design, the world's first sportswear design agency.

And over the last ten years, we have worked with literally thousands of brands, and I've done thousands of orders for these brands.

I've helped them dictate their sizing split, and I've gone through after-launch review with them to see what sizes are selling the fastest, what sizes sell the slowest, what colors sell the fastest, and ultimately also what the expectations were before launch and how that happened after launch, and if there are any patterns that are emerging between what type of brand, which region it's selling in, well, who's the core customer avatar.

And these are the findings that I want to set through in today's episode for you.

A brand launches a thousand units of a hoodie.

Small sells out.

Large sells out.

XL sells out.

But it has boxes upon boxes of size medium sitting in storage.

Well, you might say that's great.

They have product that's ready to sell.

They have cash that's tied up in inventory that can be turned over.

But that's a challenge.

Just because the size small, size large, size XL sold out doesn't necessarily mean the size medium will sell out.

If you roll back the time, the brand has decided that medium is going to be the safest option, so obviously they've ordered the biggest amount of medium.

The challenge is that, well, if we look at the population, if we look at the typical customer distribution, there may not be enough people who want a size medium, and if anything, there may be more people, by the data, that wanted sizes small, sizes large, sizes XL that have already sold out.

So the chances of turning over that remaining size medium is very close to zero.

This is a challenge, and this is a dilemma that a lot of startup and existing brands get into.

And some of the largest brands that you've heard of lose millions upon millions of dollars in unsold inventory due to poor sizing decisions.

So on today's episode, we're going to be looking at how you can structure your sales velocity and how you structure your order volume across different sizes so that you can maximize the chances that you're going to sell through your stock without over-ordering on sizes that aren't going to sell through and under-ordering on sizes that are going to sell through.

So how to do this? Well, that's exactly what we're going to be discussing in today's episode.

And without further ado, my name is Shadi Adada.

I'm the co-founder of Fit Design, the world's first sportswear design agency.

And over the last ten years, we have worked with literally thousands of brands, and I've done thousands of orders for these brands.

I've helped them dictate their sizing split, and I've gone through after-launch review with them to see what sizes are selling the fastest, what sizes sell the slowest, what colors sell the fastest, and ultimately also what the expectations were before launch and how that happened after launch, and if there are any patterns that are emerging between what type of brand, which region it's selling in, well, who's the core customer avatar.

And these are the findings that I want to set through in today's episode for you.