I’m in the process of setting a new “subscribe & save” e-commerce store for a specific product that can change cost/price fairly regularly. I’m wondering if I’m overthinking this… or thinking about it entirely wrong.
I don’t want to break any rules so, for the sake of the post, let’s call them Widgets.
Last month, I bought a pallet of Widgets that cost me $200 each. This month, the pallet of the same Widgets cost me $300 each. Next month, the Widgets might cost more… they might cost less… it’s entirely dependent on supply and demand. My customers (and this industry) understands that concept.
As I setup the store software (currently tinkering with Rails+Solidus but open to suggestions), I’m thinking that I need to track the cost of the inventory as I receive it in. And that I need to sell it in first-in-first-out order.
In other words:
- At any given time, the inventory on hand will have a cost and a price. A user will signup for the subscription which entitles them to a certain percentage off the price.
- Next month, upon renewal, we’ll bill them for the price of the next available Widget in inventory. (If the Widget’s price is equal to or less than last month’s price, we’ll process normally. If the Widget’s price is higher than last month, we’ll send an email allowing the user to skip that month.)
Anyway, my questions:
- Am I overthinking (or underthinking this)?
- Does anyone else have experience selling something similarly? What do you wish you would have known when you started?