Most artists track merchandise casually, counting boxes in garages, scribbling sales on papers, hoping the math works out. This approach bleeds profit through gradual slippage: forgotten inventory, pricing inconsistencies, and the inability to identify which products actually generate returns versus which merely move units.

The Merchandise component acknowledges that merchandise pricing is often contextual. That same t-shirt fetches different prices at different touch-points, $25 at a live show, $20 online where comparison shopping reigns, $50 at a VIP meet-and-greet where signing adds value. Without tracking these variations, you're flying blind, potentially leaving thousands on the table through suboptimal pricing strategies.

Why the Four-Phase System Works

The system breaks merchandise management into four discrete phases, each serving a specific function:

1. Purchase Order Phase This isn't just recording what you bought, it's establishing your true cost basis. Many artists forget to factor in shipping, minimum order quantities, or bulk discounts when calculating profitability. 

2. Product Creation Phase Creating individual products for each variant (Small Blue Shirt, Medium Blue Shirt) rather than generic categories enables precision tracking. You'll discover that Medium blacks consistently outsell everything else, or that tank tops move at festivals but languish online.

3. Items Received Phase The "stock adjusted" mechanism prevents the most common merchandise disaster: selling items you don't actually have. By explicitly marking when inventory enters your possession, you maintain accurate availability across all sales channels. No more awkward refunds or rushed reorders.

4. Item Sale Phase By tracking individual sales with their specific contexts (venue, price point, date), patterns emerge. Perhaps your $35 "premium" pricing at intimate venues outperforms $25 "standard" pricing at festivals on a per-unit profit basis. Also as mentioned the price of the same item can change so assigning a default price throws your profit calculations off.

Yes, the initial setup requires attention to detail. Yes, tracking each sale point takes discipline. But this front-loaded complexity pays exponential dividends. 

Action Items

Create a Purchase

1. On your Merchandise Dashboard, click the "Create Purchase" button. A new purchase order page will open automatically.
2. Enter your purchase details at the top clearly:
   
   • Date: The order date.
   • Vendor: Select or add the supplier/vendor.
   • Payment Terms (optional): Specify any payment details if necessary.
   • Status: Initially set to "Order Created."
     

Adding Individual Items to Your Purchase

Scroll down to the Purchase Items section:

1. In the provided table under "Purchase Items," click "New" or "Click to add a row."
2. Complete these fields clearly for each product you're purchasing:
   
   • Product:
     
     • Click on this relation property.
     • Select an existing product or clearly create a new product here directly from this field.
     • Important: Create separate product entries for each variant (e.g., T-Shirt Small, T-Shirt Medium, T-Shirt Large, Blue Hoodie, Red Hoodie, etc.).
       
   • Quantity: Clearly enter the exact number of items ordered.
   • Unit (optional): Specify units clearly (e.g., piece, box, etc.).
     Unit Rate: Clearly specify the cost price per unit (this directly impacts your product cost calculations).
     
     Note on Product Variants: Always create individual products for each variant. This ensures accurate tracking of stock, pricing, and inventory levels per individual product variant.
     
     For example:
     
     • T-Shirt – White (S)
     • T-Shirt – White (M)
     • T-Shirt – White (L)

Mark Items Received / In Your Possession & Adjust Stock

1. In the "Purchase Items" table, tick the "Stock adjusted" box clearly for each product. This automatically updates inventory counts for each product in the Products database.
   

Recording Sales (Ongoing)

As sales occur:

1. Navigate to your Sales database.
2. Click "New" and fill in the sales details clearly:
   
   • Select the correct product variant sold.
   • Specify the quantity sold and the sale price per unit.
   • Enter the sale date clearly.

This automatically adjusts your stock levels, and calculates your product pricing and profitability accurately.