How do I review a plumbing company’s parts inventory before buying?

Plumbing parts live in many places: the shop, the shelves, the vans and sometimes a storage unit. Ask for a list of all locations, then walk each one. Look for dusty items, obsolete fittings, open boxes and special-order parts bought for a job that never happened.

Sort what you find. Fast-moving common parts are different from rarely used stock that has sat on a shelf for ages. Ask how the seller decides what to reorder and who tracks it. A tidy system suggests the stock is under control, while a messy one raises doubts about the figure in the books.

Compare the count with supplier invoices and the inventory number in the financial statements. Ask your accountant how the stock is valued and whether old stock has been written down. Find out whether any stock is owned by a supplier, on credit or pledged to a lender. Finally, agree in the purchase agreement how the closing count will work and how differences are handled. Ask whether returns to suppliers are common and whether restocking charges apply, since that shapes how much of the slow stock can really be recovered. Take photographs of any shelves you doubt, and keep your notes dated.

Key takeaways

• Count shop, shelf and van stock, not just the main storeroom.
• Separate fast-moving parts from obsolete or special-order items.
• Agree in writing how a closing count and differences are handled.