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Actual for You - Creating Cash Flow with Old Inventory
IntroductionManagers have two powerful ways of improving the performance and productivity of their subordinates, which are counseling and on the job training.Counseling is the process of helping a subordinate define and resolve personal problems that effect performance or in order to develop a good attitude to work.<
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer
So you have this great idea and are convinced that you are the right person to make it work. 75% of people starting their own job are motivated by the idea of starting a new career. The other 25% is made of unfortunate victims of lay-offs or company restructuration. Those have less chance of succeeding because success is first and foremo
You need to have sufficient inventory to be profitable. However, having too much inventory is a larger problem than too little inventory.
Too much inventory ties up critical cash for your business. It can also result in more damages to your merchandise. The key is to find the right price to move your merchandise. Slow moving items take up space and cash that could be used for more profitable items.
There are times you have to adjust your pricing strategy. For example, let's assume your retail price is double your cost. In this example, you pay $10 and it retails for $20. If it is a slow mover or discontinued item, what should be the new price? I would take 20% off for 1-3 months, 50% off and then 75% off.If you have to sell at 75% off, you will be selling below cost. Cost should never be a factored in marking down an item.
I can hear you yelling now. I'm not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer
How do you normally go about non-trivial decisions?Even if you prefer to take time to do your homework and systematically clarify and prioritize all gains or costs, you can still face many grey areas, when pure logic by itself does not arrive at one convincing conclusion.It could be that your criteria for analysis are diffi
You need to have sufficient inventory to be profitable. However, having too much inventory is a larger problem than too little inventory.
Too much inventory ties up critical cash for your business. It can also result in more damages to your merchandise. The key is to find the right price to move your merchandise. Slow moving items take up space and cash that could be used for more profitable items.
There are times you have to adjust your pricing strategy. For example, let's assume your retail price is double your cost. In this example, you pay $10 and it retails for $20. If it is a slow mover or discontinued item, what should be the new price? I would take 20% off for 1-3 months, 50% off and then 75% off.If you have to sell at 75% off, you will be selling below cost. Cost should never be a factored in marking down an item.
I can hear you yelling now. I'm not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer
Small restaurants have a tremendous opportunity to showcase the unique benefits of their eating establishments, just like their larger counterparts. Your prior research reveals the type of food your restaurant specializes in and if it’s marketable in your chosen demographic.Is your cuisine ethnic, and can you possibly incorporate
There are times you have to adjust your pricing strategy. For example, let's assume your retail price is double your cost. In this example, you pay $10 and it retails for $20. If it is a slow mover or discontinued item, what should be the new price? I would take 20% off for 1-3 months, 50% off and then 75% off.If you have to sell at 75% off, you will be selling below cost. Cost should never be a factored in marking down an item.
I can hear you yelling now. I'm not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer
If you are working on a restaurant business plan, and the sales just don't seem to be adding up to what you hoped, here are some suggestions on ways you can dramatically increase the revenue you are pulling in to the business that are mostly simple to do and don’t increase your fixed costs while adding nicely to your bottom line.<
I can hear you yelling now. I'm not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer
There is a lot of talk about leadership development but very little specific leadership skill training is available. It seems like success is dependent upon surrounding yourself with the right people and hoping they have the skills necessary to do the job. Compassion often prevents us from replacing those that don’t have the skills in a
Using the above example,let's say you sold your product at 75% off. How much did you make on that item?
Your answer is probably that it was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer is that you made $5.
You took an item that was producing zero and turned it into $5 cash. You can take that cash and space and use it for a profitable item. Many times a business does not have enough cash to buy the desired quantities of the best selling products. If you take the cash from the poor sellers and use it for good sellers, you will more than make your money back.
No matter how good a buyer you are, there will be items that don't sell. The key is to realize this and react before it ties up too much cash and profit.
An added benefit of taking care of your problem inventory is increased sales. You will get customers who will shop your store on a regular basis looking for your markdowns. Many of them will buy your high gross items also. If you take care of your problem inventory on a regular basis, your markdowns dollars will be less.
Inventory is critical to your business success. The key is to take action on the slow moving and discontinued. This will make your bottom line better in the long run.
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