With over 25 years of frontline experience Tom Shay is America's leading small business
management
expert. He's a "Must Have" for your next event.
Cost
of Inventory Calculator from Profits Plus
Go
to a trade show, or receive a special order offering from a vendor,
as you are trying to decide how to place an order for merchandise:
Order a smaller quantity, but pay a higher price, a shorter time
to pay for the merchandise and maybe pay a higher price for the
delivery of the merchandise.
Order with the special offering, and you receive a much longer time
to pay for the merchandise, perhaps free freight, but you have to
purchase a much larger quantity of merchandise.
Which way is more profitable for your business? Previously, you
had to perform a lot of calculations or just take a good guess.
We now provide you with a Cost of Inventory calculator.
You enter
this information:
How many you sell each month
The cost when ordering in the traditional method and in the special
order methods
The cost of freight for each of the two methods
The quantity you order with each method
How long you get before you pay for the item
The cost of money
When
using the Cost of Inventory calculator, enter this information,
click enter, and you will see the answer for each of the next eight
months. You also have the option of seeing this information in a
line chart format.As you create the initial calculated gross margin, the cost of the freight is not a component of that calculation. However, as you look at the calculations for the 60 to 240 day time period, we take a different approach. As you would have paid for the freight, and there is an anticipated difference in the freight cost of the two buying scenarios, we allow the freight to be utilized as a component of the gross margin calculation.
(Enter data in the column of cells highlighted in green)
Does it seem like you, as the owner or manager, are having to do everything yourself? The March Small Business Advisory points out ways to lessen your load; even the responsibility of hiring!
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If a person is going to sell their business, there needs to be a plan to do so. Perhaps the surprise is that there is a lot to be done before a business is offered for sale. The March Article of the Month is titled, "Game Over".
Book of the Month
What are your strengths? What are your talents? You may think you know them, but the Book of the Month, "Now, Discouver Your Strengths" by Don Clifton can assist you in getting a truthful assessment. You may even find some hidden strengths and talents.
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With over 25 years of frontline experience Tom Shay is America's leading Small Business
Management
Expert. He's a "Must Have" for your next event.
Does it seem like you, as the owner or manager, are having to do everything yourself? The March Small Business Advisory points out ways to lessen your load; even the responsibility of hiring!
People love entertainment. Is there something about your business that engages customers? Perhaps a part of the reason for growth in online and drive thru shopping is because the business does not know how to engage the customer.
Article of the Month
If a person is going to sell their business, there needs to be a plan to do so. Perhaps the surprise is that there is a lot to be done before a business is offered for sale. The March Article of the Month is titled, "Game Over".
Book of the Month
What are your strengths? What are your talents? You may think you know them, but the Book of the Month, "Now, Discouver Your Strengths" by Don Clifton can assist you in getting a truthful assessment. You may even find some hidden strengths and talents.