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)
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"What's your score"? is the name of the April Small Business Advisory. This provides an introduction to our return on investment calculator. It is a great way to understand how well the investment you have in your small business is working for you.
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This is important for the kids to see what it is we do. They definitely are not going to learn about it in school. Reading the April Small Business News you will see an example from community pharmacists that emphasizes it is up to us as small business owners to introduce kids to what we do.
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While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.
If there is not something very special about your business, then the only attraction to your businessis that of a low price.
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I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.
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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.
"What's your score"? is the name of the April Small Business Advisory. This provides an introduction to our return on investment calculator. It is a great way to understand how well the investment you have in your small business is working for you.
We believe Thursday, April 25 is an important annual celebration for small businesses. While the name of the celebration has varied over the years, the focus is for us to take kids to work with us.
This is important for the kids to see what it is we do. They definitely are not going to learn about it in school. Reading the April Small Business News you will see an example from community pharmacists that emphasizes it is up to us as small business owners to introduce kids to what we do.
Article of the Month
While titled, "If not price", the April Article of the Month is asking the question about the focus of your small business in attracting and keeping customers.
If there is not something very special about your business, then the only attraction to your businessis that of a low price.
Book of the Month
"The plan as you go business plan" is the April book of the month. The author is Tim Berry who has also created software on the same topic.
I do not agree with the concept of "fill in the blank" or "create the plan as you need it" because my experience has been that you do not have as strong as a connection and understanding to your business plan unless you do it yourself and you dedicate the time to create it.