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
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)
Press this button to load test data -->
1
2
Selling price
of product
3
4
Cost of the product purchased in traditional manner:
5
Cost of the
product
6
Cost of freight
per item
7
Landed cost of the product purchased
in traditional manner
8
Number of
days to pay invoice in traditional manner
9
10
Initial gross margin of the product
purchased in traditional manner
11
12
Cost of the product purchased in drop ship or special manner:
13
Cost of the
product
14
Cost of freight
per item
15
Landed cost of the product purchased
in drop ship or special manner
16
Number of
days to pay invoice in drop ship or special manner
17
18
Initial gross margin of the product
purchased in drop ship or special manner
19
20
Quantity traditionally
purchased
21
22
Quantity ordered
for drop ship or special manner
23
24
Average quantity
sold per month
25
26
Current cost
of money borrowed (Annual interest rate)
Detailed Analysis
39
Quantity on shelf 60 days after invoice
- traditional
40
60 days after invoice, cost of product
on shelf purchased traditional
41
60 days after invoice, new gross margin
of product purchased traditional
42
60 days after invoice, change in gross
margin on product purchased traditional
43
60 days after invoice, lost profit
on remaining product purchased traditional
44
Quantity on shelf 60 days after invoice
- drop ship or special manner
45
60 days after invoice, cost of product
on shelf purchased drop ship or special manner
46
60 days after invoice, new gross margin
for product purchased drop ship or special manner
47
60 days after invoice, change in gross
margin on product purchased drop ship or special manner
48
60 days after invoice, lost profit
on remaining product purchased drop ship or special manner
50
Quantity on shelf 90 days after invoice
- traditional
51
90 days after invoice, cost of product
on shelf purchased traditional
52
90 days after invoice, new gross margin
of product purchased traditional
53
90 days after invoice, change in gross
margin on product purchased traditional
54
90 days after invoice, lost profit
on remaining product purchased traditional
55
Quantity on shelf 90 days after invoice
- drop ship or special manner
56
90 days after invoice, cost of product
on shelf purchased drop ship or special manner
57
90 days after invoice, new gross margin
of product purchased drop ship or special manner
58
90 days after invoice, change in gross
margin on product purchased drop ship or special manner
59
90 days after invoice, lost profit
on remaining product purchased drop ship or special manner
61
Quantity on shelf 120 days after invoice
- traditional
62
120 days after invoice, cost of product
on shelf purchased traditional
63
120 days after invoice, new gross
margin of product purchased traditional
64
120 days after invoice, change in
gross margin on product purchased traditional
65
120 days after invoice, lost profit
on remaining product purchased traditional
66
Quantity on shelf 120 days after invoice
- drop ship or special manner
67
120 days after invoice, cost of product
on shelf purchased drop ship or special manner
68
120 days after invoice, new gross
margin of product purchased drop ship or special manner
69
120 days after invoice, change in
gross margin on product purchased drop ship or special manner
70
120 days after invoice, lost profit
on remaining product purchased drop ship or special manner
72
Quantity on shelf 150 days after invoice
- traditional
73
150 days after invoice, cost of product
on shelf purchased traditional
74
150 days after invoice, new gross
margin of product purchased traditional
75
150 days after invoice, change in
gross margin on product purchased traditional
76
150 days after invoice, lost profit
on remaining product purchased traditional
77
Quantity on shelf 150 days after invoice
- drop ship or special manner
78
150 days after invoice, cost of product
on shelf purchased drop ship or special manner
79
150 days after invoice, new gross
margin of product purchased drop ship or special manner
80
150 days after invoice, change in
gross margin on product purchased drop ship or special manner
81
150 days after invoice, lost profit
on remaining product purchased drop ship or special manner
83
Quantity on shelf 180 days after invoice
- traditional
84
180 days after invoice, cost of product
on shelf purchased traditional
85
180 days after invoice, new gross
margin of product purchased traditional
86
180 days after invoice, change in
gross margin on product purchased traditional
87
180 days after invoice, lost profit
on remaining product purchased traditional
88
Quantity on shelf 180 days after invoice
- drop ship or special manner
89
180 days after invoice, cost of product
on shelf purchased drop ship or special manner
90
180 days after invoice, new gross
margin of product purchased drop ship or special manner
91
180 days after invoice, change in
gross margin on product purchased drop ship or special manner
92
180 days after invoice, lost profit
on remaining product purchased drop ship or special manner
94
Quantity on shelf 210 days after invoice
- traditional
95
210 days after invoice, cost of product
on shelf purchased traditional
96
210 days after invoice, new gross
margin of product purchased traditional
97
210 days after invoice, change in
gross margin on product purchased traditional
98
210 days after invoice, lost profit
on remaining product purchased traditional
99
Quantity on shelf 210 days after invoice
- drop ship or special manner
100
210 days after invoice, cost of product
on shelf purchased drop ship or special manner
101
210 days after invoice, new gross
margin of product purchased drop ship or special manner
102
210 days after invoice, change in
gross margin on product purchased drop ship or special manner
103
210 days after invoice, lost profit
on remaining product purchased drop ship or special manner
105
Quantity on shelf 240 days after invoice
- traditional
106
240 days after invoice, cost of product
on shelf purchased traditional
107
240 days after invoice, new gross
margin of product purchased traditional
108
240 days after invoice, change in
gross margin on product purchased traditional
109
240 days after invoice, lost profit
on remaining product purchased traditional
110
Quantity on shelf 240 days after invoice
- drop ship or special manner
111
240 days after invoice, cost of product
on shelf purchased drop ship or special manner
112
240 days after invoice, new gross
margin of product purchased drop ship or special manner
113
240 days after invoice, change in
gross margin on product purchased drop ship or special manner
114
240 days after invoice, lost profit
on remaining product purchased drop ship or special manner