Shoes And Clothing Enterprises Worry About How To Turn Stock Into Cash.

Talking about

Nine of the ten dealers answered: "business is good, but cash can't be seen. It's all inventory."

Today, we will make a brief discussion on several key topics of inventory.

First, what you earn is inventory.

Some dealers may have been operating for several years.

It is more than cash, but because most dealers are mixing business finance and family finance together, the whole family eats, drinks, sleeps, and sleeps from the shops. Many people buy a house, change a car, have 2 births, earn more and earn less, they will be confused and unable to speak clearly.

But one thing is for sure. If the business is really making money and making no cash, ten cows will not keep you in business.

As the saying goes, "the business of a decapitated business is done by someone who loses money."

Chinese people have a culture of existence that does not reveal their wealth. Most people who speak this are only aware of the threat of outsiders.

Two, inventory should not be generated?

From a business point of view, in order to ensure that the customers who enter the door can pick up satisfactory products to ensure the turnover, you must ensure the fullness of the products displayed in the store. If there are too few products in the shop and the color is broken, the customers who enter the shop will go to other houses to buy.

In shoes

In the industry, every paction at a normal price will be able to offset the loss of 4 (double) inventories, and if we do not generate inventories and artificially reduce the sales we should get, it is undoubtedly a way of losing money and killing the goose that lays the golden eggs.

The key to a store's business depends on how many old customers it has. According to the survey, the ratio of enterprises retaining customers is increased by 5%, profits can be increased by 25%., and the cost of developing a new customer is 6 times that of maintaining an old customer.

No one will predict the customers' preferences and stature next door. Many times they are unable to buy, and they will hand over old customers who have been working hard for many years.

Therefore, due to the preparation of some products for customers to choose and produce a certain proportion of inventory is the characteristics of this industry, almost no way to eradicate.

Three, how much do you stock?

Suppose a certain

This year, 1 million of the total sales volume and 1 million 450 thousand of the sales volume are generated by the distributor, resulting in 150 thousand of the inventory and 350 thousand of the operating cost. How can the dealer calculate the profit in the current year? Most dealers will calculate the profit by the way of reducing the inventory cost in a single way, that is, sales (1 million 450 thousand) - operating cost (350 thousand) - product cost (850 thousand) - inventory cost (150 thousand) = (100 thousand) to be counted as the harvest this year, on the grounds that the stock does not know how much money can be sold.

In this way, it may lead to a negative profit in the year.

In fact, there is a formula to calculate how much money can be realized in inventory.

The decline in stock prices is basically based on 2580, that is, the 20% decline in the quarterly product, 50% in the two quarter, 80% in the three grade, and 100% in the four seasons.

Take the above cases as an example, the reasonable calculation method of the dealer's profit in that year is: 145 - 35 - 85 - 15X20%=22 million cash +12 ten thousand stock.

In accordance with the above calculation, no matter how many years of accumulated inventory in your warehouse, you can clearly calculate your current profit and inventory cash value.

Four, when is inventory best realized?

It is assumed that both two and 1 million people invest in 1 million yuan for business. The profit margin of a business is 30%, but the frequency of fund usage is slow. They can buy and sell once a year, that is, they can earn 300 thousand yuan a year. The profit rate of B is lower than that of a, only 20%, but the turnover rate of capital is fast, and the turnover rate is 2 times a year.

As the saying goes, "money is like water, only flow has life."

It is the right way to turn inventory into cash.

If someone can liquidate liquidable inventory at a price below 20% of the purchase price before the end of the season, he must be a master of management.