Music Product Inventory
description
Transcript of Music Product Inventory
![Page 1: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/1.jpg)
presented bypresented by
![Page 2: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/2.jpg)
When buying inventory, which of these questions are “most” important to ask?
• Can I lower my cost for a larger order? • Can I get a discount for early payment?• Can I reorder this product if I run out?• Is this a product my competition sells?• Will I have greater leverage with this supplier if I buy a lot
of their product?• Is this a “cool” product and will I gain customer credibility
for selling it?• Can I get some vendor rebates, spiffs, trips,
prizes, awards or cool T-shirts?
![Page 3: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/3.jpg)
None of them !!!
““Who ordered Who ordered this junk ?!?!?”this junk ?!?!?”
![Page 4: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/4.jpg)
“What” and “How Many” to buy depends ONLY on your answers to these
questions:
• Can I sell this product ?• Will I make a profit ? • How quick can I sell it ?• How fast will I have to
pay my vendor for it ?
![Page 5: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/5.jpg)
(1) Can I Sell This Product?
Is this product really marketable, useable and/or in demand ?
Will “your” customers want to buy this product?
Is your sales rep having a slow month and looking for a sucker?
![Page 6: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/6.jpg)
(2) Will I make a Profit? Selling Price $ 1,000 100%Cost (incl. freight) ( 600) 60%Gross Profit $ 400 40%
![Page 7: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/7.jpg)
(3) How Quick Can I Sell It?The answer: as soon as possible!! Think in
terms of 1-120 days; think twice about buying goods that will take longer than 4 to 6 months to sell.
Remember the dozen or so costs (the product cost, freight-in, insurance, rent, storage, inter-store transportation, setup, accounting, data entry & tracking, flooring & financing, property tax, breakage, security, shrink, physical inv., +1 more) that accumulate from aging inventory
$100 cost = $130 one year later!
![Page 8: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/8.jpg)
(4) Vendor Payment Terms?
You must be able to sell most of the product (if not all) “before” your vendor’s payment due date!!
Otherwise, you’ll have cash flow shortages, requiring you to either (a) borrow or invest more money, (b) string your vendors out, or (c) say “good-bye”
![Page 9: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/9.jpg)
The Objective…“ To sell it, at the highest gross profit, in
the least amount of time, and never pay
for it. ”
![Page 10: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/10.jpg)
Alan’s “Rule of Thumb”
for buying inventory
![Page 11: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/11.jpg)
Alan’s “Rule of Thumb”“ Buy the product ONLY IF you
know you can sell it in “X” days or less, where “X” is
equal to 360 days times your gross profit percent. ”
![Page 12: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/12.jpg)
STEP 1 - CALCULATE YOUR G.P. %Selling price 800$ 100%Cost of good sold 600 75%
GROSS PROFIT 200$ 25%
STEP 2 - CALCULATE THE DAYS TO SELLNo. of days in the year 360 x Gross Profit Percent (%) per above 25%
# OF DAYS TO SELL THE PRODUCT 90
STEP 3 - NOW MAKE THE DECISION:If you can sell it in 90 days or less, BUY IT ! If you can't or aren't sure, DON'T BUY IT !!
Alan’s “Rule of Thumb”
![Page 13: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/13.jpg)
Here are three takeaways from The Key to Buying Music Product Inventory presented by Alan Friedman. Bring these ideas to back to your business and see what results you generate!
Takeaway 1: The Four Important Questions: (1) Can I sell it?, (2) Will I make a profit?, (3) How quickly can I sell it?, and (4) How quickly do I have to pay for it?Takeaway 2: Choose another product or reduce the amount you buy until you get the right answers to the four questionsTakeaway 3: Always’ use Alan’s “Rule of Thumb”
Top Three Top Three TakeawaysTakeaways
![Page 14: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/14.jpg)
AnyQuestions?
![Page 15: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/15.jpg)
““Free” Consulting Free” Consulting MeetingsMeetings
Contact Jen Contact Jen outside the Idea Center outside the Idea Center entranceentrance
after this session to set up a meeting after this session to set up a meeting timetime
![Page 16: Music Product Inventory](https://reader035.fdocuments.in/reader035/viewer/2022062218/56815ccb550346895dcad756/html5/thumbnails/16.jpg)
Enjoy the Enjoy the Show!!Show!!
Catch Alan playing with PRINTZ Catch Alan playing with PRINTZ Saturday Night at the Hilton Saturday Night at the Hilton
Lobby!!Lobby!!