*
http://www.antiquetrader.com/article/behind_the_gavel_inventory_investment_perception
*<http://www.antiquetrader.com/article/behind_the_gavel_inventory_investment_perception>
I especially like this part:
"Here is an example: Let’s say your cost of goods sold for the year is
$100,000 on sales of $200,000. The average value of your inventory is
$50,000. $100,000/50,000 = 2. You turned your inventory twice for the year
and made a gross profit of $50,000 on your $50,000 investment.
Not bad.
Now, let’s say that you are holding on to some slow-moving inventory,
and the average value of your inventory goes up to $75,000. So let’s figure
the inventory turnover: $100,000/$75,000 = 1.3. You turned your inventory
1.3 times and made only $25,000 on your inventory investment. You made half
as much money at the same sales level because your inventory was not turning
as fast.
Dealers who did well this past summer were those who sold their
inventory for what the market would bear (even at a loss) and then refreshed
their inventory while buying at low prices. Dealers who did poorly were
those who held on to overvalued inventory and had no money to reinvest. The
difference between success and failure was that some dealers were willing to
see blood in the streets, even if it was their own."
I think many movie poster dealers could benefit from reading this article.
--
Bruce Hershenson and the other 28 members of the eMoviePoster.com team
P.O. Box 874
West Plains, MO 65775
Phone: 417-256-9616 (hours: Mon-Fri 9 to 5 except from 12 to 1 when we take
lunch)
our site <http://www.emovieposter.com/>
our auctions <http://www.emovieposter.com/agallery/all.html>
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