|
Why are Stocking Plans a far better way to sell Sterling than buying it based on terms price etc?? Its pretty simple - when you buy Sterling the supplier gets paid first when you sell on a stocking plan you the owner gets paid first and . . . The difference in the math is actually quite brutal! and will affect your income and your store's resale value drastically! Buying on discounts and/or terms might feel the same and lets face it who doesn't like owning things outright, but the math is suicidal for anyone who wants to make any real money in a retail store. When you buy directly on discounts or on extended terms 100% of your first sales, the easy profit, goes totally to recover the money you paid the supplier . . . most owners dont look at it this way and that's a death sentence or at least a life sentence of low personal earnings because thats how it actually is. . . Then your next sales go to pay your store's expenses! and these are rising every month and they must be paid so great now that decent stock is gone and you the owner still hasn't made anything . . zero! The problem is it feels the same & we are busy . . . Deposits are still going into the bank and the bills are being paid so it all feels like its working but hey its hard for you the owner, the brains behind the business, to save anything, and hey we are all nice people so we quietly think there "must be something wrong with us" . . . nope! Its not you, its the math and you can't fight bad math So now you have about 30% of that order left, its the slow moving things or the things that just wont sell thats where you have to make all your money . . . but 4-6 months have gone by and you have to fill the display and guess what? The cycle "where you make your money last" starts again 1- the supplier gets paid, 2- the store expenses get paid & 3- your money is tied up in bad stock and you need to restock and fill the display & it all starts again. You can't work hard enough to break this cycle! I created my online stocking plan app so owners can pay me after they sell and have all their profit upfront! Makes for happier, long term customers I find!
Steve 37 years a maker and wholesaler of Sterling & had a retail store before |
