Tags |
|
|
Links |
|
|
Casual Articles - The Chess Sets Business - How Much Inventory to Hold for an Online Retailer of Chess Sets?
How To Get Started With Your First Invention
So, a little light bulb inside you head has lit up and you are struck with the idea that you invented something. You are not sure yet how practical your idea is at this time, but something tells you that this might be the Big break you were looking for. What you do next and how you approach your next steps is extremely important and will either lead you on to glory or will doom your undertaking. The steps that I will outline a little later might seem unnecessary; however I want to assure you that in the end you will be happy that you took my advice.Before we proceed with the discussion, I would like to offer a few words
India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.So, a little light bulb inside you head has lit up and you are struck with the idea that you invented something. You are not sure yet how practical your idea is at this time, but something tells you that this might be the Big break you were looking for. What you do next and how you approach your next steps is extremely important and will either lead you on to glory or will doom your undertaking. The steps that I will outline a little later might seem unnecessary; however I want to assure you that in the end you will be happy that you took my advice.Before we proceed with the discussion, I would like to offer a few words
Intelligent Stocking
Clearly some items sell
An Internet Marketer's Guide To Finding a Virtual Assistant
So you have launched a great site with an awesome product/idea. You are generating new sales all day, every day. You have people lined up to JV with you, your phones ringing off the hook, and you don’t know when the last time you slept a full 8 hours was. Congratulations and welcome to the world of a successful internet marketer! You’ve reached a plateau that most internet marketing newbies only dream of. You are on your way to guru status.But what do you do next? Your email box is full, your brain is storming with ideas, the programmer needs your help with the next project, and you have 10 voicemails to return. It’s becoming
Approaching the point of a mature business brings decisions of policy that are best not left to chance. Various factors are involved in deciding how much stock to hold. Along with a gut feel these should lead to a policy decision so that the purchase of inventory for an online company doesn't end up like the tail wagging the dog, overshadowing the profit business model. We will take the example of retailing chess sets and other chess products in analysing the factors in coming to the right decision.So you have launched a great site with an awesome product/idea. You are generating new sales all day, every day. You have people lined up to JV with you, your phones ringing off the hook, and you don’t know when the last time you slept a full 8 hours was. Congratulations and welcome to the world of a successful internet marketer! You’ve reached a plateau that most internet marketing newbies only dream of. You are on your way to guru status.But what do you do next? Your email box is full, your brain is storming with ideas, the programmer needs your help with the next project, and you have 10 voicemails to return. It’s becoming
The Range
If a large range of chess products are held, such as with Chess Baron in the US and UK, how much of each line should be held? Clearly if an eCommerce company such as this had 20 different lines, the solution is simple, and the ratio of stock value to total retail sales looks pleasing to any bank manager, perhaps around 10%. In the above example, the retailer runs with a fairly large inventory compared to many in the industry, almost 200 lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but giants of the industry such as WholesaleChess would hold an inventory value of $200K. The largest chess retailer - ChessUSA also has a store in New York and holds a minimum of $300K in stock at any one time.
Where it comes from
If the chess goods come from a domestic source, the stock holding can be reduced whilst keeping in touch with stock levels at the supplier. Buying from wholesalers who have gone through the pain of buying from China or India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.
Intelligent Stocking
Clearly some items sell
Advantages of Buying a Franchise
One of the main advantages of buying a franchise is that you don’t have to spend a lot of effort introducing your product or service to the public. This alone can save you a lot of money in promoting your product to the public. People already know about the brand and as long as you have purchased a successful franchise, they will not care much about who the owner or operator of the franchise business. This is to say buying a franchise is almost like buying customers themselves.Another advantage of purchasing a franchise is that you save a lot of time and heartache learning this the hard ways as practices and procedures would
range of chess products are held, such as with Chess Baron in the US and UK, how much of each line should be held? Clearly if an eCommerce company such as this had 20 different lines, the solution is simple, and the ratio of stock value to total retail sales looks pleasing to any bank manager, perhaps around 10%. In the above example, the retailer runs with a fairly large inventory compared to many in the industry, almost 200 lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but giants of the industry such as WholesaleChess would hold an inventory value of $200K. The largest chess retailer - ChessUSA also has a store in New York and holds a minimum of $300K in stock at any one time.One of the main advantages of buying a franchise is that you don’t have to spend a lot of effort introducing your product or service to the public. This alone can save you a lot of money in promoting your product to the public. People already know about the brand and as long as you have purchased a successful franchise, they will not care much about who the owner or operator of the franchise business. This is to say buying a franchise is almost like buying customers themselves.Another advantage of purchasing a franchise is that you save a lot of time and heartache learning this the hard ways as practices and procedures would
Where it comes from
If the chess goods come from a domestic source, the stock holding can be reduced whilst keeping in touch with stock levels at the supplier. Buying from wholesalers who have gone through the pain of buying from China or India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.
Intelligent Stocking
Clearly some items sell
Building Your Own Purpose Pod Of Powerful People
One of the most common complaints or issues I hear from my coaching clients is that they do not have like-minded people around them who they can use for support in living on purpose.It can be quite a challenge to try to live a life that appears to run crosscurrents with the flow of our culture. However, a growing number of people are awakening to the realization that our Great American Dream of doing more and more to acquire more stuff is really a nightmare.Perhaps, the most clearly identified groups of people interested in living more meaningful and fulfilling lives have been identified by Paul H. Ray, Ph.D., executi
tal of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but giants of the industry such as WholesaleChess would hold an inventory value of $200K. The largest chess retailer - ChessUSA also has a store in New York and holds a minimum of $300K in stock at any one time.One of the most common complaints or issues I hear from my coaching clients is that they do not have like-minded people around them who they can use for support in living on purpose.It can be quite a challenge to try to live a life that appears to run crosscurrents with the flow of our culture. However, a growing number of people are awakening to the realization that our Great American Dream of doing more and more to acquire more stuff is really a nightmare.Perhaps, the most clearly identified groups of people interested in living more meaningful and fulfilling lives have been identified by Paul H. Ray, Ph.D., executi
Where it comes from
If the chess goods come from a domestic source, the stock holding can be reduced whilst keeping in touch with stock levels at the supplier. Buying from wholesalers who have gone through the pain of buying from China or India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.
Intelligent Stocking
Clearly some items sell
Should You Allow People To Use Your Freebies
Should you allow people to use your website and promotional freebies to promote traffic for themselves? Let’s get straight to the point. The answer is yes, unequivocally, yes. Why? Simple, the answer is traffic which can equal money. I don’t understand why anyone would want to keep a free brand all to themselves, especially if it is actually branded. By this I mean the product shows an undeniable reference to you, your site and other products you are promoting. If you don’t understand viral marketing then you probably won’t make it in any industry, Internet or not.The reasons to allow anything thing you have that is br
Stores such as ChessBaron hold somewhere in the region of $60K in stock, but giants of the industry such as WholesaleChess would hold an inventory value of $200K. The largest chess retailer - ChessUSA also has a store in New York and holds a minimum of $300K in stock at any one time.Should you allow people to use your website and promotional freebies to promote traffic for themselves? Let’s get straight to the point. The answer is yes, unequivocally, yes. Why? Simple, the answer is traffic which can equal money. I don’t understand why anyone would want to keep a free brand all to themselves, especially if it is actually branded. By this I mean the product shows an undeniable reference to you, your site and other products you are promoting. If you don’t understand viral marketing then you probably won’t make it in any industry, Internet or not.The reasons to allow anything thing you have that is br
Where it comes from
If the chess goods come from a domestic source, the stock holding can be reduced whilst keeping in touch with stock levels at the supplier. Buying from wholesalers who have gone through the pain of buying from China or India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.
Intelligent Stocking
Clearly some items sell
Grab Attention With Case Studies
To really grab attention with your marketing, you need to make your readers identify with your message. A powerful way to do this is with a case study.A case study is essentially a customer success story. It works because, if done properly, your readers will identify with your customer, recognize their own problem and see how you can solve that problem.Case studies follow the same general format:1. Introduce your customer. Highlight all they ways they resemble your typical customer. You want the readers to see themselves in this description.2. Describe their problem. Detail all the ways they tried, and fa
India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.To really grab attention with your marketing, you need to make your readers identify with your message. A powerful way to do this is with a case study.A case study is essentially a customer success story. It works because, if done properly, your readers will identify with your customer, recognize their own problem and see how you can solve that problem.Case studies follow the same general format:1. Introduce your customer. Highlight all they ways they resemble your typical customer. You want the readers to see themselves in this description.2. Describe their problem. Detail all the ways they tried, and fa
Intelligent Stocking
Clearly some items sell better than others. With our example, having a wide range is part of the store's marketing strategy. ChessBaron holds so mnay lines that generally anyone that wants to buy chess sets can buy from them, they'll find something that is appropriate. Holding just a few of the slower selling chess sets and marking them out of stock when sold instead of rushing to get them in to the order about to ship from India (for example) means that the stock level is better controlled. The converse obviously applies to the faster selling lines. Some lines ARE purchased from domestic sources, - these could be drop shipped instead of held as stock if that facility exists. Smaller margin, true, but no cash tied up in expensive stock. Making sure the manufacturer follows through with replacements for faulty chess pieces, which would otherwise render the entire chess set useless will reduce the need for ordering some sets, whilst simultaneously making the manufacturer feel the pain of blemishes and lax quality control.
Comfort Level
When the business starts, there is some need for juggling stock to fill orders as replacements or free upgrades, or just suggested alternatives. There is little cash and orders for chess sets from India are inflexible and slow. This means constantly being on the phone to the customer - 'Sorry sir, we've run out of the Carved Napolean Chess set (well, we only had one, and it was sold three weeks ago), but can I recommend the Chamfered base staunton chess set, which you could have for the same price...?'- sorting out endless problems because of stock levels that are too low. Having the chess sets in stock, being able to lift one of twenty off the shelf and being able to fill the order easily means time allowed for further selling or just sanity of life. So some inventory level is required when it comes to running an active business, even if slick consultants may urge a minimal stock level ordering small shipments from India with double wrapping and double stress.
Balancing these factors leads to the conclusion that significant chess stock is required, whilst minimising inventory levels by intelligent stocking and supplier or
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/50704/casualarticles-The-Chess-Sets-Business--How-Much-Inventory-to-Hold-for-an-Online-Retailer-of-Chess-Sets.html">The Chess Sets Business - How Much Inventory to Hold for an Online Retailer of Chess Sets?</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/50704/casualarticles-The-Chess-Sets-Business--How-Much-Inventory-to-Hold-for-an-Online-Retailer-of-Chess-Sets.html]The Chess Sets Business - How Much Inventory to Hold for an Online Retailer of Chess Sets?[/url]
Related Articles:
Effective Business Cards for Small Business Owners
Bookmark it:
|