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should I buy it?

I like this product –. should I buy it?. presented by. Alan Friedman, CPA. Friedman, Kannenberg & Company, P.C. When you buy inventory, which one(s) of the following questions are “ most ” important to ask yourself?. Can I lower my cost for a larger order?

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should I buy it?

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  1. I like this product – should I buy it? presented by Alan Friedman, CPA Friedman, Kannenberg & Company, P.C.

  2. When you buy inventory, which one(s) of the following questions are “most” important to ask yourself? • 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?

  3. Who ordered this junk?!?!?!

  4. “What” and “How Many” you buy depends ONLYon your answers to these 4 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 ?

  5. (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?

  6. (2) Will I Make a Profit? • Selling Price $ 1,000 100% • Cost (incl. freight) ( 600) 60% • Gross Profit $ 40040%

  7. (3) How Quick Can I Sell It? • The answer…as soon as possible!! Think in terms of 1-120 days (not 6+ months to sell) • Remember “all” costs (such as 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.) that accumulate from aging inventory Did you know a $100 cost item becomes $130 cost one year later??!!!!!

  8. (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” !!

  9. “ To sell it, at the highest gross profit, in the least amount of time, and never pay for it. ”

  10. Alan’sfor buying inventory

  11. 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 daystimes your gross profit percent. ”

  12. Alan’s “Rule of Thumb”

  13. Top Three Takeaways Here are three takeaways from I Like This Product – Should I Buy It? presented by Alan Friedman. Bring these ideas 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 questions Takeaway 3: Always use Alan’s “Rule of Thumb”

  14. “Free” Consulting Meetings Contact Jen outside the Idea Center entrance after this session to set up a meeting time

  15. Enjoy the Show!!

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