From the course: Selling into Industries: Retail and Consumer Products
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Inventory management
From the course: Selling into Industries: Retail and Consumer Products
Inventory management
- A buyer once told me, "The only good inventory is sold inventory. "Other than that, it's just a big expense." That's a true statement that impacts both the retailer and you as the supplier. Once a product gets manufactured, it now has a cost associated with it, and someone now owns that expense. As a salesperson, you're so excited with your consumer product, but you're going to learn quickly that everyone wants the least amount of inventory cost on their books. It can be a stressful subject to discuss. Here's a scenario. Your product retails for $30, the manufacturing cost per unit is $5, and you're going to be selling it to all retailers at a 50% discount, or $15 each. You've done a great job of selling it and have advance orders totaling 50,000 units. Accounts are telling you they'll reorder quickly if it sells. There's a four-week timeline to manufacturer it. Your company orders 50,000 units and an additional 20,000 for backup stock. Here's how that example will be viewed by each…
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