Inventory Hoarding! Lots of people want the stuff that we have, so we must be hoarding it like a dragon sitting on his pile of gold, right? Wrong! Hoarding inventory is a terrible idea for a business like ours. Inventory is essentially cash and that cash needs to always be moving. Our success comes from our ability to sell things quickly. Without doing that we would not be in business at all. Our goal is to sell everything as fast as possible. DKOldies has grown every year for over 20 years not because we hold on to our inventory, but because we figure out new ways to buy more and sell more as fast as possible. Here's how we do it: We predict how much we'll sell in the next few months and try to get that amount of inventory in. If we get in more than we can sell in the time we expected, then we need to buy less and/or lower the price. If we sell more than we thought, then we need to buy more quickly, and the prices can go up. It's a balancing act, but it's one we've gotten good at over the years and are still perfecting. So, it may look like we have mountains of games and consoles, but a lot of the stuff you see is sold and getting shipped out that day, and the rest is sold in the next few weeks. We know that tying up money and stopping growth is a real problem, and that's why we focus on making things work well and managing our inventory smartly. Our success shows how important it is to keep things moving, and make sure we can keep our customers happy and doing what we love for a long time. So, instead of hoarding, we make sure every item finds its new owner fast. Ultimately, hoarding is bad for business. No competent business would do it. It ties up money, stops growth, and doesn't make sense in the long run. If you have any questions about how we handle our inventory, let me know in the comments and I’ll answer them.
Ahhh interesting 🙌🙌
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8moSmart. Having an understanding of your operating cycle is essential for the success of any business. Now there are ways to leverage bank tech and financial instruments to extend payables, and collect quicker. For most this means more capital to do other things. It may allow for an increase in inventory. I'm a DM away, if you'd like to pick my brain. Cheers!