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More Trouble Shooting Tips – 24

Dead Money

Think of it like this; you spent $1k to stock this shelf.   This $1k is dead.  When the products move off the shelf, each purchase resuscitates the money. When the money is ‘alive’ again it can be used to purchase other products.

But as long as that stuff sits on the shelf, the money is dead.

Getting rid of those goods has to be priority, especially if they are not moving rapidly after one month.

Keeping an eye on how many you purchased, how many have sold, and the time period, allows the business to be alert to the value of the items.

If people aren’t buying the item,  have a sale and drop the price.   And keep dropping until the product is gone and that $1k is recouped.

The realities of successful businesses are often based on the 5/1 ratio

What do you think?

3 points
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Written by jaylar

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