Out of Order or Good Business Sense?

[hayfield]

In the old days a new business paid cash to their suppliers to build up a business relationship which then would allow opening of an account settled at the end of the month.

 

Why do some people expect others to fund their businesses, especially when they do not invest in them themselves? 

 

This replacement stock value is a bit of a red herring. Simply you buy an item put your mark up on them and hopefully sell it for full price

 

As I said energy companies are very quick to increase prices, but so slow to reduce them. 

[fezza]

One of the problems is that some retailers don't realise that you make money through actually selling. We were realistic about talking a hit on some margins if stuff didn't sell.

 

Goods sitting on shelves cost money - trade is about keeping stock moving. Some model shops have the same stock for years. They often resemble museums and I cannot understand how they make money. 

[Andy Hayter]

Exactly Fezza

As was taught to me:  with the exception of some fine wines, stock does not improve with age.

[Jol Wilkinson]

3 hours ago, Andy Hayter said:

Exactly Fezza

As was taught to me:  with the exception of some fine wines, stock does not improve with age.

Some stock increases in value with age, for example the pre-owned D&S kits sold on Ebay.  If marketed "properly" someone will usually pay too much for somethings.

[40F]

When a wholesaler notifies a shop of a price  increase from a certain date, it means on ALL stock from that source. It does not mean that any stock supplied to the shop that was is stock BEFORE the price increase would be supplied at the old price, and any new stock supplied at the new and two separate invoices issued. Most sensible retailers will stock at the old wholesale price prior to the increase and sell at the new price. Standard business practice.

Edited January 23, 2021 by 40F

[Steamport Southport]

7 hours ago, fezza said:

One of the problems is that some retailers don't realise that you make money through actually selling. We were realistic about talking a hit on some margins if stuff didn't sell.

 

Goods sitting on shelves cost money - trade is about keeping stock moving. Some model shops have the same stock for years. They often resemble museums and I cannot understand how they make money. 

 

I take it you never visited the old Hatton's on Smithdown Road.

 

It looked like Arkwrights from Open All Hours, but he was sitting on a goldmine. 

 

https://www.flickr.com/photos/52457887@N02/10958462923

[fezza]

I know the new Hattons are a very good example of how you make money by keeping stock moving. They also have excellent customer service. 

 

[cessna152towser]

On 23/01/2021 at 23:28, Steamport Southport said:

I take it you never visited the old Hatton's on Smithdown Road.

 

It looked like Arkwrights from Open All Hours, but he was sitting on a goldmine. 

Fondly remembered from several visits in the 1970s.    

When I lived in the Glasgow area and Glasgow-Preston was first electrified in 1974 I recall buying a £3 day return from Glasgow to Liverpool and returning with a big cardboard box full of Hornby-Dublo, from Hattons.       Sadly I promptly sold most of it on at cost to my Glasgow clubmates.