15 ways to get rid of old inventory:

Inventory over a year old is the killer of a jewelry store. You only have 12 months to sell it and make a profit. Any profit after a year is not really profit. Why?

Because of your investment. If you invest $100 in a ring on January 1st, 2007, you're going to LEAVE the investment itself in the case until you sell the store. Looking at keystone, that January 2007 investment of $100 should bring in $200 in sales (thus $100 in profit) every year until you retire. If it sells in December of 2007, you've made your $100 of profit. Do you take the cost of the ring out of the store or leave it and buy another item?

You buy another and THAT $100 ring should bring in another $100 in profit in 2008 and on and on we go.

If that ring is doesn't sell in 2007 or 2008, guess what? It owes you now $200 in lost profits. So if you sell this ring in December 2009 (its 3 years old now), it should sell for $400 not $200. It should give you back your investment (the original cost of $100) plus the profit of:

2007   Profit = $100
2008   Profit = $100
2009   Profit = $100
Total Profit we should have received over 3 years = $300

Therefore the ring has to sell for:

Cost:      $100

3 years of profits owed to us:  $300

Ring needs to sell for $400.

Can you double the price of a dog?

NO!

Get rid of it.

Attached below print, read and act upon

15 Ways to Get Rid of Old Inventory

David Geller

Director of Profit