Mar 21, 2014

Create More Cash Without Raising Sales, Prices

Too often, we antique dealers find ourselves in the position of being “inventory rich and cash poor.” We have a lot of money tied up in inventory but not enough cash to pay our bills and write ourselves a regular paycheck.

While sales have their place and time in business, if overdone, discounts may lead to disaster.

We try various tactics to squeeze more cash from our inventory: We mark-down items, advertise a “big sale,” raise prices when we can and set up booths at antique shows and/or flea markets to increase our exposure. Sometimes, when we’re hard-pressed to pay the bills and need instant cash, we sell items at deep discounts to other dealers.

Squeezing more cash from inventory isn’t as simple as “selling more.” All retail stores reach a sales ceiling that’s tough to penetrate. In some years sales are a little higher and in other years sales are down a bit. But, for the most part, our stores tend to stay pretty much in the same range year after year. It could be that in our particular market, we have all the market share that we’re going to get. And, without more financial resources, we find it tough to break through to the next level. Read More...

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