Ep. 133 Mastering Inventory for E-Commerce Success: Expert Tips from Certified Profit First Professional Cyndi Thomason
Danielle and Cyndi Thomason, an expert certified in Profit First at the mastery level and the author of Profit First for E-commerce Sellers, explore the critical role of inventory in determining the success of your business. Cyndi shares valuable techniques for managing inventory levels and emphasizes the importance of maintaining distinct accounts. They will also investigate the advertising budget, highlighting the recommended percentage allocation for this aspect. This episode offers valuable insights and practical advice for ensuring the profitability of your business.
IN THIS EPISODE:
[01:27] Cyndi talks about why inventory can be a serious pitfall for a business, why you need an inventory account
[08:51] Looking at each product you sell to determine how to price
[11:39] Cyndi shares the importance of inventory days and getting creative to move stale inventory
[15:39] She explains why inventory cash flow is different from your operating expenses and the part advertising can play if not managed well
[19:27] Pay attention to the return on their advertising spend and how to figure the percentage you should spend
[26:45] Cyndi shares the downfall of integrating your accounting system with your inventory
KEY TAKEAWAYS:
The key to operating a business where inventory is involved is to allocate funds so you don’t have to borrow money to buy stock.
Sales are lost when you run out of inventory. Good record-keeping through accounts prevents that from happening.
Be very careful of how much you spend on advertising. It is an expense that can quickly get out of hand.
