| |
Direct |
Wholesaler |
(ROI=GP%
x Inventory Turns)
For each dollar you invest in inventory you will
make a return of $8.32 if you buy from a Wholesaler.
|
| Average Order Size |
100 Cases |
25 Cases |
| Average Cost/Case |
$25 |
$28 |
| Inventory Investment |
$2,500 |
$700 |
| Weekly Sales |
25 Cases |
25 Cases |
| Turnover Time |
4 weeks |
1 week |
| Inventory Turns |
12 |
52 |
| Gross Profit |
25% |
16% |
This example shows that over a
one year time period, if you invested $36,400 in inventory from a Wholesaler, you would
receive a return on your investment of $302,848!
If you bought direct from a Manufacturer,
your annual investment would be $30,000 and your ROI only $90,000.
By purchasing from the Wholesaler, you will receive triple the return of buying direct,
which will add more cash to your business.
|
