Originally Posted by Scissor Queen
Originally Posted by MTS
See, I'd be asking if that applies to all spools in the store, or just the NEW spools. Because those old spools didn't suddenly cost them more. :roll:
Yeah, I know they're trying to increase revenue, but stuff like that just drives me crazy.
It's not about increasing revenue. It's about being able to replace inventory. It doesn't matter what the purchase price of the item was 6 months ago. It does matter what the purchase price is today.
Um, you replace inventory from the profits from prior sales. If you haven't been selling the product at current prices - so you are constantly churning your inventory (it's officially called
inventory turnover) - the owner's problem is NOT the price of thread going up next year. It's much bigger. Increasing the cost is NOT going to sell the product faster to get her $$ to buy new product. If she hasn't sold it yet, then she hasn't recouped her investment from when she first bought it 6 months ago. She's still out that cash.
And let's face it, many, not all, shop owners are clueless as business owners. They might be fantastic quilters, but have no concept of cash flow, inventory management, marketing, etc. They think all their quilting friends will come shop there and that's enough to sustain the business. And then are stunned when they can't make rent
or buy new inventory.
Pretty basic.