Last week I wrote a couple of post dealing with two topics. "Fast Nickel or Slow Dime? What Approach Is Right For Your Business?" and "How to Deal with Customer Returns."
So I thought I would piggyback on those articles and share a podcast I did on those very subjects this last spring. In this episode of the Northern Picker Podcast, I discuss the pros and cons to the Fast Nickel and Slow Dime approaches in purchasing inventory and I also take a look at 7 tips to help you better manage the customer return process.
I hope you all enjoy the podcast.
http://traffic.libsyn.com/thenorthernpicker/NPP003.mp3
Show Notes:
Fast Nickel or Slow Dime?
-Do you need your capital back now or later? Do you need to make money now or later?
*The Fast Nickel Approach
-Sourcing the right items that move quickly.
-Capital is the lifeblood of your business.
-Build capital as fast as possible.
*Drawbacks to the Fast Nickel Approach
-Profit margins could be smaller and there is more work involved.
-Prices could drop, reducing your profit margin on an already small margin.
*Slow Dime Approach
-Sourcing items that have a higher ROI (Return On Investment) but typically take longer to sell.
-These are known as long-tail items. They could take months or even years to sell, waiting for the right buyer to come along. But when that buyer comes along the reward is high.
-There is always the exception to the rule and the item could sell right away. But these results are not typical.
*Drawbacks to the Slow Dime Approach
-Ties up your capital. Can I afford to tie it up?
-You could become an inventory hoarder.
-These items must have a track record of selling in the past. If they don't you may have to blow them out at lower prices.
*Conclusion
-There are three sides to every coin. The heads, the tails, and the edge. Stand on the edge!
7 Tips for Handling Customer Returns
- Protect your brand.
- Sell Inventory that is less likely to be returned.
- Don't quibble over returns.
- Have a clear return policy.
- Be quick to resolve the customer issue.
- Protect your capital and have cash reserves.
- Stop complaining about returns.
Thank you to all of you who have been taking the time to read this blog, upvote, share, and comment! I appreciate you all. ~NP
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Check Out The Northern Picker Podcast http://www.thenorthernpicker.com/podcast-2/
