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TERRITORY 05
Master Inventory
Inventory is where resale businesses make and lose money. This territory covers how loads are sold and graded, what a unit really costs once it is in your building, and why velocity usually beats margin.
Truckloads and palletsManifests and gradingLanded costInventory turnAging and markdownsPortfolio buying
Definitions in this territory
COSTING
Landed cost
Landed cost is what a unit really costs you once it is in your building and ready to sell — purchase price plus freight, handling, parts and the cost of what could not be sold.
VELOCITY
Inventory turn
Inventory turn is how many times you sell through your average inventory in a period — COGS divided by average inventory value.
Playbooks
10 MIN
How to buy liquidation truckloads
Price the load from the manifest using your own expected sell prices and sell-through rate, add freight and refurbishment, divide by sellable units to get landed cost, and only bid if that leaves your margin with room to be wrong.
7 MIN
How to price your inventory
Start from landed cost, set a target margin by category and grade, check it against what the item actually sells for locally, and build in an automatic markdown schedule by age.
Tools
CALCULATOR
Truckload Profit Calculator
Landed cost per sellable unit, expected revenue and margin on a load.
CALCULATOR
Inventory Turn Calculator
Annual turns, days on hand, and margin earned per year.
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