Tuesday, July 08, 2008

"Retailers: Turn on Your Financial Headlights!"™

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Cash Discounts
The tenth of each month, for most retailers, is a critical "payables day". Do not miss taking cash discounts, i.e., 2/10/EOM. Consider this: when a payable due on the 10th of the month is not paid until the 30th, it loses the 2/10/EOM cash discount, and "costs" the equivalent of a 36% annual interest rate. (The 20 days taken is 1/18th of a 360 day year, times 2%, equals 36% equivalent interest.) That's why bank loans are relatively cheap.


Why Join The ROI ?
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Enough already. I MUST control my inventory
I know that Open-to-Buy is important, but I really don't know why or how to use it myself.


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