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Reduce Stock

You have to consider how much stock is needed in your company. It costs money to have too much stock.

The ideal situation is that you always have the item in stock your customer wants to buy. On the other hand it is also very expensive to have too much in stock.

Constant change

Maybe the fashion changes and customers like the colour red but you only have green in your stock. That is bad luck and your red items in stock are worth nothing.


A general rule is that 20 % of a business’s products generate 80 % of it’s income. Try to locate the 80 % of the products and eliminate them from the product line. This might minimise the need for a large stock.


Maybe you could make a deal with your supplier that they only deliver products when you actually have sold them? This is called just-in-time management.

Waiting for perfect is never as smart as making progress.
– Seth Godin, Author

Gross Profit - how to act on it
SWOT Analysis + PO
Contribution Ratio vs Markup
Credit Sale
Contribution Margen or Gross Profit
Influence on Profits
Fixed Costs / Overhead Expenses
Terms of Sales and Delivery
Reduce Stock
Keep Control
The Art of Consultancy
What is Accountancy?
Principles in Accounting
Understand Financial Info
Safeguarding Your Assets
Help to Take Action
Close your Business