sset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but Approaching the point of a mature business brings decisions of policy that are best not left to chance. Various factors are involved in deciding how much stock to hold. Along with a gut feel these should lead to a policy decision so that the purchase of inventory for an online company doesn't end up like the tail wagging the dog, overshadowing the profit business model. We will take the example of retailing chess sets and other chess products in analysing the factors in coming to the right decision.

The Range
If a large range of chess products are held, such as with Chess Baron in the US and UK, how much of each line should be held? Clearly if an eCommerce company such as this had 20 different lines, the solution is simple, and the ratio of stock value to total retail sales looks pleasing to any bank manager, perhaps around 10%. In the above example, the retailer runs with a fairly large inventory compared to many in the industry, almost 200 lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but g the profit business model. We will take the example of retailing chess sets and other chess products in analysing the factors in coming to the right decision.

The Range
If a large range of chess products are held, such as with Chess Baron in the US and UK, how much of each line should be held? Clearly if an eCommerce company such as this had 20 different lines, the solution is simple, and the ratio of stock value to total retail sales looks pleasing to any bank manager, perhaps around 10%. In the above example, the retailer runs with a fairly large inventory compared to many in the industry, almost 200 lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but h of each line should be held? Clearly if an eCommerce company such as this had 20 different lines, the solution is simple, and the ratio of stock value to total retail sales looks pleasing to any bank manager, perhaps around 10%. In the above example, the retailer runs with a fairly large inventory compared to many in the industry, almost 200 lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but lines in total. To hold even ten of each line means a stock total of 2000 units, which with a purchase price of $50 on average, means that the cost of stock is very significant. With a typical turnover of this kind of store perhaps reaching over $120K, the ratio of stock value to retail sales approaches 100%. The inventory also represents an asset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but sset for the company, and so the asset will be taxed as if cash - almost definitely meaning a loss or break even for the first two years as the stock is ramped up - unless something can be done to reduce the inventory level, which looks mandatory at this ratio level. Stores such as ChessBaron hold somewhere in the region of $60K in stock, but giants of the industry such as WholesaleChess would hold an inventory value of $200K. The largest chess retailer - ChessUSA also has a store in New York and holds a minimum of $300K in stock at any one time.

Where it comes from
If the chess goods come from a domestic source, the stock holding can be reduced whilst keeping in touch with stock levels at the supplier. Buying from wholesalers who have gone through the pain of buying from China or India, etc., suggests that the higher price may be worthwhile in some cases. When this is not available, the model of purchasing from less developed countries means that stock cannot follow any slick JIT model, nor bought from the suppliers as orders arrive, except in high unit price chess sets which are often built to order. This clearly influences the stock level decision - purchasing chess sets from India just isn't as fast or flexible as buying from a domestic wholesaler.

Intelligent Stocking
Clearly some items sell better than others. With our example, having a wide range is part of the store's marketing strategy. ChessBaron holds so mnay lines that generally anyone that wants to buy chess sets can buy from them, they'll find something that is appropriate. Holding just a few of the slower selling chess sets and marking them out of stock when sold instead of rushing to g