How Can A Boss Find Hidden Loss Products?

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But the fact is not as good as most dealers think.

What is?

The so-called invisible loss commodity is the kind of merchandise that appears to be in normal sales and has sales profits. In fact, after calculating the real operating costs, it will be found that the sales cost of these goods is greater than that of their sales profits, which is a loss of commercial products, or even more sales, the more losses, the author's experience, the invisible goods in the dealer's commodity group occupies about 3%--15%, and even more than 20%.

How did this invisible commodity come into being? Why did he say it was invisible?

The dealer still stays in the simple calculation form of the price of goods, including the cost of goods and the selling expenses, which is the profit, but the sales cost is not very simple. The selling cost or the composition of the selling cost is made up of many aspects, such as vehicle pportation cost, personnel cost, interest cost of capital interest, customer's return cost, management cost sharing cost, warehouse wastage cost, customer / consumer's replacement cost, fixed equipment depreciation cost, the cost of collection, the packaging loss / replacement cost of the commodity itself, the cost of the sample provided to the customers, etc. these costs are only the visible cost at present, and there are still many long-term and unseen costs. The reason for the invisible loss is that the dealer management system is not in place, especially the financial accounting is not in place.

It is a very complex and professional job. It requires a professional financial team and system to accomplish the task. However, the financial personnel and financial system of dealers are often very simple. Generally speaking, they are wives, and their nephews or nieces make cashiers. Neither professional nor energy can achieve real financial and cost accounting functions. Moreover, strictly speaking, all sales costs should be apportioned accurately on every commodity, and most dealers do not do this at the most, that is, at the most cost can be calculated as a whole. To really calculate the sales cost of a commodity,

The quantity of goods produced is often much less than that of the distributors. However, the manufacturer's financial staffing and system are several times the number of dealers, or the dealer's financial system is in front of the manufacturer. That is the level of Pediatrics. A single cost accounting will be very detailed in the formal Enterprise. Accounting for the gross profit of a commodity will never be as simple as the factory price minus raw materials. Apart from some simple and obvious costs, the hidden costs of fixed equipment, interest on capital, the proportion of preset commodity loss and so on will be accounted for. Some will also presuppose the related costs that may occur in the latter stage of operation, and the apportionment of these costs in related commodities. By contrast, manufacturers

To put it simply, the formal cost accounting system can not only calculate the obvious cost, but also calculate the invisible cost, and even calculate the cost that may happen in the future. Such cost accounting is the real cost accounting. Many dealers only charge the surface fees that they can see into the cost, invisible costs can not be seen, let alone the presupposed expenses for future sales activities.

Instead of generating profits, they are wasting all kinds of resources and expenses, swallowing the profits created by other profitable commodities. On the other hand, there are hidden loss products in the commodity group of dealers, because they are invisible, and the dealer owners can not see them. They can only feel the profit situation is not as good as they want from the whole. Therefore, they try every means to increase or introduce new products. Because of the financial accounting system is not in place, there will inevitably be hidden loss products in the newly imported commodities. The more the new commodities are introduced, the more hidden products will be brought about. This creates a vicious circle, resulting in the overall profit level of many dealers has been difficult to improve greatly. The danger of invisible loss goods to dealers is obvious. On the one hand, these products themselves are not only

In fact, in a sense, if the dealer wants to increase the profit level, the primary task is not to add any new products. Instead, it is necessary to quickly import the real financial accounting system, to find out the invisible commodities that are hidden in the commodity group, and discard them decisively. This is the simplest and the fastest way to improve the overall profit level.