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Need Advise Regarding Depreciation LossThis is a thread in the General Retail Discussion forums.Hi guys, currently I have a few 2nd hand electronic stores overseas that offer buy, sell and trade. All the ... |
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![]() Join Date: Apr 2013
Location: Tampines
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![]() Hi guys, currently I have a few 2nd hand electronic stores overseas that offer buy, sell and trade. All the stores are doing quite well and I'm looking to open another new branch that sells only NEW electronic products instead of 2nd hand products.
I've spoken to a few sole distributors of assorted brands (ie: Sony, Samsung, Acer, Asus, etc..) regarding their new electronic products and got their cost price list. The profit margin for new products seems to be a little lower than the 2nd hand products we are selling which means we will be selling in mass. ie: Samsung LED TV cost price is $500 and retail price is $550. The profit margin is about $50 per piece. My question is: If I place a bulk order with the distributors at cost price of $500 per piece with the intention to sell at retail price of $550 per piece, what should I do if the retail price drops to maybe $450 per piece and I still have left over inventory on hand? I mean if I sell the left over inventory at retail price of $450, I still lose $50 per piece (Depreciation Loss). What should I do besides selling them at a loss? Any ideas? Please advise. Thank you very much. |
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