How much cash is tied up in your stock?

Every unit on your shelf is money you have already spent. Count what you hold of your main products, put in what each one cost you, and see the total, the product holding the most, and how many months of sales it covers.

Your numbers

Cash tied up in stock: $1,305.00
Product holding the most: Product 1: $600.00
Its share of the total: 46.0%
Months of sales on the shelf: 2.9

You have $1,305.00 of cash sitting on your shelves, enough stock for about 2.9 months of sales.

The Back Office Kit keeps stock value for every product, updates it as you log sales, and flags what to reorder.

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How the sum works

Value of each product = units on hand times what one unit cost you.
Cash tied up in stock = the values of all products added together.
Months of sales on the shelf = cash tied up divided by the cost of what you sell in a month.
Use your cost, not your selling price, everywhere: this is the cash you have already spent.

Questions

Should I use cost or selling price?

Cost: what you paid for the item, or for the materials and packaging to make it. That is the cash already spent. Selling price tells you what the stock might bring in, not what it has cost you.

I don't know my exact counts. Is a guess good enough?

A guess gets you started, but the value of this sum comes from counting. Count your main products once, put the real numbers in, and many sellers find they hold more than they thought.

What should I do with the number?

Look at the product holding the most. If it sells slowly, order less of it next time, bundle it, or run a sale to turn it back into cash you can spend on stock that moves.

This was one sum

The Back Office Kit runs all of them, for every product, together.

One Excel workbook that prices your products, tracks your stock, logs your orders and builds your invoices and wholesale line sheet. One payment of $19. Download the moment you pay.

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The dashboard tab of the Back Office Kit: revenue, profit, cash, stock value and items to reorder.

How much cash is tied up in your stock?

How the sum works

Questions

The Back Office Kit runs all of them, for every product, together.

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