Well, I know where my profits are coming from.
I found out through the reorder process.
I successfully stuck to my budget in August. I still have ten days to see what sales will turn out to be. There wasn't the big dropoff in the middle of the month like there was in June and July, but there is often a big dropoff in the last week of August, as attention turns to school -- especially if the weather changes, so I still need to be careful.
So far, it's staying hot, and there is the added plus of school resuming later than usual this year.
Anyway, I started with a fresh (Sept.) budget this week. Because there is enough time still in the summer to affect sales, and because it all comes due on the credit card at the same time, I weighted half my orders into the first week. 15% will be next week, 35% the third week, and nothing on the week of Labor Day. (School starts, and tumble weeds will waft through my store for a week or so....)
If this all seems obsessive, it's how it's done.
So I made my reorder for graphic novels, and replaced pretty much every book I wanted. I made my reorder for games, and replaced pretty much every game I wanted. I made my reorder for cards, and replaced pretty much every card I wanted.
All within budget.
I did my new book order the next day, because I knew it was going to be much bigger. I decided to double my order for books, because I had a record month in new book sales in July and was on pace to beat that record in August. I always leave a certain percent in my budget for whatever category needs to be increased.
I had intended to spend on 50% of the budget on books this week, and 50% in two weeks.
Well, I hit 50% and I wasn't even close to replacing all the books I'd sold. I kept going until the entire allocated amount was spent, and I STILL was only 70% toward replacing all the books I wanted replaced.
Much less adding any new titles.
So that's where the profits are coming from. It was hidden, because the sales velocity, the momentum, hasn't slowed the least. As I said, it appears I'll have a record month in new book sales again in August. Despite having sold so many significant titles.
I've mentioned before, it appears that having, say, 2000 great titles sells nearly as much as having 3000 great titles.
Obviously, though, I can't keep running down the inventory forever. And much of the sales momentum has been maintained by out-of-towners and tourists. When Fall starts, individual book sales are going to matter more, and shortages are going to impact more.
So I want to get back to the beginning of summer inventory -- plus.
How do I do that?
First thing I'm going to do, is see if August stays good. Right now, my average would result in profits about 1000.00 over estimate. So, I've decided, any profits over the projected estimates will be used to buy books.
If I don't end up with 'extra' profits, I'll have to contemplate buying more books on credit. I started off the year with a 5000.00 charge on books, which I've paid down at 500.00 a month and I am down to my last 1000.00. If I added another 1000.00 in books, and kept the 500.00 payment schedule, I'd have it paid off by the end of the year.
I always want to enter the 'dry' season with as little debt as possible.
It's important to reinforce successful products. And even more important not to let the momentum fall. (Building momentum from a dead start is ten times harder than keeper current momentum going...)
So either way, I'm going to make more orders.
Finally, I think this year will probably end without me making the big leap into 'frontlist' ordering -- (see Aug. 8 entry). I'm still concentrating on the 'backlist' -- books I know are good. Either favorites, cult, or classic. More than uses up my budget.
Was at my sister Tina's house last night, and the stack of new books that she has on her table always remind me of what I'd be up against. They all have Costco tags, and are half the price. Not sure when or if I'll go head to head with Barnes and Nobles and Walmart and Costco on 'frontlist' books.
I guess when I run out of 'backlist' books I want to carry....
I found out through the reorder process.
I successfully stuck to my budget in August. I still have ten days to see what sales will turn out to be. There wasn't the big dropoff in the middle of the month like there was in June and July, but there is often a big dropoff in the last week of August, as attention turns to school -- especially if the weather changes, so I still need to be careful.
So far, it's staying hot, and there is the added plus of school resuming later than usual this year.
Anyway, I started with a fresh (Sept.) budget this week. Because there is enough time still in the summer to affect sales, and because it all comes due on the credit card at the same time, I weighted half my orders into the first week. 15% will be next week, 35% the third week, and nothing on the week of Labor Day. (School starts, and tumble weeds will waft through my store for a week or so....)
If this all seems obsessive, it's how it's done.
So I made my reorder for graphic novels, and replaced pretty much every book I wanted. I made my reorder for games, and replaced pretty much every game I wanted. I made my reorder for cards, and replaced pretty much every card I wanted.
All within budget.
I did my new book order the next day, because I knew it was going to be much bigger. I decided to double my order for books, because I had a record month in new book sales in July and was on pace to beat that record in August. I always leave a certain percent in my budget for whatever category needs to be increased.
I had intended to spend on 50% of the budget on books this week, and 50% in two weeks.
Well, I hit 50% and I wasn't even close to replacing all the books I'd sold. I kept going until the entire allocated amount was spent, and I STILL was only 70% toward replacing all the books I wanted replaced.
Much less adding any new titles.
So that's where the profits are coming from. It was hidden, because the sales velocity, the momentum, hasn't slowed the least. As I said, it appears I'll have a record month in new book sales again in August. Despite having sold so many significant titles.
I've mentioned before, it appears that having, say, 2000 great titles sells nearly as much as having 3000 great titles.
Obviously, though, I can't keep running down the inventory forever. And much of the sales momentum has been maintained by out-of-towners and tourists. When Fall starts, individual book sales are going to matter more, and shortages are going to impact more.
So I want to get back to the beginning of summer inventory -- plus.
How do I do that?
First thing I'm going to do, is see if August stays good. Right now, my average would result in profits about 1000.00 over estimate. So, I've decided, any profits over the projected estimates will be used to buy books.
If I don't end up with 'extra' profits, I'll have to contemplate buying more books on credit. I started off the year with a 5000.00 charge on books, which I've paid down at 500.00 a month and I am down to my last 1000.00. If I added another 1000.00 in books, and kept the 500.00 payment schedule, I'd have it paid off by the end of the year.
I always want to enter the 'dry' season with as little debt as possible.
It's important to reinforce successful products. And even more important not to let the momentum fall. (Building momentum from a dead start is ten times harder than keeper current momentum going...)
So either way, I'm going to make more orders.
Finally, I think this year will probably end without me making the big leap into 'frontlist' ordering -- (see Aug. 8 entry). I'm still concentrating on the 'backlist' -- books I know are good. Either favorites, cult, or classic. More than uses up my budget.
Was at my sister Tina's house last night, and the stack of new books that she has on her table always remind me of what I'd be up against. They all have Costco tags, and are half the price. Not sure when or if I'll go head to head with Barnes and Nobles and Walmart and Costco on 'frontlist' books.
I guess when I run out of 'backlist' books I want to carry....