Build An Esty Shop Using A Very Simple Inventory System | Desarie Anderson | Skillshare

Build An Esty Shop Using A Very Simple Inventory System

Desarie Anderson, Cash Flow Management

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2 Lessons (18m)
    • 1. Introduction

      1:37
    • 2. Lesson 1 - How To Use The Spreadsheet

      16:05

About This Class

  1. If you sell products on or offline, this class is perfect for you
  2. Your business is 100% dependent on inventory, which means your profits are 100% tied to how you manage your inventory.
  3. Bad inventory management = bad profits
  4. Good inventory management = good profits
  5. In this class, you will learn how to use the accompanying spreadsheet to
    1. Determine the quantity of inventory you have in stock (do I need to restock)
    2. How to determine your total inventory at cost value
    3. How to determine your total inventory at retail value
    4. How to determine your total net profit in the inventory you have already invested in based on your current inventory level
    5. Your total sales tax value based on your current inventory level and your sales tax rate
  6. You will also be able to play with different profitability scenarios based on your current and future inventory levels
  7. You can do all of this with the spreadsheet I will be using to teach this class.  The spreadsheet is also part of your assignment download.

Transcripts

1. Introduction: Hello, everyone. And welcome to my class. Build an esti shop using a simple inventory system on what your profits soar. If you sell products on offline, this class is perfect for you. If you do sell products, your business is 100% dependent on inventory, which means your profits are 100% tied to how you manage your inventory. Bad entity management equals bad profits. Good inventory management equals good profits in this class. You're going to learn how to use the accompany work heat to number one. Determine the quantity of inventory you have in stock. How to determine your total inventory at Cost Value House to determine your total inventory at retail value. How to determine your total net profits in the inventory you have already invested in. Based on your current inventory level, your total sales tax value based on your Carmen's inventory level and your sales tax rates . You will also be able to play with different profitability scenarios based on your current and your future inventory levels. You can do all of this with the spreadsheet I will be using to teach this class. The spreadsheet is also part of your assignment download, so follow me to the next lesson 2. Lesson 1 - How To Use The Spreadsheet: I will be using a small cell on that sells products to demonstrate this lesson tat with the headings First heading we have is item number, the number that you can assign to a product. It could even be a school number or it could be any kind of identify. So if you use numbers to identify your products for any particular reason, this is where that number would go. Then we have the item name, and this is gonna be the name of the item that you're selling. The manufacturer just represents who manufactured the products that you're selling. And then we have the item description, which describes the item that you're sending so in this instance way having we have two different types of TCI moisture shampoos that was sending. We have the 16 ounce and we have 18 ounce. So the ice and description is going to differentiate between the item name just in case item name is the same. It's going to be some kind of description that steps them apart. So that way you know exactly what you sold or what you have to reorder, and then we have the cost per item. Item is how much you spent or how much you paid for each particular item. Then you have the quantity and stock. This tells you how much of each item you have left in the stock room or on the fell on floor, and then we have a total inventory value. The total inventory value is made up off the cost per item multiplied by the quantity in stock. So in this case, let's assume that the CI infra moisture shampoo 16 ounce cost US $15. So we paid $15 for this item. Its in house. We don't we have 15 shampoos in stock, either in the back room or sitting on the salon floor. So once we include the cost per item, we then get the total infantry value. Now the total inventory value is made up off the cost per item, which is 15 multiplied by the quantity and stock, which is also 15. And that gives us $225. So what? This tells you that you have $225 invested in cheese in front moisture shampoo. 16 ounce. Okay, now here we have the retail value for item. The retail value per item tells you how much you felt each item full in the industry. It's the norm to might to mark up each Isom 100%. So let's assume we're marking up this item 100%. That means that it's going to be $30 so we paid $15 for it. We mark it up 100% or whatever. You mark mark your part of some fool and that is going to give us a retail value per item off $30. So that means we're selling each item for $30. So now we have the total retail value. The total retail value is made up off the retail value per item multiplied by the number of items we have in stocks. We have 15 items in stock multiplied by the retail value, which is $30. That tells us that we have a total retail value off she in from moisture shampoo in the amounts off $450. Okay, now the net profit lets us know how much off the $450 is actual is actual profit. In this case, it's $225 for the net profits is a representation off the total retail value, which is $450 minus the total inventory value, which is $225 with gives us a net profit off $225. Now I'm going to show you how the filtering feature works. So these little arrows that you see at the corner of each heading is how you would filter your products now in terms off your criteria. It depends on what you're trying to see. In this case. I want to filter this worksheet by human hair on by lace front wigs. I would like to see how much human hair and lace fronts front wigs I haven't stock. I also want to find out how much I have invested in human hair and lace front wigs. In addition to that, I would like to know what my net profit is. So I want to know what my investment is, and also how much am I going to make on the human hair and the lace front wigs that I have in stock? But before we do that, can let's fill out some additional information so we can get the criteria that we're looking for. So let's start with that 14 inch human hair. The cost per item, the cost per I term. Let's just say we pay $25 and for the 22 inch, let's assume we paid, Let's say $45 man, for the lace front wig. We're gonna will say we pay $50. Okay, so we have. For the 14 inch human hair, we have eight in stock for the 22 inch, we have 10 and stock. And for the 18 inch lace front wig, we have five in stock, so you can see once we entered the quantity and stark it, let us know the total inventory value that we have in stock for that. And then we sell these items. Let's say, for the 14 inch human hair we sell it for, and I'm just throwing out the numbers. Let's just save $40 And then for the 22 inch human hair, let's assume that we sell that for $70 for our lace front wig, we sell that for 101 $100. Okay, so now you can see based on Arkwright area. We can now see what the total retail value is for the for the items, and we can also see what on that profit is. I'm just gonna go ahead and fill these out as well, just for effect. So you can really see how this works and we'll say for the design essential. Let's assume he paid $7 for that and we're just going to double these $20 that's $14. OK, so now what I want to see what I want to see is human hair and lace front wigs. I want to see what the quantity and stock is for human hair and lace front wigs. I also want to see what I have invested in that product. And I also want to see how much of a net profit I have sitting out on on the salon floor or in the inventory stockroom. So how do we feel for that? So that because we're filtering by ison name in this case, we're filtering by human hair lace front wig. So we're going to click on the little filthy on the side and we're going to select all so select all it's going to d select everything. Now let us pick our criteria. I want to see the 22 inch human hair. I want to see the 18 inch lace front wig, and I want to see the 14 inch human hair click OK, and that filters everything. So now that tells me that I have 23 pieces in stock when it comes to human hair and lace front wigs, the total infantry value. So this is the total amount I have invested in hair is $900 the total retail value. It's 15 20 but I want to see what my net profit is. So I have $620 of net profit sitting on the salon floor or in the stock room, and that's what I want to see. So that's how you filter. Now. If you want to go in an unfiltered ER and also once you feel to something, you'll notice that rather than having the down arrow on the corner, like all these ones do, is going to have a different symbol. I'm not really sure what that symbol is, but it's not a narrow, but what that tells you is This is the criteria in which you used to filter the spreadsheet . If you want to unbuilt er, you just click on that little thing. It's been immediate. I don't know what it's called. You're going to clear, click on, select all and now click OK, everything has come back. Now let's try one more filtering process. Now let's assume that we would like to purchase some more items and any time, an item. If any time we haven't, I've him that only has a quantity off five or less in stock. We would like to reorder that particular item so that in that case, we're going to filter by a quantity and stock. So we're going to click on this arrow and they were going to click selectable we're going to look for all of the items are five or less. In this case, we only have one item that is five. So everything else is above five, which means that we don't want to reorder any of those items just yet. You only want to reorder the items of the five or less we're gonna click, OK, and it tells us that we now have to reorder our lace front wigs because we only have five in stock. That's how you use the filter feature when you filter it segments what isolates what you want to see. So that way you can use that information to make decisions that you want to make decisions on what to order. You want to make decisions on whether or not you like to do a clearance because you have too much of something in stock. This is where the filtering method, or rather, the filtering option comes into play. Okay, so now we're going to talk. Well, let's unfiltered. So we're going unfilled to everything by clicking, select all and clicking. Okay, now let's talk about the summary of values table. The suffering of Values table pretty much summarises everything that you see on the spreadsheet. Also, it helps you to determine how much money you have to fork over to the government for self facts. Because, remember, when you're selling infantry, you also have to collect sales tax. In this case, we're going to use 7%. So we're assuming that the county that we live in the charges a 7% sales tax, so that's what we're using here if the county that you live in uses Mawr, you can actually just go up here. You can change that. Seven to, let's say, nine worth of self axis 6%. You can change that to sixth and so on and so forth. I want you to do that. You can actually go in here where its sales sales, tax, sales tax and you can change that from 7 to 6. Okay, so it's telling you that the sales tax that week that you'll be charging every item is 6% so we're gonna change that back for seven. Okay, so here's how you how we read a summary of values table now it's going to appear is if the summary of values table isn't that necessary only because we only have a few items. But if you if you have a lot of inventory or if you have my even a lots, just enough where you don't feel like scrolling all the way down because let's have seen that all of these roads were full. It doesn't necessarily mean that you have a lot of inventory. It just means that you don't you don't you may not want to have to constantly scroll all the way down to get your answer. So in that instance, you can just do whatever you need to do. And then a summer your values table is going to give you a snapshot off your inventory. Now here's how it works. So you have quantity and stock 68 that tells you that the quantity and stock of all of your items can't equals 68. Let's assume the woman to ads some additional items. So let's say we added 50 items of something. See how that changes from 50 to 118. Let's get rid of that. It goes back to 68. If we change the 10 five, it changes your quantity of stock. So the quantity of stock basically just lets you know how many pieces off inventory you have in your salon or in the back room. The total infantry value once again tells you how much cash you have invested in inventory , and the total retail value tells you what the retail value off your total inventory is, and then you have your net profit, which tells you how much profit you have in your investment and the total retail value sales tax line is, it is a combination off the sales tax that you have, plus your total retail value. So this tells you that out of all of the money that you're going to collect, $147 of that is sales tax. And that's the amount that you have to collect and fork over to the government. Okay, so with the cells of values table there, a couple other things you can do with it. Now let's assume that you want to precious some additional hair, but you want to find out before you invest in the hair. How much invent how much of an investment you're going to have to make on what, how much profit you're going to make from that investment. And also what what would the sales tax be? So how much are you going to have to fork over to the government sales tax wise? So let's say you have you carry 14 18 22 inch and that's all you carry, and you like to bump it up and you like to purchase 50 pieces of 14 inch because now you decided that you want to start sending here online or your demand for hair in your area has grown and you would like to start marketing sale of hair. OK, so you decide You want to buy 50 bundles of 14 inch and you like to buy 75 bundles when I say 100 bundles of 22 inches. The girls in your town love to wear long hair, so that's 100. Okay, now you would like to know some specific items regarding this particular regarding your human hair. So I'm going to start out by filtering this. So let's click on select all and then let's choose 14 inch human hair and then we can choose 22 inch human hair and click. OK, so here's what we have now. Of course, you can see everything down here with the exception all the sales task tax component. But let's just assume that you have a lot of heads you're trying to buy and that you can't see this because it's all the way down here somewhere. This is where the summary of sales table comes in because now you know that if you decide to invest in 150 bundles of hair. Your total inventory value is going to cost you $5750. Your retail for the same act for these items is going to be 9000. So you on that profit is going to be $3250 if you decide to invest 150 if you decide to invest in 150 bundles of hair now, the sales tax but you're going to collect from this item from these items is $630 assuming that your sales tax rate is only 7%. So that's a bring summary of the salon inventory control worksheet and let's go in and unfiltered this so it's pretty simple to use. Hopefully, that spreadsheet is going to be of some value to you.