How To Buy Products That Make More Money

But what I eventually realized was that my job was bigger than choosing just good products.

My job was to allocate the cash to the products that were most likely to make the business money.

And those are two very different things.

Because when you buy inventory, you are making an investment decision.

You've got money sitting in your bank account.

You take some of that money out, and you give it to a supplier, and in return, you get boxes of product.

But now that money is gone.

It can't pay your wages.

It can't pay another supplier.

It can't fund your marketing.

You can't fund a reorder on things that are selling faster than you expected.

Your money is literally tied up in stock.

So that stock has a job to do.

Now, let me be clear on this.

You do not buy stock to own products.

You buy products to turn the cash that you have into more cash.

Let me say that again.

You aren't buying inventory just to have products on the shelf.

You buy product to turn the cash that you have into more cash, and every single product must earn the right to receive your money.

That is what you need to be thinking every time you spend.

Because if buying starts with, "Well, what do I like? What do I think will sell? What is on trend? What is the rep telling me is going to be huge this season?" You're starting with the product.

What I want you to do is start with the business.

Start with the business, not the products.

Where are you trying to get to? How much revenue does the business need to produce, and how much profit do you need those sales to create? That's where I want you to start, and then you can work backwards to the products.

Which products are going to help you get to those goals? Because that is a very different way of going into a buying season.