NPP 003 : Fast Nickel or Slow Dime? And Dealing With Customer Returns

Last week I wrote a couple of post dealing with two topics. "Fast Nickel or Slow Dime? What Approach Is Right For Your Business?" and "How to Deal with Customer Returns."

So I thought I would piggyback on those articles and share a podcast I did on those very subjects this last spring. In this episode of the Northern Picker Podcast, I discuss the pros and cons to the Fast Nickel and Slow Dime approaches in purchasing inventory and I also take a look at 7 tips to help you better manage the customer return process.

I hope you all enjoy the podcast.

http://traffic.libsyn.com/thenorthernpicker/NPP003.mp3

Show Notes:

Fast Nickel or Slow Dime?

-Do you need your capital back now or later? Do you need to make money now or later?

*The Fast Nickel Approach

-Sourcing the right items that move quickly.
-Capital is the lifeblood of your business.
-Build capital as fast as possible.

*Drawbacks to the Fast Nickel Approach

-Profit margins could be smaller and there is more work involved.
-Prices could drop, reducing your profit margin on an already small margin.

*Slow Dime Approach

-Sourcing items that have a higher ROI (Return On Investment) but typically take longer to sell.
-These are known as long-tail items. They could take months or even years to sell, waiting for the right buyer to come along. But when that buyer comes along the reward is high.
-There is always the exception to the rule and the item could sell right away. But these results are not typical.

*Drawbacks to the Slow Dime Approach

-Ties up your capital. Can I afford to tie it up?
-You could become an inventory hoarder.
-These items must have a track record of selling in the past. If they don't you may have to blow them out at lower prices.

*Conclusion

-There are three sides to every coin. The heads, the tails, and the edge. Stand on the edge!

7 Tips for Handling Customer Returns

1. Protect your brand.
2. Sell Inventory that is less likely to be returned.
3. Don't quibble over returns.
4. Have a clear return policy.
5. Be quick to resolve the customer issue.
6. Protect your capital and have cash reserves.
7. Stop complaining about returns.
   
   
   

Thank you to all of you who have been taking the time to read this blog, upvote, share, and comment! I appreciate you all. ~NP

Follow me @northernpicker
Check Out The Northern Picker Podcast http://www.thenorthernpicker.com/podcast-2/