|
|
Master Distributor
|
Manufacturer(Direct) |
Average
Order Size
|
25 Cases |
100 Cases |
Average
Cost per Case
|
$28 |
$26 |
|
Inventory
Investment Cost |
$700 |
$2,600 |
|
Sales per
Week |
25 Cases |
25 Cases |
|
Inventory
Turnover Time |
1 week |
4 weeks |
|
Inventory
Turns |
52 |
13 |
|
Gross
Profit Percentage |
16% |
22% |
|
Yearly
Inventory Investment (Average
order cost x inventory turns) |
$36,400 ($700 x
52) |
$33,800 ($2,600 x
13) |
|
ROI = GP%
x Inventory Turns |
$8.32 per $1 invested (16% x 52) |
$2.86 per $1 invested (22% x
13) |
The above table shows the
comparison between purchasing from a master distributor and direct from the
manufacturer.
Selling the same 25 cases
per week, you can see:
You
are able to turn your inventory 4 times faster using a master distributor.
Minimum
order requirements are much smaller using a master distributor.
Your
inventory investment cost per order is 3 ½ times less from a master
distributor.
Return
on Investment is up to 3 times greater using a master distributor.