Customers, whether industrial or consumer, like deals. Whether It’s in the sook, the flea market, or eCommerce, business buyers notice and react to special pricing. Customers under inflationary expectations and being shocked in the market will have time and attention for a salesperson bringing a ‘deal’. Though rapidly rising prices are not welcomed, they can create opportunities to increase and bring forward sales cycles.
Market staff want to attract interest as soon as possible to maximize sales numbers desired by finance. Sales staff are often rewarded to push to close business earlier in the year. Enterprises look for ways to position and capture early sales in years where the marketspace is seen as upset or uncertain. Enterprise decision makers will be more open to added marketing plans and sales efforts seeing uncertainty of government macroeconomic policies and global conditions.
Finance is crunching numbers that haven’t attracted attention recently. The role of “First in First out” (FIFO) or “Last in First out” (LIFO) in pricing and inventory decisions hasn’t been a hot topic. Simply put, the revenue from inventory in the warehouse, at future sales prices, is worth more than the same inventory stock at past sales prices due to inflation or markets. The “LIFO cushion” occurs when inflation, or markets, drive prices higher and a material amount of goods are priced from “old costs” not “newer costs”.
Read part two of the Inflation Inventory Sale at the EkaLore blog – www.ekalore.com/blog-1
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