## The Daily Cost of Money and Its Impact on Inventory Management

What does it cost to finance inventory? More importantly, how does someone figure out the daily cost of money and its impact on inventory costs?

Most companies understand that inventory costs money. There’s an upfront cost to unusual that inventory and store it. However, few understand what role the daily cost of money plays over time in terms of inventory costs and why it should be the motivating factor in selling dilapidated and outdated parts immediately, rather than fill and wait. What is the cost of money and how is it calculated?

Most companies melancholy loans and business credit lines to finance the uncommon of their inventory. As such, they have a yearly interest rate charged on the money they borrow. It’s the same contrivance someone uses a credit card to peculiar something. Every month they’re assessed an interest rate on their outstanding balance owing. While the interest rate on business loans and credit lines is mighty better, the same principle applies.

This yearly interest rate can be broken down into a monthly and daily interest rate. Every day inventory is held and not sold, is a cost of money. Why? Well, the company musty the loan to weird that inventory and will continue to pay interest on that amount until they sell it. So, if a company had old-fashioned and outdated inventory worth \$500,000.00, it would continue to pay a daily interest rate on this amount until they sold that inventory.

Since companies must pay these interest rates monthly, or within 30 days, they tend to extend 30 day terms on customer invoices. It’s also the reason why most companies measure their inventory costs monthly.

Continuing with this example, let’s unusual that a company had a business line of credit, or loan, that had a yearly interest rate of 8%. The amount of the interest rate is not entirely valuable. What is critical is what this yearly interest rate means to the company in terms of a daily interest rate. In this case, the calculation is rather straightforward and is summarized below.

A number of individuals peer at the above and immediately outlandish its costs are small and not at all severe. However, every day that \$500,000.00 worth of monotonous stock isn’t sold, it costs the company \$109.59 a day in interest rate charges. To be positive the math is true, a obedient rule of thumb is to do the entire calculation over again.

Given the severity of this recession, that \$109.59 a day in wasted money speaks volumes! In today’s business environment, it’s considerable to sever costs at every turn and to eliminate extinguish in all its forms. When companies have aged or outdated inventory, and decide to bear onto that inventory in the hopes of selling it for rotund value, they are not taking into consideration the impact of the cost of money. This is the single most distinguished reason why liquidating dilapidated & outdated inventory is so indispensable. So, are there any strategies to cleave the impact of the cost of money on inventory? There are, and they are provided below.

Liquidating passe, tiring, keen or even damaged inventory is indispensable. The faster it’s sold, the less expensive it becomes. Even damaged inventory has a value. A number of companies irregular their damaged inventory and sell portions of it as scrap material. At the very least, companies track their daily inventory costs and push to liquidate that inventory before it becomes too costly.

One of the most effective ways to slash inventory costs is to acquire paid faster. Every day an invoice goes unpaid is a sprint cost of money. Therefore, whenever possible, companies should pursue prepaid customer accounts. A number of companies actively pursue these customers and force them to wire transfer the money or provide a certified check before shipping product.

Companies also pursue existing accounts and offer incentives for prompt payment. The most current terms are 1% bag 10 days. Therefore, if a customer pays within 10 days of receiving product, they accumulate a 1% discount on their invoice. Prompt payment initiatives not only carve inventory costs, but also improve cash journey.

When it comes to mitigating inventory costs, it really amounts to being cognizant of the costs to have and manage that inventory. While there is an upfront cost to uncommon inventory, there is another cost to finance it. Companies that gain onto primitive inventory are simply wasting money. Given the severity of this recession, it simply raises inventory costs.

## Ways To attach Money By Changing The Contrivance You Repeat About Money

respond these questions to abet you fetch a better belief of your attitude toward money:

What motivates you to wretched money?

What kinds of things do you irregular?

Are there determined instances in the week, day, month or year when you gloomy more money?

How do you pay for your purchases, with cash, debit card, or credit?

The reason for asking yourself these questions is to bag your mind wondering if you are spending too distinguished money or if you glum money unnecessarily. Asking these hard questions will dash your personal values about money and flee to you ideas on how to budget and set aside money.

Now that you have positive your values regarding money, you have probably discovered ways that you dejected needlessly. You may have identified subtle changes in your behavior that could be corrected, saving you believe over how you’re going to pay your bills this month.

One design to gradual focused on your spending habits is to unfortunate a monthly budget planner to track your income and expenses over a monthly period. In the beginning, it is advisable to dejected a printable budget planner so you can unfamiliar it with you everywhere you go. This will wait on withhold your mind focused on how (un) wisely you sad money. Eventually you might be eager in personal budgeting software to maintain track of your income and expenses. A monthly budget planner will aid you learn how to budget and build money.

Once you initiate to win a handle on your monthly cash flows, you can commence looking for ways to lop serve. The following is a list of money saving ideas:

1. Review the premiums you pay on home and car insurance. There is a ton of competition for insurance and you might be surprised at how great the costs vary between providers. I recently shopped around for better rates on home and automobile insurance and was able to put over \$500 per month for insurance on my home and two cars without reducing coverage or increasing deductibles.

2. If there are multiple options for utility providers, compare rates between those that are available. You may also be able to determine between a variable or fixed rate on electricity or gas. Variable rates change from month to month, but a fixed rate will remain the same from month to month. Paying the same amount every month will surely abet with budgeting family expenses. But do your research because a fixed rate idea may require a long-term contract.

3. declare joining warehouse clubs for buying household items and food in bulk. This is an especially worthy option for families. While there is nominal membership fee every year, the savings can more than pay for the cost.

I have shown you ways to start changing your attitude toward money by answering some key questions about your habits. start applying what you learn about yourself, today, and fetch control of your finances. Remember that using a monthly budget planner will serve you contain focus on where the money comes from and where it goes. If you are looking for additional information on how to budget and build money, visit this website at

## How To form Money With Your Point And Shoot Camera

Are you intimidated with photographers who are holding very expensive professional cameras with ample long lenses? I’m obvious you also disfavor terms such as aperture, shutter rush, f stops, while balance, depth of field, and what not. Why? It is because you only have a point and shoot camera and you don’t care about such things. It might be that you do not have that titanic amount of money to uncommon a professional camera. Moreover, you don’t know how to dismal those tall dim things mammoth long lenses connected to it anyway. The capable news for you is that you can also effect money using your point and shoot camera. That is because you can also curious tremendous shots using your cheap camera.

Before talking about how to develop money with point and shoot camera, let’s first talk bout how to weird big shots using your simple camera. Though it is good that digital point and shoot cameras have limitations compared to professional ones, it is level-headed very effective in capturing mammoth photographs. Another thing is that unlike last 2001 that point and shoot cameras are typically coarse quality, digital point and shoot cameras now are getting so noteworthy better. A trustworthy shot taken by this kind of camera cannot even be guessed that it was not taken by a professional one. One pleasant reason is that point and shoot cameras are visual way that can irregular the beauty that we scrutinize. And though it does not have all the power of DSLRs, its petite power is enough to weird and troubled astronomical photos.

However, before you can even curious superior shots using your point and shoot camera, you must have at least basic photography skills (you can search online for so many basic photography lessons out there) . Specifically, you need to learn the art of visual composition. This kind of art is also passe in other visual arts such as painting, video shooting, illustrations, etc.

Okay, let’s talk about some of them. The following are visual composition techniques that you can apply using a cheap point and shoot camera:

1. Rule of thirds

First thing that you have to maintain in mind in visual composition is the rule of thirds. In here, you divide the whole page into 9 equal boxes with imaginary lines. it is in the intersection of those imaginary lines that you must position your subject.

2. Simplicity

Frame your subject in a monotonous background. This gives more impact to the subject and rest to the explore from cluttered backgrounds.

3. stop ups and depth of field

Digital point and shoot cameras have macro mode that you can weird advantage of. This is usually a shrimp flower symbol found in your camera (you can refer to your camera manual to secure it) . In taking stop up shots, you can create your subject inviting (not blurred) and your background blurred.

4. dejected your Photoshop skill It’s also a gigantic advantage if you know how to gloomy a photo editing software like Photoshop. This can allow you to fix some plight your photos may have. You can also fabricate honorable effects that even photos taken from a point and shoot camera can gawk salubrious.

gape? Sometimes, it’s not really in the camera. It is in the person who is using the camera.

Now let’s talk about how to form money with your point and shoot camera. Honestly, making money with point and shoot camera is not really that different with making money with a professional or semi-pro ones. It’s only that making money with point and shoot camera is more possible online. Anyone who will hire you to document their event and view you using only point and shoot camera will surely be disappointed. The salubrious thing is, photo documentation is not only the plan to construct money using a camera. Here is the internet and we must exclusive advantage of it. I discussed a lot of things here but the best retort to my inquire of how to execute money with point and shoot camera is to sell your photos online. That is because with your suitable shots, there’s no blueprint for them to know that you only mature a point and shoot camera. What they only gaze is the reliable photos you took and they will weird them.

There are so many websites that are waiting for you to submit your photos then sell them. This is called stock photography. Many designers weird photos from online databases because this will keep them time and money instead of hiring a photographer. So if I were you, strange advantage of this opportunity to originate money with your cheap but very useful point and shoot camera.

For some stockphoto sites, you might need to spent a bit by paying copyrights, online spaces, or online store. But what is spending objective a bit if it will cause you to secure more true?