| Short on Cash? Sales Partnering Can Help

Posted in Retail, Spa/Salon at 9:00 AM by Loftis Consulting

For small businesses, access to working capital is critical to day-to-day operations, business expansion and ultimately long-term success.  Sales Partnering is an alternate to having your cash tied up in retail inventory waiting for items to sell to get the cash you need for your business today. You can eliminate the constraints of time and money that limit your business. The benefits of Sales Partnering are many:

  • Expand operations
  • Invest in your business
  • Hire more employees
  • Enhance cash flow
  • Create a retail operation

As a business owner, you know how important it is to have cash on hand to pay the bills.  In the recent downturn, many businesses lost access to bank loans, maxed out on their credit cards and do not have collateral to get other funding.  For your retail operations, it may take 90-days or more to get back the money you invested in the inventory and you still need to have cash on hand to constantly restock the inventory.

Sales Partnering is a strategic way to free up cash for what you need to do to make your business a success while at the same time still receive profits from selling retail products.  The process works like this:

  • Your Sales Partner buys and stocks the mutually agreed retail inventory in your establishment
  • Your Sales Partner buys your existing retail inventory for an instant cash infusion
  • Your Sales Partner works with you to create retail marketing campaigns to increase sales at no additional cost
  • Your Sales Partner trains and develops staff to increase retail sales at no additional cost
  • Once a month, you provide your Sales Partner a detailed sales report and pay them the wholesale cost for the product that sold plus a percentage-based fee on the product sold
  • Your Sales Partner restocks your sold inventory and adds new mutually agreed products

For example, your Sales Partner stocks $10,000 of retail inventory ($5,000 wholesale value) at your business. You were able to sell $3,000 in retail product ($1,500 wholesale) in January.  You would pay your sales partner $1,500 reimbursement for the product that sold and to be restocked plus $525 fee (based on a 35% fee rate).  So in the end, you received $975 in January without investing a single dime into inventory.

Not only does your business generate much needed revenue without having to invest in inventory you also have other benefits:

  • Frees up time from inventory management to do other things
  • Retail marketing is now done by marketing experts resulting in increased sales at no additional cost
  • Only a one year commitment which is up to you to renew or not

Sales Partnering is best suited for service businesses where their main business is not retail store operations such as salons, spas and wellness centers.

Loftis Consulting offers Sales Partnering services through its affiliation with Feltis Investments LLC.  To find out more contact Loftis Consulting at info@loftisconsulting.com or check out retail management program details.

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