Quote:
Originally Posted by BigNumbers
Never been there, but it's obvious these SentryBox folks are pretty poor at 'teh business'....
They should know their expected average inventory costs for a coming year, and then can hedge the FX for the year for something like 75% of that expected cost. Then they can post, with relative certainty, CAD pricing... Instead of passing on the FX onto the customer... That's pretty poor business to say "hey, we suck at forecasting our inventory purchases so here, absorb our inability to do business".
I understand they are a niche company but seriously... Bush league.
|
It's not about forecasting for the year, it's quite literally about storage. You're also forgetting to factor in the hundreds of new products that come out in a year. You sell far more of these than you do even the best perennial products, and you can't pay for these in advance. Also, in a market as niche as board games, you often can't stock up on products to that extent, because the companies making these have the same storage problems, and don't have infinite in stock at any one time. They do small printings a few times a year, because quite literally no-one in the system has enough warehouse space to hold a years worth of product at any one time.