Most second-hand shops sit between 2 and 4. Higher is not automatically better.
Most second-hand shops sit between 2 and 4. Above 4 is strong, but the right value depends heavily on your price range and the type of goods: expensive pieces stand longer, and rightly so. A very high turnover can also mean your shelves are too empty and you are missing sales.
Where most shops sit
Expensive pieces stand longer, and rightly so.
So compare mainly against yourself. Last quarter's turnover next to this quarter's says more than a sector figure from a trade where nobody sells the same thing.
What do you compare with?
A sector figure
Says littleNobody sells the same thing.Yourself
Last quarter next to this quarterThat says more.Look at the spread as well as the average. Two fast-moving categories can hide a pile of pieces standing still.
Divide the purchase value of what you sold in a period by the average purchase value of your stock over that same period. Use purchase prices on both sides: dividing selling prices by stock valued at cost makes your turnover artificially high. Calculating once a quarter is enough for most businesses.
Stock that has stood still for a long time: pieces that are not selling and are holding your money meanwhile. Not always bad — some rare pieces simply take a long time to find a buyer. Always worth knowing about, because in a second-hand business your working capital sits entirely on your shelves.
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