Quote:
Originally Posted by insidethewrapper
Some of these guys would have Millions of $$$$ if they just sold their great inventory. They will die with it and their wives will sell it for pennies on the dollar. Seems better to enjoy the money now. The most successful business people turn over inventory as fast as possible for cash flow so they have the money when the next great offer rolls around. Never made much sense (cents) to me to have a large inventory.
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A) Levi's wife will not sell his collection for pennies on the dollar. At worst, it would go to an auction house for 0% consignment fee.
B) Levi is not hurting for cash flow. You seem to think that there is always trade-offs between inventory and cash flow. You can have both -- as Levi does.
C) A smaller inventory may maximize working capital and cash flow -- but a large inventory makes you a popular seller. Many hear demoan Levi's business model. The reality is that it has been very successful for Mr. Bleam, and that he turns over a lot of inventory on a regular basis (just check closed sales on Ebay). All those sales are a small dent in a formidable inventory.
Not sure why all the vitriol against Mr. Bleam, insidethewrapper. It is not a traditional dealer sales model, but it nonetheless works quite well for Levi & Co.
M