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02-11-2011, 06:41 AM
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Daryl
Member
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Join Date: Apr 2009
Posts: 3,347
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Quote:
Originally Posted by philliesphan
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
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Quote:
Originally Posted by dstudeba
I am sure Levi does not have a capital or cash flow problem, and remember inventory cannot be replaced by a call to a warehouse so it does not fit easily into a traditional business model.
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+1
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