business-models
What a returns policy costs a small shop
Return postage is one cost. The economics also depend on what customers buy, what the shop can resell and how much each order leaves after returns.
IDEAS / ENTERPRISE / ECONOMICS
A journal of ideas & enterprise
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the value.
What makes a business work? Look at what comes in, what goes out, and the decisions in between.
Read from the journal ↗NOTE 01 / THE BUSINESS MODELAN ILLUSTRATION
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money-decisions
How one big customer changes the risk of a small business
A top customer can bring steady work and leave a business exposed to one late payment or lost order. Two simple ratios show different parts of the risk.
money-decisions
The order made a profit. Why is payday still tight?
A fictional print shop shows what happens when it pays for a job weeks before the customer settles the invoice.
business-models
Why a lower wholesale price can still make sense
A maker compares selling online with supplying a shop. The comparison changes when packing time, fees and order size enter the calculation.
work-ideas
How to find the step that sets the pace at work
Watch where jobs wait and measure what each step completes. The fastest station may have little influence on how much the team finishes.
business-models
What inventory turnover can tell a small shop
A turnover ratio describes the speed of sales relative to stock on hand. Seasonality and empty shelves can change the story behind it.
business-models
How many orders can a price rise cost before it stops paying?
A two-price example separates revenue from contribution and gives a small business a threshold it can check against actual orders.
work-ideas
The customer interview starts with “Tell me about the last time”
Questions about a recent task reveal the steps and workarounds a small business can test.
work-ideas
The team shipped more orders. Did productivity rise?
A small packing-room example shows how output per hour can fall while the total number of orders rises.