Making your business effective is all about satisfying the imminent
needs of your customers. Filling the vacancy of demands in their hearts.
Once they are satisfied, their will definitely be a traffic of
customers at your disposal. Just as the primary goal of every business
is to maximize profits, there are logics and systems behind this.
One of these logics is the Accounting term STOCK TURN OVER. In the simplest explanation, Stock Turn Over (STO) is all about how many times you are able to go to the market and make purchases for resales. How many times you are able to turn your stocks in term of sales at a period of time. The more stock is turned over, the more profit is inevitable. However, there are certain factors that contribute immensely to a high stock turn over. Here are a few factors.
1. PRICE. One of the laws of demand is that the lower the price, the higher the level of demand. When goods and services are sold or rendered at a quality state with an average price, there will be increase in sales as well as STO.
2. TIME AND SEASON. Every product is time and season bound. Take for instance, in the season when rain falls, there is a definite increase for umbrellas. There is always a product for a time and season. Check out if you have your Products fit into the season.
3. PRODUCT. Time and Product are interwoven. They go hand in hand. Your product should have quality such that it fits into the season. Your Product will determine your sales. If need be, improve the quality of your product. People tends to buy products of value and quality.
4. AWARENESS. The level at which your product is been made known to the general public is very vital. Available information to a prospective buyer matters a lot on the long run. The more you make your product known through awareness creation, the more it tends to pull prospective buyers. Intensify your awareness!
5. PLACE. Place here, could generally be referred to your market. The market in which your products are sold is a cogent factor to consider in increasing your STO. If your goods or services do not fit into your immediate market, you can try other markets. But then, make a research to see if your intending market can fit your product so as to increase your sales.
One of these logics is the Accounting term STOCK TURN OVER. In the simplest explanation, Stock Turn Over (STO) is all about how many times you are able to go to the market and make purchases for resales. How many times you are able to turn your stocks in term of sales at a period of time. The more stock is turned over, the more profit is inevitable. However, there are certain factors that contribute immensely to a high stock turn over. Here are a few factors.
1. PRICE. One of the laws of demand is that the lower the price, the higher the level of demand. When goods and services are sold or rendered at a quality state with an average price, there will be increase in sales as well as STO.
2. TIME AND SEASON. Every product is time and season bound. Take for instance, in the season when rain falls, there is a definite increase for umbrellas. There is always a product for a time and season. Check out if you have your Products fit into the season.
3. PRODUCT. Time and Product are interwoven. They go hand in hand. Your product should have quality such that it fits into the season. Your Product will determine your sales. If need be, improve the quality of your product. People tends to buy products of value and quality.
4. AWARENESS. The level at which your product is been made known to the general public is very vital. Available information to a prospective buyer matters a lot on the long run. The more you make your product known through awareness creation, the more it tends to pull prospective buyers. Intensify your awareness!
5. PLACE. Place here, could generally be referred to your market. The market in which your products are sold is a cogent factor to consider in increasing your STO. If your goods or services do not fit into your immediate market, you can try other markets. But then, make a research to see if your intending market can fit your product so as to increase your sales.
