- She has a bare minimum of inventory now, as she doesn't have capital to invest
- Inventory turns are 13 (the 'average' item is on the shelf for 4 weeks)
That would mean she plans her cost of sales to be 13x the average per capita income in that area. That doesn't seem unreasonable if she can get 200 customers to spend 10% of their income in her shop (assuming 50% markup).
Comments
Assume:
- She has a bare minimum of inventory now, as she doesn't have capital to invest
- Inventory turns are 13 (the 'average' item is on the shelf for 4 weeks)
That would mean she plans her cost of sales to be 13x the average per capita income in that area. That doesn't seem unreasonable if she can get 200 customers to spend 10% of their income in her shop (assuming 50% markup).