That's a very odd comment! You are admitting he
Post# of 40991
(Total Views: 453)
Posted On: 04/17/2019 11:05:37 PM
That's a very odd comment!
You are admitting here that SB is selling on consignment. If he calls back product from dealers that will result in a reduction of sales as well as a reduction in A/R. I will go a step further and say that SB never even shipped all the product to his customers. I think he just booked sales based upon his "contract terms". The same 10000 units could have been sold to numerous clients and none of the units ever left the warehouse.
You are admitting here that SB is selling on consignment. If he calls back product from dealers that will result in a reduction of sales as well as a reduction in A/R. I will go a step further and say that SB never even shipped all the product to his customers. I think he just booked sales based upon his "contract terms". The same 10000 units could have been sold to numerous clients and none of the units ever left the warehouse.
Quote:
I just don't share your concerns about the A/R because
he can always call it back from the dealers that aren't
selling in fact we know he has done some of that recently
that's why the ratio of REVs growth to A/R growth looked
much better this past qtr and ONCI is winning many more
small accounts with its army of 50+ salesman now to
make up for the accounts not selling to keep the
overall growth going for 8 qtrs. in a row now with no
end in sight.
And the High profit margins Onci makes more than
makes up for the short term hit in calling back any
inventory that's not selling.
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