Run The Numbers
OPPORTUNITY COST CALCULATOR
 
Example below is using variable amounts entered in transaction amount, yearly sales, and average profit margin (highlighted). Enter your own numbers and give it a spin:
 
  $   dealer cost transaction amount of slow-moving parts sold
  $   cents on the dollar paid by buyer
- $   fee %
- $   shipping amt %
- $   total expense (discounted price of the parts + fee + estimated shipping amount)
  $   net cash
 

Profit lost per year when retaining obsolete parts
 

Profit lost per month when retaining obsolete parts
 

Profit lost per week when retaining obsolete parts
 

Profit lost per day when retaining obsolete parts
 

Profit lost per hour when retaining obsolete parts
 

Profit lost per minute when retaining obsolete parts
 

ROI lost when retaining obsolete parts per year
 
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  $   net cash available to reinvest in fast moving part$
x $   sales per year of fast moving parts re-invested in
  $   gross sales realized from reinvested cash
 
  $   gross sales realized from reinvested cash
x   national average profit margin% *
  $   gross profit realized from reinvested cash
 
  $   gross profit realized from reinvested cash
- $   net loss (listed above)
  $   net gain (loss) realized from reinvestment in fast moving parts
 
  $   net gain (loss) stated above
÷ $   initial investment amount (listed on 1st line above)
    net return on your original investment above  
 
 
* Calculations based on figures from Mike Nicholes “Professional Inventory Management” (2005)