What should I ask about a massage supply store’s table and oil inventory turnover?
Ask how quickly tables and oils sell, which items sit longest, and how the store tracks stock. Large furniture moves slowly, while oils and lotions have a shelf life. Request an inventory report by category, with purchase dates, so you can see what is fresh, what is aging and what may need clearing.
Start with the count. Ask for an inventory listing by category, showing quantity, cost and when each item was bought. Compare it with sales for the same period. Tables are bulky and may sit for a long time, while oils, creams and linens may go off or fall out of favour. Ask how the owner values old stock.
Then ask how the store buys. Does it order in bulk to get a better price, or in small batches? Does it carry stock for therapists on short notice? Ask about seasonal bursts, such as back-to-school or the holidays, and how the owner plans for them. Your accountant can help you read the inventory figures.
Finally, ask about returns, damaged goods and what is on consignment. Find out whether suppliers offer return terms, and whether any stock is financed. Walk the shelves and storage and check dates yourself. A store with tidy, well-tracked inventory is easier to take over than one with a back room nobody has counted. Ask for a physical count close to closing and compare it with the listing. Differences between the two are common, so agree beforehand how they will be settled and who will do the counting.
Key takeaways
- Request an inventory report by category with cost and purchase dates.
- Identify slow-moving tables and oils with a limited shelf life.
- Ask about returns, consignment and any financing on the stock.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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