By Richard Russell
This new version of old dealer publication Collector's fee consultant presents readers with the knowledge and values to carve a distinct segment for themselves in a industry the place infrequent first variations of Jane Austen's Emma and J.K. Rowling's Harry Potter and the Philosophers Stone lately bought at public sale for 254,610 funds and 40,355 cash respectively. equipped in thirteen different types, together with Americana, banned, paranormal and secret, this consultant discusses picking out and grading books, and offers creditors with info for settling on and assessing books in 8,000 listings.
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6 shows customers ranked from left to right by sales volumes (left-hand axis) and the margins earned from them (right-hand axis). Applying the normal rules of giving better discounts to the best customers would suggest the margin curve ought to slope smoothly up to the right in a mirror image of the sales curve. Instead, what we find (taken from a real case) is that there are some customers at the far right-hand side with the smallest level of business delivering margins as low as the distributor’s best customers.
Additional functions include providing market information and serving as an outsourced front office, representing the supplier in a territory, or outsourced service and support function, providing warranty and technical backup and support services to the final tier or even end-customer in certain circumstances. As suppliers increasingly move to focus on their core activities, they have turned to distributors as the logical partners to whom non-differentiating activities can be outsourced. As these activities themselves have varying investment, cost and margin profiles, distributors are segmenting their businesses to offer specialized services from discrete divisions.
You will inevitably find yourself comparing these to the measures in your own business or that of your partners, so please heed this health warning: Be Very Careful – use comparisons to raise questions, not to provide answers! Despite the best efforts of the accounting profession, there is still much more scope for accounting for the same thing in different ways that you might imagine. And because businesses are so different, it simply isn’t possible to tie down one way for everyone to keep score consistently (which is one reason why financial analysts are paid so highly to interpret the accounts of public companies even though they are the most regulated of all published accounts).
Antique Trader Book Collector's Price Guide by Richard Russell