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Thin margins, fast obsolescence, warranty claims and high value stock.
Electronics runs on thin margins and high prices, which is an uncomfortable combination. A small percentage of a large number still needs a lot of volume to add up, and any mistake costs real money because each unit is expensive.
Stock goes stale fast. A model that was current in March is discounted by September and dead by the following year. Unlike a jumper, which is just out of season, an old handset is genuinely worth less every month it sits there. Slow moving stock in this category is not waiting, it is depreciating.
Warranty claims, faults and returns are a permanent overhead. Buyers expect things to work, and when they do not you are usually covering the postage both ways plus a replacement. That cost never appears on the sales report and always appears in the bank.
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