Hardware Store Case Study

Case Study

Opening day ran over $56,000

The owner of this True Value store had been trying to sell it and the real estate for some time without success.  He decided to liquidate because this would give him a better opportunity to sell the real estate which was quite valuable.  The starting inventory was approximately $400,000.  The opening day of our Pre-Showing sales ran over $56,000.  Our sale and advertising brought the real estate to the attention of a good buyer who had to have possession almost immediately.  We had to complete the sale and sell all of the merchandise 3½ weeks earlier than planned. Consequently, we had to take earlier and deeper discounts.  Reported sales were $365.000.  Advertising expenses were held to $4,000 or .011%.  Had we not had to cut the sale short this would have been a profitable sale.