Inventory Flipping

If you’re in the inventory business, you'd better be flipping that inventory like hotcakes.

Inventory flipping is buying-then-selling inventory, and fast—before it depreciates and loses value. Whether it’s your grocery stores selling produce or your neighborhood real estate agent flipping houses, inventory flipping is everywhere you look.

Well, everywhere there’s a middleman making a buck, anyway.

Different types of inventory age and depreciate in value at different rates. For instance, most cars depreciate a lot—like a steep cliff on the graph—once they’re driven off the lot as "new." From there, the value of the car declines more slowly. If you’re in college...where they’re always coming out with a new version of a textbook—you’ll only want to buy and sell your book if there isn’t a new version that will make your soon-to-be-outdated version virtually worthless.

Flip it—and fast.