I have a question about some texts related to marketing.
Hello, I am reading some article about marketing. I have some part I am not sure about.
I cannot really get the meaning of "how are you going to pay for the needed inventory." What is the needed inventory here?
My understanding is the Super Market A made a bid order from a reader's company, but since the payment is not neccesarily done in 180 days, they can return unsold products to the reader's company. Then, the company is going to be make amends for the unsold items and need to sell them somehow. However, in most cases, the reader's company will end up in having a debt...Am I missing something else or wrong? I would really appreciate it if you could help me in this! Thank you very much in advance.
"Think a big order from Super Market A is a godsend? Be careful. Since they're almost always net-180+, and they can return unsold product, it could actually be the death of your company. How are you going to pay for the needed inventory? Typically, debt."