WEBVTT
Kind: captions
Language: en
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In the previous video, you created your inventory
and expenses spreadsheet and recorded important
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data.
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Now, it’s time to determine your current
stock and profit margins.
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You could manually count each item or calculate
the differences one by one using the spreadsheet
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data.
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This might be feasible when you’re
starting out, but as your business grows,
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it would get time-consuming.
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With Google Sheets, you can determine the
items in your inventory with a formula.
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A formula is a mathematical relationship expressed
in numbers. Using a formula means you don’t
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have to manually subtract, add, or calculate
a list of numbers.
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This saves you time and limits errors.
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To start, add a formula to Column D:
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Current Stock.
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This will show the difference between your
Original Stock and the Total Sold for each
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item.
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Formulas in Google Sheets always start with
an equals sign.
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Enter the formula to find the difference between
the number of products you started with and
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the number sold.
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Subtract the “total sold” cell number
from the “original stock” cell number.
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The formula is B2 minus C2.
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When you press enter, the “Current Stock”
column shows the number of items you have
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in stock.
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To copy the formula to the entire Current
Stock column, click on the cell containing
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the formula.
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Then, grab the handle in the lower right-hand
corner, hold it, and drag it down until you
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reach the bottom of your list.
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When you release the handle, the cell references
update to indicate the correct totals, based
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on the formula.
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Some results may be positive; some may be
negative.
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To make sure nothing was mistyped or miscalculated,
double-check your work.
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You used a formula to calculate the number
of items in your inventory.
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This will save time as you build your online
business.
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Use an equivalent formula to determine the
margin for each item.
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The margin is the difference between the item’s
cost and the retail price.
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A high profit margin indicates a big difference
between your cost and the retail price -- which
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means you're charging customers fairly and
making your products cost-effectively.
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A low profit margin -- with a small difference
between your cost and the retail price -- is
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a signal to re-evaluate your expenses or what
you charge customers.
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In the “Margin” column, type in an equals
sign.
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Then, subtract the Cost Per Unit from the
Retail Price.
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In this case, the formula is F2 minus E2.
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Press enter, and then drag the formula through
the entire column.
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Now, it’s your turn:
Add a formula to the Current Stock column.
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Drag the formula down the list.
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Add a formula to the Margin column.
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And drag that formula to the bottom of that
list.