WEBVTT
Kind: captions
Language: en
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In the previous video, you created
your inventory and expenses spreadsheet
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and recorded important 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
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or calculate the differences 1
by 1 using the spreadsheet data.
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This might be feasible when
you’re first starting out,
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but as your business grows,
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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Using a formula means you don’t 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: Current Stock.
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This will show the difference between
your *Original Stock*...
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...and the *Total Sold* for each 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
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of products you started with and 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”*
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column shows the number of
items you have in stock.
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To copy the formula to the entire Current Stock
column, click on the cell containing the formula.
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Then, grab the handle in the
lower right-hand corner, hold it,
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and drag it down until you
reach the bottom of your list.
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When you release the handle,
the cell references update to
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indicate the correct totals, based 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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A *high profit margin* indicates a
big difference between your cost and the retail
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price -- which means you are 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
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retail price -- is a signal to re-evaluate
your expenses or what you charge customers.
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In the *“Margin”*
column, type 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.