Retailers are making returns harder. A carpet seller taught me why that’s a mistake | Gene Marks

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2026年7月10日 3条评论

A standard business practice offsets future costs by funding a reserve for returns – but many small businesses don’t do it

In my 30-plus years of being an accountant I have learned many business lessons from people who were much smarter than me. Jerry Crawford was one of those people. Jerry taught me about product returns.

Jerry – who sadly passed away a decade ago – sold carpets wholesale from a nondescript little building in south Jersey. He employed about 50 people and counted many local and national carpet retailers as his customers. When I reviewed Jerry’s books, I noticed a large reserve for “returns”.