Say you have $10 merchandise which you intend to sell for $20. You store the $10 merchandise at a public warehouse. The warehouse damages, or accidentally destroys your merchandise. They are willing to pay for the goods. Now, do you charge them $10 or $20???

 

Depending who sotred your merchandise and how they damaged your merchandise. Pretty much its all relative.

If it was me probably charge them $20 cuz I really need the $$$ now but if not Ill just get my money back .

 

Charge $20 and pocket the $10 cash difference.

To be serious, though, I'd guess that charging $10 is probably the more accepted way to do it, since I think that's the value that the unsold merchandise is usually carried on the books at. This is strictly talking out of my ass.

Can the goods be readily reproduced for $10?

 

I wouldnt charge them $10 per item,i'm sure it cost more than 10$ per item to get to me.. ( think shipping)

Also i'd charge over what I paid, depending on how high the demand was for those items. (thats just me though)

 

I think you could only legally charge them the replacement cost of the goods unless it could be proven that they had already been sold for a higher price.

That doesn't mean 'intention to sell'.

 

[QUOTE]Originally posted by Muz
I think you could only legally charge them the replacement cost of the goods unless it could be proven that they had already been sold for a higher price.

 

^ Same, you can only charge what the market bares!

 

I missed Business Questions #1-21 somewhere along the line
Will this be a continuing series bud?
I'm not buying that confused look either. Something's afoot

 

[QUOTE]Originally posted by Muz
I missed Business Questions #1-21 somewhere along the line

 

It is the replacement cost of the item. Same way as if you had to right off the damaged goods if you didn't get reimbursed for taxes. COGS