Those, who know Neiman Marcus, know that this merchant sells some grand items. It is not your next door Macy’s or TJMaxx; this retailer offers high-quality, premium goods that only few people can afford.
But today, Neiman Marcus didn’t offer another glamorous $300 sweater from a famous fashion designer; neither had it introduced another pair of shiny black shoes. It went higher than that, a move, I would deem epic in a way. This move is the introduction of one of a kind home gadget that only a selected few could ever afford: a 1.5 Million Dollar Outdoor TV!
What is so special about it? Well, this is waterproof and designed by a Porsche team! It is stored underground and emerges with a push of a button on your iPad. The screen’s diagonal is 201 inches and it is over 15 feet tall when in use. It also comes with DirecTV satellite, 300 built-in movies, and a Blu-ray DVD.
The inventory costs would reflect as follows:
Unit cost: 1.2 Million
Installation: 300K
Optional speaker upgrade: 1 Million
However, with this price tag, Neiman Marcus expects to sell only 25 items this year. One of the lucky buyers will be famous LA developer: Mohammed Hadid (partially seen on Real Housewives of Beverly Hills).
I presume at these price levels and quantities, outdoor TVs will be easy to calculate. I would recommend to stick with FIFO cost assumption method as TV prices (like any electronics) are rapidly falling in value. Thus, this natural deflation would help to report less money on the income statement (Net Income) and pay fewer taxes to IRS; thus, releasing capital for other business needs.