superkings_preview.thumbnailKevin Jones, who runs a shop in Hawarden, Clywd, has identified another tricky detail when the VAT rate jumps back up 2.5% to 17.5% in January: price-marked stock. In particular he is thinking about tobacco products, where the margins are already thin.

Obviously, stock management from now to December will need to be good. Cigarettes are a product with a relatively high stockturn (you need to be sure that you sell through all your price-marked stock), which means that planning your buying ensures you avoid problems.

Risk management requires planning ahead and attending to the detail so that you avoid losses. It doesn’t increase your wealth but it simply has to be done.