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Credit crunch, take advantage

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  • Credit crunch, take advantage

    Theres been a lot of worriers about recently that the CC will take its toll on small business, and Ive no doubt it will.
    Yesterday I got an E-mail from a rock and crystal supplier, who I use quite a lot, offering a 50% discount, the usual is 35%.
    I E-mailed back saying I was fully stocked on that side of the business, so thanks but cash is needed for other areas.
    This mornings E-mail is offering the 50% plus whatever I buy he will double the order! this if Im right is getting down to a whopping 75% off his normal wholesale price, and that I am sure is around his cost price.
    Now if hes just having a cash flow problem then theres nothing to be worried about. But if his suppliers are starting to panic and lowering the price, then I can see the UK market being flooded with very cheap stock of all sorts, as when one panics they all do.
    This will drag the retail price down to daft levels, the % profit will go up but the actual profit will fall (75% of a £1 sale does not compare with 50% of a £5 sale)
    I have the problem now of, do I hang fire and see whats going to happen or do I scape together all the cash I can to take advantage of the situation. I think the only thing I have left to sell is my beloved Marlin Roadster ( a tear in eye as I say that)
    Anybody else spotted any strange trading pattens. Info is god in times like these.
    Excuse spelling, nets not about this morning to put it right

  • #2
    buy buy buy! I heard a good quote yesterday, from the ritchest man in the world. 'When everyone else is greedy, be cautious, when everyone else is cautious, be greedy' ie when your supplier is being sooooo careful about keeping customers, take advantage! When hes being greedy and putting the prices up, walk away, and if everyone does the same thing, the credit crunch will be sorted in no time. I know its doesnt make much sense but it will work.
    Its like house prices, they kept rising and rising till no-one could afford to buy a house, then they plummeted, and they still will, until they reach a price where people can afford them again. Then when people start buying again, they will start rising again!
    Im just not even talking about crafts now! sorry xx
    I like to make things - usually a mess!
    Please look at my stuff and let me know what you think!
    http://elephantfrills.blogspot.com/

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    • #3
      Hi,

      I agree with lauralou1601. If you have money to spend when others don't you have an excellent opportunity to stock up and when things get better (and they will) you will have a higher % profit for being savvy. Now where can I get more money???

      Terry
      Terry xxx
      You can't have everything. Where would you put it all?" - Steven Wright
      Website Twitter Facebook Blog Folksy

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      • #4
        Your both right, but then the big problem is money. we carry around £10000 in stock, and are pretty well stocked up at the moment. Then xmas is just around the corner and Net will be wanting to stock up on all the sparkely things.
        Forget borrowing the best offers about at the moment are about 7% which is too much/ bank robbery, Im getting too old to do the getaway.
        Maybe the way is to hang fire then see if a sale or return offer comes. That happened to me in the seventies, a luton van full of stock, that I paid for as it sold, then just took the dead lines back to the guy. He did go bust a few months later,
        Times are going to get interesting me thinks!!

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        • #5
          Hmmmm interesting. A supplier (that admitedly I don't use very often) is closing down and the other week I went to their warehouse and bought some stock at 75% discount...I always thought the RRP for their items was very pricey so I'm selling them much cheaper and still getting a good mark up on them - so it's a win/win situation for my customers and me. However, cos it's not my usual stuff I didn't buy loads just in case it didn't sell cos I'd then be stuck with it.

          Unfortunately my suppliers in Europe or those who source from Europe are putting prices up at the moment because of the strong Euro against the Pound. Although having said that one of them is doing a big wholesale sale event soon and it did cross our minds that they might be experiencing cash flow problems at the moment due to it all.
          Visit Natty Netty for a huge selection of Iris Folding supplies

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          • #6
            I'll buy at low prices whenever possible even if it means from someone else who's unfortunately going bust - so long as I've the cash. It will sell next year if not this, and I've no real problem with storeage.
            Best wishes
            Teresa
            http://www.craftbox-cards.co.uk

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            • #7
              I'm transferring my stuff from my website to Etsy - if I'm paying in dollars I might as well sell in dollars! That probably doesn't take close inspection, but it works for me!

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              • #8
                Urbtaf, you seem to me to be a very sound' sensible couple. (stop polishing the halo's) I am sure you will do the right thing in the end. I do hope you can afford to invest and sit on the stock for a year or so they you will make a killing. But if you don't have it spare its not worth the worry.
                Carol
                God helps them that help themselves.

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                • #9
                  That's a hard one.

                  Is it something that you are likely to sell? There is no point in buying it if you are not going to sell it. I know this sounds really silly but I often buy things 'cos they are cheap and then realise that I have been a bit stupid!

                  I am sure you and auntynet will make the right decision though..........
                  www.beadlab.com

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                  • #10
                    Hmmm LOts of my suppliers have put prices up - mainly the big companies, I am still getting decent deals on small stock amounts from what i call my "middle men" suppliers but i have now shopped around quite a lot for bigger and better deals simply so that i don't have to increase my prices to my customers. I am making less money than a lot of other similar companies but my sales are increasing by the month and so turn over is rapid at the moment.

                    I think that there will be more new businesses wanting to try their hand because people are loosing their jobs, there is no work for a lot of sectors and this is set to get worse i think - there will be pressure on families to have both parents working and, business' are formed so that we can sttay home, be with the kids but earn some money too.

                    There will be some suppliers that just can't cut it though and there are a lot of small business' buying from companies that are suppliers rather than importers or manufacturers - costs are always more - its a tough market to be in.

                    Would i be tempted in this claimate to have all of my money tied up is stock that may sit and not sell - well thats never good business really so unless you can find a way to market the stock over and above what you do already and the turn around is quick then you could be bucks in - otherwise and if you aren't willing to work at offloading it then If I were you i'd want to hold onto my roadster.

                    My otherway of thinking is that if he is selling off his stock its because he also struggled to sell it at the right price???

                    Ahhh that sales tactic again - works nearly every time. I would only buy if i was really confident that i could shift it - I'd have to do a test sell on ebay to see if i could shift it before i bought - so rather than using them to make something as i think you do, pass them off on a mini wholesale basis.

                    Good luck
                    Last edited by thatbusinesswomen; 26-09-2008, 11:18 AM.

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