Sunday, November 23, 2003

We are buying a business!

Re: [spiers] We are buying a business!

Sorry about the delay, here is my reply!


In a message dated 11/16/03 2:34:04 PM, kismetzz@yahoo.com writes:

1. We are definitely thinking about moving all the inventories to a

pick and pack service (they have their own warehouse now).

Currently, the product are made in 2 European countries and a

country in Latin America, so we are thinking about finding a P&P

service in the east coast.

***Get your competitors catalogs, and see where they have the "FOB point" for
their products in the terms and conbditions of sale. That might help narrow
down WHERE to have your pick and pack operation.***

However, these countries are not the best

places to have our product made because our competitors are going to

China and other asian countries.

***Make sure they are truly competitors and not low budget versions of what
you sell. What do YOUR customers say about the product? Are YOUR customers
saying "the same comes from china"?***

We would eventually go to Asia too

but then, do we relocate our P&P back to west coast from the east

coast since it's closer to Asia then or should we simply locate

ourselves in the west coast from the very beginning?

***Again, assuming you have the source right, then where are your competitors
warehousing?***


2. The P&P services also provide customer services like a telephone

line and a customer service representative to answer phone calls and

take orders and so on. What do you think about the quality of these

services? Are they worth outsourcing if we just want to devote more

time in product development and marketing, without having to worry

about the sales and logistics departments?

***Well, these service orgs will always do more and more... it is really your
independent sales reps who should be doing the sales, not your warehouse.***

John


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