Where We Belong

Long ago, working in glassware, I found an opportunity to make a quick and easy few grand by slapping logo images for an event onto Libbey Glass, mostly as a favor to a Museum I had as a customer. The Libbey sales rep was quite accommodating, as was Libbey Glass. I shared with the rep my wholesale prices, and he quickly figured out I was making about $250 an hour on the deal. So I asked him why Libbey did not go around me, and cut me out of the deal?

The answer of course, is although the sales rep may be making only say $40 an hour, to make that $40 he has to sell about $10,000 in glass, every hour every day. Billion dollar businesses like Libbey have reps spending days working on quarter million dollar orders for chains and mass merchandisers and simply cannot take the time to spend 12 hours on a small order to a museum. Given Libbey’s overhead, they would lose money. On the other hand, I can make money where they cannot.

There has always been that empty space where we at the small business level may provide a value. Given the depression we are heading into, that space has been enhanced, and I want to make sure you all understand what and where it is.

As you all know you are free to email me with questions, and I try to put them up on the blog when I can, and if the questioner agrees. I have been assisting quite a few people lately, one in particular starting a wine export business, a case in point regard in the above.

Take Constellation Brands, the worlds largest wine producer is selling off most of it's low-end lines to reduce debt.

In the wine industry, there is a 5 million dollar a year product demand that is presently unmet. The net profit will be some $500,000. Constellation Brands would lose money pursuing any product line that gained a mere $500,000 in net, given the cost of their bloated, boom infrastructure.

On the other hand, one person working out of a small cheap office as a wine negociant can spend a year of his life developing this one product area and earn $500,000 gross on 5 million in sales. Nice work if you can get it.

For people who’ve studied what I teach, this is nothing new. I mean only to reiterate the points given the new circumstances, and lay out the relevance today. Self-employment directs your whole resources to your own well-being... but there is a paradox, the more you serve others, the better you do. It was true in boom times, it is true during this bust.

Forward this to anyone you want. WE have to save this country from the government.

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