Thesis, Antithesis: Synthesis

Pax has improvised a solution to the risk question, and not the very important point that she is doing the supplier a favor limiting their risk as well...

Hi John, Thanks so much for your quick feedback. All three suggestions forced me to think the thing through from a different perspective. I see now I wasn't thinking very creatively about how to manage the risk. I'm going to go with option 2 -- splitting the order into several smaller shipments. The smallest order I can do for this product is about $10,000. But what I can do is order the goods, paying 30% or $3000 down, as per the manufacturer's terms. I'll have the manufacturer send me a sample by Fedex to test myself (much cheaper than SGS, I think). If the quality is good, I can proceed with the final payment and shipment to my client with confidence. If the product doesn't work out, I'm only out $3000 -- not the end of the world. The total amount of the order, if done all at once, is about $60,000 so by comparison this is pretty minimal risk. Then I'll gradually increase the orders until I'm satisfied the manufacturer can consistently deliver a quality product. Nice thing is , after thinking over your options, I approached the manufacturer with the idea of starting small and building successively larger orders and they seemed happy. This is a new product for them too, so it helps them minimize their risk, too. Thanks again for your help! Now I can quote my client without worrying about spending months tossing and turning at night, worrying about blowing $60,000 that I don't have. Cheers, Pax

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