So the “bad news” is shipping and trucking prices are falling as less is being shipped. Bad for whom? Not bad for we at the small business level who compete on design, not on price.
Sooner or later, businesses will try to whittle down their inventories, either by selling more or by cutting orders – and the first just isn’t happening to the extent needed.
The bad news hammers Walmart and big business and those holding stock therein (your pension). Not that shiiping costs ever was much of a factor in international trade, that is to say, the component cost of freight is not enough to make any difference in the final price even if shipping swing 20-30% of cost over time. Freight at $6.50 instead of $5.00 on a $100 item is no big deal.
The big deal is people are not as much buying the junk they were before. The good news is the retailers big question is what is next? So they need to test new ideas. This is wonderful for we at the snall business level, for we can offer those fast and furious, and we can afford to fail fast fail early.
Who cares if buyers are cutting back on their purchases. I’d cut back on junk not selling too. Any buyer smart enough to cut back heading inot this Christmas season, by say 20% of a million, or $200,000 is going to hurt big importers/manufacturers, suppliers, of more commodity items.
On the other hand, those same buyers will have extra OTB to search and lern new trending items, that means money to test your ideas.
CAUTION: If any well-established firm places a large order with you on a new item, refuse it! They know they are going out of business. They are making you a unsecured creditor on whatever dollar amount you ship them. They have zero intention of paying you, and if they can double their money, or merely sell your goods 5 cents on the dollar, they don’t care, they will not pay you. And you’ll come up with nothing. Seen this 100 times.
Legitimate buyers will first ask “what is new?” (you) and next “What is your minimum order?” (your lcl moq fob.) If your offer meets their OTB plan for new, you have a compelling case for them to buy.
Learn more about OTB here... know how buyers work so you can know how to get them to buy... attck their buying plan
http://retailowner.com/Get-Quick-Answers/Open-to-Buy-Calculator
All this is covered in my classes, click the upper right links to some classes, or email me for more information.
0 comments:
Post a Comment