Everything Takes Time
Like a good bottle of wine a business takes time to mature. My business partner reminded me today to relax as I work differently to most other people. I have been stressed as he is doing well down in his neck of the woods and I am barely surviving. I am not used to this as I normally have many new clients on the hook as I am still growing the business up here. When I land an account I tend to keep them permanently as the only ones I have lost have been to business closures. The relationship is as important as the price in my mind and why I take time landing accounts as I want them for keeps.
Our company has been going for around 20 years and I have only been a part of it for the last 2 or so years. I had known them for maybe 13 or 14 years now as I was once a good customer. That is why I know the products inside out as I worked with the things I now sell.
I think this is what makes me different to everyone else as the customers I am picking up trust me as I help them at the same time. I have an eye for detail and spot things quickly and advise accordingly in a nice way of course. I want everyone I deal with to succeed as it is in my best interest long term to have these contacts keep their jobs and the companies they are with do well.
Over the short time I have been a partner in the company I have gained the trust of everyone I work with. Sometimes my biggest problem is I don't lie and in a way is a rare asset which has helped me more than hinder me. Telling someone the truth is not always the best policy when you are trying to sell them something, but if you lie and cheat you will be found out.
This week I have seen a client who was retrenched and has now been at his new company for two months. We had a great catch up chat and managed to work out an agreement so I could supply them. It turned out that the one company is in fact 3 different companies with multiple branches around the country. Sounds great but not ideal as the volumes are not massive and could be more of a nuisance account if other things are not bundled in. Transport is not cheap and you don't want your profit being spent on the delivery and all you are doing is a favor. I am still doing some number crunching and squeezing them for a shopping list as I need more items in order to make it worthwhile.
source The market is saturated with empty warehouses currently with many more joining the to let stock over the coming months. Possibly a good time to buy a commercial property at auction early next year as banks will be under pressure to offload them.
Another client who was retrenched I am seeing tomorrow and chatted with him today. His last job was running a warehouse that supplied take away coffee cups which was not exactly a great seller during lock down like it was before. His junior manager was let go in March and he managed to hang on until the end of September. The set up he has gone too is far more promising business wise and he has already advised them he will be changing suppliers.
This time of year we would normally see the average monthly order double as the festive season pre orders kick in and business ramps up. My coffee cup company has taken only half their normal order and expects that till last till February. That is 3 months so they are literally down 90 percent and no wonder they have been getting rid of staff.
If companies are going to survive then they need to diversify and not specialise. In the past having a niche business was profitable, but now if that niche is not generating your income then what. Coffee shops and restaurants were shut for such a long period of time and have only recently been open again. The change is not only that though as it was something you bought out of habit on the way to work, in my case anyway. That is a luxury item today and the first thing that goes when you are tightening your budget belt.
I think it is pretty sad looking at the devastation in the market place right now as everyone is counting the lock down costs. This is far from over and only the beginning of the rough ride as looking at what is happening now many businesses large and small are going to vanish over the coming months.
source They didn't last long all 57 stores and 3 offsite kitchens vanished and gone for good now on auction. Starbucks sold their entire 13 stores for less than it cost to open one store.
Businesses thankfully are now looking at their running costs and expenses which they should have been doing anyway. You will be shocked that for many this was not a priority as business was just too easy and those expenses were a cost incurred written off to the tax man. With things being tight it has opened the door for the likes of me to come in and help. I have always ran a tight ship as I know how expenses can run away with you crippling cash flow. In my industry packaging happens before you sell an item so people need to be smart and understand how and why savings happen.
I have lost one medium sized client so far who was in business for over 30 years. I knew their problem the moment I saw the operation and saw the prices of things they were paying for. Their profits were coming in the front door and were leaving via the back door yet they couldn't see it. At the time I had no idea they were in financial trouble but what amazes me is that no one from the senior management team came and worked the floor to understand where the problems were. This in my mind is crucial as many so called managers don't understand their business as they are not hands on.
I was asked last week what a warehouse operation in the UK would need staff wise. I asked the questions regarding stock receiving and deliveries etc and gave them a number of 6 people. That same warehouse with a similar operation has over 40 people doing that work here as people have got lazy. What happened to doing multiple jobs and working as a team? It is not surprising then if many will close their doors before Easter next year as I just don't see the ones struggling now making it.
