Skip to main content
Help Center Community Shop

Economics, costs and purchasing.

The Dutchman
Our company, like many, is constantly monitoring the economy. The suppliers are not stocking the hard-to-find items that they did in the past. Inventories are kept low and are limited to the items they sell frequently. Many items they had stcoked in the past are special order.

I approached several of our suppliers of HVAC equipment and told them that we were standardizing all of our package systems at every property. They exhibited an increased willingness to sell their equipment for s simple 11% profit! In addition, this was 3% less than last year. Either cash flow is getting weak for these guys OR they don't want to be stuck with large inventories.

Has anyone seen this trend in their business? Better yet, did anyone notice what the news touted as "stores slashing their prices for the Christmas (sorry..holiday) season?"
0

Comments

3 comments

Date Votes
  • Sav99
    Thats the trend in business. Why tie up capitol in inventory or pay floor plan when items can be drop shipped. Warehousing is becoming a thing of the past.
    0
  • raingauge
    We can't keep inventory. The small company I work for watches the economy, the worse it gets, the more we sell. SAV99 probably has it correct.
    I work for a little outfit

    www.wheatmontana.com
    0
  • PanzerSlayer2
    I don't think this is anything new. We standardize contracts all the time for lower margins. It's good to know that we have a steady customer and that we don't have to do anything extra. Any customer we secure is a customer lost by our competitor.

    On the flip side we expect our vendors to take a lower margin if we promise them the business.
    0

Please sign in to leave a comment.

Recent Activity