The last few weeks business wise have possibly been the most frustrating of the last 18 months. During lockdown business was up and down and that was understandable so you cherry picked the risk free orders selecting the companies that were solvent or cash only orders.
They have the monopoly as there is no one else so you have to accept how they run their business whether you agree with it or not.
Last week we were informed by our one and only raw material supplier SASOL that there was going to be another price increase from the 1st November and is the 3rd month in a row that this has happened. One of our clients obviously got wind of this and tried to get us to agree to the old rate until next year which we obviously couldn't. We have managed to acquire roughly 10% of what we need right now which is the frustrating part.
This is a common practice as the less they supply you before the increase the more they make. They are guaranteed bumper orders come the 1st of the month as every manufacturer has run out. This is holding companies to ransom and is not ethical, but then what business really is? The supplier is a government controlled entity with no competition as they have priced the others out with huge import duties.
I hate turning business away but believe everyone who is manufacturing our product is having the exact same problem. This week I had meetings line sup which Ii had to postpone as the concern was they might place orders. Crazy I know but that is how we all have to think otherwise you look like you cannot deliver and only have failed promises. Our factory has been shut down this week as we have to obtain raw materials first and then schedule accordingly prioritizing by demand and payments.
I have very rarely turned good business away and keeping orders on hold seems just like that as it is profit that could be in my pocket. Normally the business closes around the 12th December each year for a 3 week break but that is looking more like a two week shut down. I expect prices will be rising again in December and January or if we are lucky just January. Increases of 36% in the last 4 months is no joke considering how fragile the economy is.
This year the business was better than last year so far but not by that much and not something you would be happy to see next year. Another year of this will not work as if you aren't earning a salary you are basically working for free. The projects and developments in the pipeline have been a slow process which is nothing we can control as we are waiting for the go ahead. Luckily we haven't got the final nod on those new clients yet as we would be short delivering if that was the case. My one client will take two link trucks right now and pay cash up front but I cannot help him.
