Keeping What We Have


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I think the last 6 or 8 months of business has been a test of not growing, but maintaining what you already have. It is a bit nuts that suppliers won't change but if things don't go quite right they threaten to move to someone else. I know they have another supplier who they used before us chomping at the bit trying to get the business back. They may be a painful customer to have, but it is money in the bank. Maintaining what you have is all you can do right now and hanging onto it is a must.

A few weeks ago one of my customers asked for miracles and some hoop jumping as they had not checked how low they really were and ran out of stock. I understand it is easier to blame the supplier than your own short fallings on your end.

The truth is and I have told them the same story is no one knows from month to month how busy they are going to be. Ordering what you used the previous month on a model stock system works when you have a constant stream of regular clients but not right now.

This was the second month in a row that they ordered when they had run out already putting pressure on us the supplier. They are not the biggest customer we have but the profit margins are really good and not someone you just lose. I hate the chaos and rushing not knowing where we stand because they don't check their stock room regularly.

What I have now done to guarantee the business is to arrange a 10 percent float supplying extra stock that must be stored separately which will ensure buying us time to manufacture and deliver their order. This ties them in as they are already using the following months order when they start using the 10 percent consignment stock or float. Normally I wouldn't do this as they should be ordering more covering any shortfalls which shows you where we are right now. When I bought supplies for my old company I always had enough and never ran out. This also tells me the caliber of people they have working there including the buyer so I am doing his work for him.

They think we are doing them a huge favor but in reality we have had enough of how they order blaming everyone else each month. Profit wise they are like two clients rolled into one as the items they order are specialized which somehow means you can charge special prices which never quite made sense as in plastics everything is charged by weight except for special items or orders.

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