Unless you've owned a business, you may not understand this but whenever you sell something, you never sell it for anything less than what you can replace it for. Even if it's old stock, when the price goes up from your distributors, so should your prices. This is how you continue to operate in the black and grow.
No Flash, this is how you SCREW the customer and if he finds out about it you won't grow, you will lose the very base customers that you relay on to keep you in business.
What you are saying is the very thing the oil companies have been doing for years.
We all know how we felt about that $4.00 & $5.00 a gal gas.
They had thousands & thousands of gallons in bulk storage tanks bought at a bulk price much lower then it was selling for.
As the the price of gas went up so did theirs.
The only problem was they did not pay that increase because they already owned it at a lower price.
Nothing but hidden profit.
Once that supply dried up then and only then did they pay the increased price.
That is a FACT!!!
I run a very successful business and I can tell you that I do not raise the price of my invetory whenever the factories takes an increase.
That is just wrong!
When you replace said inventory then you raise the price to cover any increase you may have incured.
Now if you don't care about repeat business and plan on moving out of the area in a few years then go ahead and do it your way.
Your business won't last long because people will learn that you are nothing but a cheat and they will tell their friends.
We are dealing with third generation customers from the same families that my dad dealt with back in the 50s.
There is only three ways to build a business.
1- You have a better product at the same price as the cheap stuff.
2- You have a cheaper price than anyone else in the area for the same product.
3- You treat people fair, make a little profit & don't screw them and your business will grow.
It will take longer to build that business, but you will still be there when all the others have moved on to someplace else because no one will deal with them anymore.
AND THAT MY FRIEND IS ANOTHER FACT!!!
We built our business from $18,000.00 a year in 1967 to just over a million $ a year in 1996 by doing business our way, the old time way, the right way!
One last thing.
When ever I go out to buy a product, I look for people that run their business that way and I stick with them.
Sure we are hurting the last year or so, just as everyone else.
The only difference is I am still here and in no fear of losing my business as it is all paid for.
I owe no one a dime!
There are many in my line of business that have gone under trying to do business the way you suggest.
LONGTOM
