As the famous old song would have us believe: Money makes the world go around. But does it really? Here at Haddon & James Online Auctions we believe that is almost the truth. It is not money, as such, but sales and the redistribution of goods and services which keeps everything moving.
All over the world, personal relationships, local communities, entire business sectors, governments and global corporations are driven by the use, reuse, exchange, swap and negotiation of words, strengths, expertise and production. And wherever there is trade, in whatever arena the transactions are made, the level of activity will be driven by one factor in particular: excesses or shortage of supply.
This is where we come in as an operation. Because perfectly balanced supply and demand in any system is a virtual impossibility. Any manufacturer or producer of goods and services who plans to make ‘enough’ is missing a trick and will not survive in today’s fast-moving, sales-driven world.
The key to making a profit, as a business, is making more than you need!
Overstock makes the world go around!
It might seem like odd logic, to the uninformed, to make more than you think you can sell – but let me explain. If your research tells you that you can sell 1000 of a particular item, over a three-day period, and when the time comes you outperform – consider the consequences. Let’s say you sell your full stock of 1000 pieces early on the third day – you’ll be left sitting there, wasting your selling resources with nothing more to sell. On the other hand, if you had arrived with 1500 items of stock, you might have been left with around 200 at the end of the third day.
That represents a seriously increased bottom line profit, if you have your selling prices right.
Before looking at how the surplus should be handled, it is only fair to examine the alternative scenario. What if you only sold 800 across the three days and ended up with an unsold 700 – almost half of your original total? How can that be a smart decision? In both these situations, the answer is simple. First, you use up every available opportunity to clear the stock, after the initial sales event. Then, if you still have some left-over, you simply pass it on to someone else, at cost, and let them sell it.
Yes, there are companies out there who exist specifically to take excess stock from manufacturers, wholesalers and retailers, and find the right hungry crowd. We know these people exist, because we are one of the best at it!
Perfect sense for the right market.
Consider the scenarios described above again. Because any excess is ultimately sold on at cost (or just above) there is no loss of profit. And even selling at a small loss might be worth the effort in some cases – especially if it is offset by the additional profit the extra sales contributed.
The reality is that in almost every case there will be two markets for any goods or services. The people who only buy the latest goods, from the high street, and who want the next new thing as soon as it comes out. And those who are happy with last year’s model at a price significantly lower than it has ever been sold before. These people represent our hungry crowd, and our customers’ customers.
Oversupply is a fact of modern commercial life…
The proof of the viability and practicality of this principle is there to be seen all around us. Supermarkets hate to have empty shelves, and special offers usually come with buy-two-get-one-free offers or discounts for bulk buys. These tactics are common throughout the commercial world and in the performance of all successful organisations.
In personal relationships, those who give a little more are those we value most. Communities and Governments that provide for everyone and don’t hold back get voted back into office every single time. And the biggest businesses in the world didn’t get there by being small in their supply.
Would you like to benefit from the ongoing critical requirement for people and businesses to generate excess? The need will always be there, in fact our experience is that it is growing at a startling rate.
Why not find a hungry crowd, buy some stock and start sharing the excess around for a profit?