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Posted by: jay leslie (Mar 23, 2013 2:05pm) |
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I know (not think... I know) one of the major problems why brick and mortars go under is that the owners love magic but not business.
99 percent of the time when I call shops to buy product they have the same two excuses.
#1. "We like to write one check a month, so we buy everything at one place"
#2 "If people call us, asking for your stuff, we might buy one or two of them"
Manufacturers can not make any money by selling one or two of something, per order. There needs to be a minimum order. Constant marketing for one item (unless it's brand new and the flavor of the week) is cost prohibitive considering that distributers make larger orders. Granted, the distributers get a percentage but they have constructed a pipeline of sending 20 new items a week to independent stores. Most operators don't want to take the time to invest in making their own items or to actively seek-out new items on their own, They would rather buy what's being advertised in the magazines and online because it's easier then researching new product. what I'm saying is that part of the reason B&M stored close id due to laziness. The second reason is they are not located in a high foot-traffic tourist area.
Notice how the largest operators advertise a good percentage of their product-line as exclusive. That, right there, is the difference between a company that takes initiative and one that is a push-over.
If a B&M wants to generate more capitol they NEED to sell unique items and/or be in a fantastic location. This is the exact opposite of a business that sits & waits for distributers to tell them what is new and the opposite of most old-time shops that rented a store in the low rent part of town, at the end of the block.
there are sheep and there are sheepherders.
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