Picture(s) thanks: 0
Results 16 to 26 of 26
Thread: Sand paper man is closing
-
16th May 2024, 08:16 PM #16
One of the benefits of a free enterprise system. Same has occurred with deregulation of many once highly regulated markets supposedly to promote competition. The fixed customer base "supports" multiple duplicate administration structures, billing systems, infrastructure etc. so the deregulated market devises new methods to promote growth - which really means charge the fixed customer base more. We have seen retailers, who are actually resellers, fail as their margins disappear because they have little control over the pricing structures.
Mobyturns
In An Instant Your Life CanChange Forever
-
16th May 2024 08:16 PM # ADSGoogle Adsense Advertisement
- Join Date
- Always
- Location
- Advertising world
- Age
- 2010
- Posts
- Many
-
17th May 2024, 01:04 AM #17
Almost all areas of business are now dominated by a small number of firms - oligopolies or even monopolies.
They are often called “category killers” and their primary business objective is to kill smaller competitors. They talk about vigorous competition, but it is just talk. Staff openly walk around smaller competitors with their clipboards noting prices - price matching? Or threatening behaviour - “you have the temerity to compete on price and we will squash you!”
Their marketing is designed to impart the illusion of competition.
-
17th May 2024, 08:33 AM #18
-
17th May 2024, 09:50 AM #19
That is why we desperately need the Mum & Dad businesses that provide excellent service, with exceptional knowledge and advice because they actually have considerable experience in the market / trade. It is well worth the small price premium to receive that support.
We all know the (lack of) depth of knowledge available in the larger tool retailers.Mobyturns
In An Instant Your Life CanChange Forever
-
17th May 2024, 02:07 PM #20
When trying to sell a small business as a going concern the stock on hand is one component of the price, but so is customer "goodwill" which is very hard to put a value on. The seller assumes that all existing customers will stay with the business, and puts a considerable value on this. In reality, "goodwill" can simply evaporate in no time if customers don't take to the new owners. A few years ago we had a coffee shop/restaurant in the village which was THE place to go. Owned by a local for many years, always packed out, customers queued up outside waiting for a table, definitely the place to mingle. I'm sure the owner had plenty of healthy turnover data, customer "goodwill" was off the charts, and he eventually sold up to move on and do other things. For whatever reason, the new owners didn't click with the locals (prices went up, serving sizes went down...), and within 3 months the entire local clique had relocated to a new cafe over the road. Within 12 months the previous centre of village life was virtually empty, back on the market, it took over a year to sell (likely for a fraction of what had been paid for it), closed down completely, and later re-opened as a new (and very popular) Thai restaurant. The punters can be VERY fickle !
-
17th May 2024, 02:55 PM #21
-
17th May 2024, 04:03 PM #22
With a lot of businesses the biggest asset, by far, is goodwill.
I was a customer of a very busy coffee shop and cafe that had a similar fate. It was started by an "absolute coffee nerd" with a pre-WW1 coffee roaster and they roasted coffee most mornings - cafe smelled wonderful! It quickly evolved into four inter-related businesses.
* Wholesale business selling beans and ground coffee to cafes, restaurants and specialty stores,
* Retail sales of beans and ground coffee,
* Wholesale and retail sales of specialty teas, and
* Coffee shop - a very busy little cafe.
Then the owner wanted to retire and split the business into two and sold both halves.
The wholesale coffee business was sold to one gentleman who moved it to an industrial estate.
The tea business, retail coffee and the coffee shop/cafe was sold to someone else.
Both were thriving businesses and, I presume, included healthy allowances for goodwill.
Now, the wholesale coffee business is thriving. The owner tells me that, unexpectedly, many of the retail coffee customers approached him and he then established a retail delivery service. His business's goodwill has undoubtedly grown.
The cafe is still existent but with very few customers, all of the old staff have left and the retail coffee sales and the tea businesses have disappeared. Their cafe coffee tastes like a supermarket blend. Their goodwill must now be a negative number - so sad. Every time I pass the cafe I expect to see a closed sign!
The punters can be very discerning. Some owners are in the wrong business.
-
18th May 2024, 11:43 AM #23
One of the issues we have in selling our business is that goodwill is not worth very much.
We are not like your local garage where you supported the local mechanic and his crew and built up generations of loyal customers and goodwill. Back in the day you did not venture anywhere else.
Since the start of the internet this has changed the way people shop.
They are always looking for the cheaper price so no loyalty there.
We do have a good following but if we were not around then our customer base will shop elsewhere.
As mentioned above we also do have a good local following , but I do know that there is a very fickle part that do shop around for that extra $ cheaper.
When we do retire and they don't have easy access to our shop and have to do all their shopping online then maybe they will realise how good that actually had our service and advice we freely gave to them.Jim Carroll
One Good Turn Deserves Another. CWS, Vicmarc, Robert Sorby, Woodcut, Tormek, Woodfast
Are you a registered member? Why not? click here to register. It's free and only takes 37 seconds!
-
18th May 2024, 12:40 PM #24GOLD MEMBER
- Join Date
- Jun 2003
- Location
- Sunbury, Vic
- Age
- 84
- Posts
- 2,727
Businesses like yours, Jim, are not appreciated until you are gone and then Jo-Blo bellyaches like hell.
Tom
"It's good enough" is low aim
-
18th May 2024, 08:02 PM #25
-
19th May 2024, 10:23 AM #26
I hope for your sake Jim that you do get your wishes and can sell but I also hope the new owner continues the same business model. I also hope they keep the shopfront where it is. Always good to be able to drive 15 minutes and pick up those few "necessities".
Dallas
Similar Threads
-
Sand paper
By brainstrust in forum WOODTURNING - GENERALReplies: 4Last Post: 2nd September 2023, 10:13 AM -
sand paper
By hughie in forum WOODTURNING - GENERALReplies: 10Last Post: 7th April 2015, 09:43 PM -
sand paper
By justahobby in forum WOODWORK - GENERALReplies: 1Last Post: 11th March 2011, 10:07 PM -
sand paper use
By horse123 in forum FINISHINGReplies: 2Last Post: 18th December 2008, 12:34 PM