Sunday, February 15, 2009

Cash-And-Carry World

While big business falls apart as leaders try to see how they could possibly have guaranteed each other's health and growth forever via CDS's in this finite petri dish of a circular world, the small survive.

Cash up front works for everyone.

As a candle crafter three decades ago, I and my partner gave the stores that bought from us a 2 percent discount for payment within ten days. The balance was due in thirty days. The phrase "2/10, net 30" was on our sales brochure. We sold out after ten years, the design lives today.

We gave our stores credit. We were credit givers.

Today, we would play for cash. Prepay those orders, people. Free shipping if you prepay. First box out the door if you prepay - you go ahead of our credit customers. Minimum order is halved for prepayers - order only half a dozen if you like. Try 'em and see!

Candle wax was heavy. Shipping costs had limited our effective territory. The farther from our workshop, the higher the price in the store and the slower the sales. Eliminate the shipping cost and we would quintuple our territory and sell to the whole nation. For cash.

You cash, we carry.

That's what we would have done, by golly. And then we would have bought many houses in Saginaw, and rented them to early retirees using network marketing. But that's another blog post, and I'm late for my basket weaving class.

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