Offer discount codes

Discussion in 'Screwfix' started by PGB, Jun 8, 2009.

  1. ponty01.

    ponty01. New Member

    your not entirely wrong imran, but you do have that small business mentality, not that there is anything wrong with that. your not a plumber by any chance, are you?
  2. imran_

    imran_ New Member

    Small business mentality?!? Remember seeing an Alan Sugar doc many years ago, before he became a "star". He bought Dan ((I think, mobile phone co) and when touring the factory asked how much surface mounted resistors cost them (approx 10 a penny). The guy didn't know, and you could see the look of disgust and hatred on Sugar's face.

    Sugar knows: the gross profit is 100% related to the cost of stock, and if you don't know one you can never accurately predict the other.

    BIG businesses that have not kept focus on cost are notorious for being taken over and then "trimmed". Small businesses that don't keep the focus just die in the gutter.

    Tomorrow: how to stock take in 30 mins.
    (Or... if you're Loz: how to clean your Granada estate )
  3. ponty01.

    ponty01. New Member

    Yep. He is a definite 'plumber'
  4. ponty01.

    ponty01. New Member

    by the way dont forget about 'adding value', 'product differentiation' and market positioning. There is a lot more to business strategy than making a profit.

    Then again, I accept these are not virtues required by you sole traders.
  5. imran_

    imran_ New Member

    Very funny mate. I did my CMA a long time ago.... and you??? BTW there is no "product differentiation" because plumbing is a service industry ;)

    I don't come on here to brag like Puller et al, but I'm doing all right thanks. Our prices are definitely not lower due to the credit crunch - we still have to eat (and make a healthy profit).

    All those companies/individuals going bust - because they don't understand their cost base. First rule of business. Doesn't matter what you charge, if it don't cover the costs.....

    FYI, over 50% of the FTSE 100 are managed by actuaries (i.e. smart accountants; bean-counters). That's because they run businesses profitably. And that means counting the beans.

    Out of interest, what goes down on your EOY accounts for depreciation, write-down and stock. There's a chunk of cash just waiting to be had there!
  6. ponty01.

    ponty01. New Member

    You make some good points there imran.

    you can however still offer differentiation with plumbing supplies. all though the product may be the same offered by many other providers, the service aspect that is offered can be a means of differentiation.

    Just offering a courteous service, no hassle returns policy, on-line ordering, free delivery. carrying a large stock, breaking bulk etc. These are all areas where companies can differentiate.

    I am a director of several companies with membership of the SMS and do some lecturing on Business Strategy, you know the stuff, Porters Five Forces, Kraljic, emerging technologies etc

    There are many options for depreciation, stock loss etc at the EOY. I leave this to our company accountants. We pay them well to use there expertise and creativity to produce suitable outcomes. Big benefits are available at the moment by offering staff recruitment, training and development, but that is only because of the current climate in all business sectors.

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