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Great Box Supplier can Increase Your Company's Profits James was getting squeezed in many different ways. His business was crammed in the space he had. "The warehouse is jam packed with various products; my cash flow is extremely tight, labor is at an all time high, and my customers are always trying to get me to do better on my pricing," lamented James. James needed to do a few things differently. "When was the last time you re-assessed your packaging needs?" I asked. "Have you inherited past decisions and older ways of doing things that haven't been changed in quite some time?" It was right for the time when it was done, but much has changed in many ways since then that maybe it is time to re-evaluate your current situation. If your company is similar to James's company here are some things you may find: *
Space is at an all time premium. YOUR BOX GUY TIP: You can't afford not to have a great box supplier. Box sales people are involved in many different businesses and should be able to offer you innovative ways to reduce costs and increase sales. Ask yourself some money saving questions. *
Where could I make the best use of my cash flow? James was asked to answer these same questions. He felt the price per box would cost too much in the smaller quantities. James had not reviewed his packaging in quite some time. In fact what he did 10 years ago he still did today. James hadn't even asked his suppliers what new methods they had seen that could apply to him. Let's take a look at James' situation. The price he paid for his boxes is not the cost of his boxes. Add in the cost of warehousing for the space the boxes use. Add up the cost of tied up cash flow used to buy boxes. What discounts could come from purchasing your core products? How about discount you could get for pre-paying? Could insurance coverage be decreased by holding fewer inventories? It would have been best for James to invest in smaller runs for boxes and take fewer in, since by the time you add in for the hidden costs you would be ahead in the long run. Commodity products such as boxes are readily available and inexpensive for what they are. Why fill up your warehouse and tie up dollars with such products? My customers can have most of what they need in a matter of days giving the business much needed space and spreading out their cash flow. The extra money can be used to bring in products where they can make more money or work out some really good deals. We introduced a new style of box that sets up and packs quicker ultimately reducing labor. This was a big savings for James and his company. James has since cut way back on his inventory of boxes, (and other supplies as well). The jump in the cash flow alone has really enabled him to use his money in better places. The free space is the best thing to happen for him as he has used it for more important items that are money makers. He has increased profits by investing a little more in a lot less! James's business has changed for the better. How can you do the same?
REPRINT PERMISSION ~~~~~~~~~~~~~~~~~~~~ Reprint permission granted in part or whole when the following credit appears: "Reprinted with permission from "Len Oppenheimer's Packaging Success Newsletter. (Copyright, 2003, Len Oppenheimer, YourBoxGuy.com)
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