Do you feel in recession?

[Cyclone]

It makes sense that you would keep both channels open, particularly if there is likely to be volatility in the availability of the supply.

I'm sure that most business people are capable of understanding this and wouldn't deliberately put themselves in a position where their 'cheap' supply might suddenly be cut off and no alternative exist.

[Chez2]

It makes sense that you would keep both channels open, particularly if there is likely to be volatility in the availability of the supply.

I'm sure that most business people are capable of understanding this and wouldn't deliberately put themselves in a position where their 'cheap' supply might suddenly be cut off and no alternative exist.

 

You would think so but they don't. I still see it happening now. They just see the price and don't take everything into consideration. Once they have been let down some of them change the way they do their buying or selling.

[Cyclone]

Of course there's no more of a guarantee that a UK provider won't let them down than an overseas one, so what basis should they be making a decision if not on price?

[L00b]

Of course there's no more of a guarantee that a UK provider won't let them down than an overseas one, so what basis should they be making a decision if not on price?

Depending of course on what is actually bought:

* Quality for price (more for less, when do clients don't ever seek that? )

* Company viability (CH accounts or Red Alert for UK-based)

* Turnaround/Reliability of supply (consistency of service, basically)

* Payment terms (30/60/90 days and 'elbow room')

 

Speaking as a supplier, there will of course be a 'wiggle' element to all or some of these depending on how the client fares on same parameters. E.g. payment on account first if the client looks unviable, less (eventually no-) service if the client is consistently late paying, etc.

 

Nothing new or surprising there.

 

We've strayed a fair bit O/T here. IMHO, where the recession is felt, or comes into it, is in quality for price, viability and terms.

 

Many clients' terms have been downgraded ('brought forward') as a result of our own viability matrix for them. We've lost some business as a result (we lost more, in fact most by far, business through clients going to the wall in 09/10, TBH), but in parallel (and as a corollary) reduced our cashflow exposure and credit control requirements, and freed up our main resource (our time) for maintaining & improving quality for remaining and new clients. Basically, the recession has coerced us a little further into best practice, and to be more pro-active with 'problem' suppliers and clients (getting rid).

Edited April 27, 2012 by L00b

[Chez2]

Yes there is cyclone. L00b has summarised it. The example I gave was specifically in my industry. I keep telling you that its a know fact that these markets switch on and off due to supply and demand, holidays etc. The UK market doesn't do that. UK prices do fluctuate but they are more stable and will always 'do the deal' ie you won't be left high and dry.

[Cyclone]

Yes there is cyclone. L00b has summarised it. The example I gave was specifically in my industry. I keep telling you that its a know fact that these markets switch on and off due to supply and demand, holidays etc. The UK market doesn't do that. UK prices do fluctuate but they are more stable and will always 'do the deal' ie you won't be left high and dry.

 

How come you know this but the people running businesses don't?

[Chez2]

How come you know this but the people running businesses don't?

 

Its what I do for a living, I run my own business. Click on my signature and you will see. The people who are 'sold' the other supplier route either don't understand the market or are just looking at the price and not the whole picture. Their sales person isn't going to tell them the negative points of their service are they?

[epiphany]

Coincidentally, because of the turbulence surrounding Google's increasingly frequent updates, I do feel like I'm in a kind of looming recession, but it's obviously not related to the "outside economy", it's just Google shuffling their feet.

 

Most of my income comes from the US, so don't feel the local implications as much as a small brick and mortar business would.

 

But Google does seem insistent on giving even us white hats our own traffic based recession, first dressed up as a panda... now a ****ing penguin.

 

I'll know I'm screwed when they release the "Killer Whale Update".

Edited April 28, 2012 by epiphany

[Dronfielder]

My industry is on its arse and has been for a good few years. In 1 respect this is good as the amount of advisors around have fell off the side of a cliff so more to go around. The downside of this is that a lot of well respected IFAs have left the industry never to return

[tinfoilhat]

It's naturally quite at this time of year - but it's quieter than normal. Busy period is coming but with London being a no-go area for the Olympics, there's a strong possibility I'm going to take a bit of a hit.