Real life business problem

[noonereal]

Originally Posted by BlueStreak

Great, Nooner. Encourage him to do what is killing this country, when the man is trying desperately to keep the work here. This is precisely what we're NOT supposed to be all about.

Dave

I know I know but facts are facts

The problem we have in these regards cannot be corrected from the bottom up. That approach will simply keep the major corps unchallenged. Do you know how hard it is going up against the Nike's of the world? It almost can't be done.

[mossbacked]

Originally Posted by noonereal

sadly I think you are swiming up hill

what I would do is fly over to wherever you could source it from and "sell" the product to one of the biggest potential manufacturers as a "personal investment"

This will raise private capital for you and insure you a reasonable, continual and quality controlled supply.

buying production time and struggling with quality control could make your entrepreneurial work worthless in no time

then take your profits and invest them in the local community to supply jobs

manufacturing here in the US something that is not time sensitive or high end niche will leave you with at a financial handicap that you will not overcome

depending on the complexity of production look to mexico
They can assemble (if applicable) for you, probably not manufacture

The "swimming uphill" metaphor crossed my mind and makes me wonder if "non-essential consumer goods" really can be produced here long term. At any rate, our intent is to find a way to approach the same cost per unit produced here as opposed to there (Asia/Mexico).

This is the part I haven't thought through. I can visualize what paying a next door neighbor does to the local/national economy, but I'm not sure what happens when the production dollars and return freight go to Saipan or Sonora.

[noonereal]

Originally Posted by mossbacked

The "swimming uphill" metaphor crossed my mind and makes me wonder if "non-essential consumer goods" really can be produced here long term. At any rate, our intent is to find a way to approach the same cost per unit produced here as opposed to there (Asia/Mexico).

This is the part I haven't thought through. I can visualize what paying a next door neighbor does to the local/national economy, but I'm not sure what happens when the production dollars and return freight go to Saipan or Sonora.

best of luck to you whatever direction you take!

[BlueStreak]

Mossy, I don't know what to tell you, but I hope you are successful. Thank You, Sir for making efforts to employ Americans.

Dave

[mossbacked]

Thanks to all who have contributed.

I'm meeting a mentor in a few for lunch who owns a large office supply chain.

I remember about 6 or 7 years ago he started traveling to Asia to buy office products. At first he purchased several container loads of just 10 SKU's. I remember leather Executive office chairs, black and mahogany leather sofas/loveseats as might be in an upscale office or waiting room, 2 and 3 drawer file cabinets, basic office chairs and desks, etc.

He told me years ago that he would make as much on those 10 SKU's as on 100+ other SKU's in his showrooms. Naturally, he expanded his selection over the years. He kept his stores open and most of his sales force, but I'm sure his domestic suppliers laid off a few.

At any rate, I'm off to get his take on my situation.

[Zeke]

Good luck, but I see two opposing goals:

1. Make as much $$$ as possible.
2. Employ American labor.

One has to give, the choice is yours.

[BlueStreak]

Originally Posted by Zeke

Good luck, but I see two opposing goals:

1. Make as much $$$ as possible.
2. Employ American labor.

One has to give, the choice is yours.

That's a good point, but there are also other things to consider; regulation, taxes, cost of shipping, importation, etc., etc., etc.....................

I'm just glad to see he cares enough to make an effort. So many would have never even considered option #2.

Dave

[Charles]

Just out of curiosity, what advice did your mentor give you?

Chas

[mossbacked]

Originally Posted by Charles

Just out of curiosity, what advice did your mentor give you?

Chas

Well, it was depressing.

He now travels to China every 3 to 4 months on buying trips and purchases almost everything he sells by the containerload direct from the producers. He buys large enough quantities of some items that they are "private branding" the items to reflect his store's name. As his quantities grow they are even beginning to private label the smaller quantities based upon his overall growing volume. He buys almost nothing from his former vendors here in the US (although their products are now mostly manufactured overseas too). He just now cuts them out of the equation by going direct to the source.

His advice was that I accompany him on a future buying trip where he would make some introductions that he thinks would help me.

I drove home after lunch feeling ill about the whole revelation that we probably won't be able to pull off producing here in the states.

[Charles]

Originally Posted by mossbacked

Well, it was depressing.

He now travels to China every 3 to 4 months on buying trips and purchases almost everything he sells by the containerload direct from the producers. He buys large enough quantities of some items that they are "private branding" the items to reflect his store's name. As his quantities grow they are even beginning to private label the smaller quantities based upon his overall growing volume. He buys almost nothing from his former vendors here in the US (although their products are now mostly manufactured overseas too). He just now cuts them out of the equation by going direct to the source.

His advice was that I accompany him on a future buying trip where he would make some introductions that he thinks would help me.

I drove home after lunch feeling ill about the whole revelation that we probably won't be able to pull off producing here in the states.

Thank you.

I've always placed a great deal of stock into the advice of a mentor.

I learned a lot from mine, only I never developed the appetite to bet it all on the last card.

He was a gambler, I prefer a calculated risk.

Chas