bigpoppa
Well-known member
^this
I've heard from more than one startup that banks only lend to those who dont need it.
I've heard from more than one startup that banks only lend to those who dont need it.
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Showrooming
- Thread starter TK4
- Start date
Yup ...Adrian started literally in his townhouse garage and finally expanded to a small industrial unit because biz was booming but not from retail sales.
With high rent costs in cities it kills diversity ...only the major chains can afford space....hell Toronto can't even sort its street food opportunities. There are a few distributors working closely with their dealer network so people can buy online, pickup locally and the dealer nearby gets a cut but does not need to stock. Not a bad route. I got a great price and terrific service from them.
www.kimpex.com
With high rent costs in cities it kills diversity ...only the major chains can afford space....hell Toronto can't even sort its street food opportunities. There are a few distributors working closely with their dealer network so people can buy online, pickup locally and the dealer nearby gets a cut but does not need to stock. Not a bad route. I got a great price and terrific service from them.
Faqs | Kimpex Canada
www.kimpex.com
Have been to Adrian's place a few times but only for tires as I do all the basic stuff myself. How I wish that I had the skills for the more advance stuff!
Anyway, back on topic. Like @Wingboy says, everyone wants something for free....my buddy's a perfect example. Has his own business, bitching about having to pay 10k in tax...well ****. That means you made money! But of course it's too much, too expensive, crooks, blah blah blah....you don't like it....back to Poland you go! But when you say that...it's all huff and puff.
Anyway, back on topic. Like @Wingboy says, everyone wants something for free....my buddy's a perfect example. Has his own business, bitching about having to pay 10k in tax...well ****. That means you made money! But of course it's too much, too expensive, crooks, blah blah blah....you don't like it....back to Poland you go! But when you say that...it's all huff and puff.
TK4
Well-known member
Small business has to pay property taxes, HST, employees, heat, hydro, rent, business taxes - a lot of which has nothing to do with earning a profit.
Have you ever been an independent business owner ? If not, shut your blowhole.
Mad Mike
Well-known member
I agree that consumers have no responsibility to support any store who isn't willing to compete. I disagree that having distributors (Parts Canada, Motocan, Thibeault, in the supply chain is inefficient and adds to cost. Disty role in the supply chain is to provide meaningful services to manufacturers on one end and dealers on the other. Disty's provide Manufacturers forecasting, volume orders, warehousing & fulfillment, marketing expertise, local salesforce reach, credit and collections -- allowing the manufacturer to focus on making and building products. Disty's provide dealers similar services -- warehousing, one-stop reordering, inbound shipping consolidation, credit, & marketing support.
The savings for a manufacturer vs costs of dealing dealer direct) are huge, and they are passed along to distys in their pricing. Dealers also save a huge amount of time, effort and cost by using distributors.
At the end of the day your goods are more available, get to you faster, and cheaper BECAUSE there are distributors.
I will agree 100% with this. 2-3 international trips/year, blows money on anything, new cars, but 'I'm so poor, blah blah blah.' LoL
TK4
Well-known member
Then you already know. I wish you and your small business well, its a tough world out there.
You have absolutely zero evidence to support this. 25 - 40+ years ago these distributors worked hard to secure Canadian distributor rights to US manufactured non OEM product lines and it was a great deal for US and other manufacturers who had no representation in Canada + it was an even better deal for Motovan and Parts Canada. Was this a good deal and a cheaper deal at some point in time years ago, maybe it was, but not anymore.
In this age of online ordering and global logistics these distributors are hugely responsible for excessive retail costs of US products and very low profit margins for Canadian bike dealers, so low that many are going out of business. These distributors suck up the majority of the profit margin, leaving little for retailers.
Spoken like a true corporate lackey.
Nice theory. I have very high cash flow, I retain my first client from 35 years and and no issue paying it back but I don't own property. So no I don't get the time of day from the banks. You will hear that story across the small business spectrum.
Other mixed economy nations like Norway and Sweden support their small businesses with reasonably priced term loans as they understand the importance of the segment to employment.
The window is there for P2P operations
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Put $100k inheritance in your "savings account" ....get 0.3% p/a return. Get a "low interest" LoC ...oh that will be 6-7% above prime ...maybe you get 13% ....more often 16-17%
Wanna buy a ridiculously over priced house in Toronto, banks will line right up to fund the casino bet.
Has nothing to do with socialism or wanting something for free...that's just a crap comment from the right wing trolls with pensions who couldn't survive in today's gig economy.
It has to do with regulating the oligarchic banking system in Canada to serve the small business community that employs so many instead of lining their own pockets with the inherent advantage their charter for fractional lending gives them.
As it stands angels and P2P fill the role the banks could but won't. Disintermediation is going to hit the banks too....can't happen soon enough.
bigpoppa is right, there are lots of ways to raise money. BDC helps small businesses, I would not use my house as a leverage to open or run a business (but thats just me) , thats why I'd never open anything that wasnt Ltd. The cost to incorporate with a #'ed company in Canada is pretty reasonable, and the benefit is too long to type. Chartered banks dont exist to fund unsecured credit, they have a responsibility to shareholders like any other business.
When rent chases a business out of a location guess what? somebody else moves in. The landlord didnt build the space to minimize his returns.
why trot out how they do it in Norway or the US? its not how its done here, nor will it be that way for a long time.
When rent chases a business out of a location guess what? somebody else moves in. The landlord didnt build the space to minimize his returns.
why trot out how they do it in Norway or the US? its not how its done here, nor will it be that way for a long time.
You're right, the distributor model is essential to small business. Most manufacturers, regardless of the industry don't want to deal directly with every customer who sells their product. they're in the business of manufacturing the stuff and shipping small quantities all over the place is inefficient and expensive. A small markup on the wholesale price and a reasonable delivery charge made the system work for smaller shops that couldn't sell the volume necessary for direct from manufacturer drop shipments.
The problem for the consumer arises when distributors and manufacturers arrange "Exclusivity" agreements, which is code for, "jacking up the price because we THINK we can." Over the years I've had sales reps feeding me the same BS over and over about how their becoming the exclusive source for something will give me better service and access, but without exception all it meant was a dramatic price increase to me and therefore an increase in the retail price.
Every time the exclusive arrangement reared it's head I started researching alternative products, because there ALWAYS are alternatives. More often than not the exclusivity agreements reduced availability of the now-exclusive product across the market and increased the profile of competitor products as resellers find alternatives.
This is what was infuriating about how the Canadian distributors did business. They'd have agreements with the dealers and with the manufacturers that they represent, and only carry a subset of parts (presumably, only those that they knew they could sell with decent volume). You walk into a dealer asking for something, the chap behind the counter opens the catalog, and if it's not in the catalog it might as well not exist, even though you know it exists south of the border or somewhere else in the world. They would not lift a finger to help someone who really did want something that wasn't in their standard catalog.
This is also bad for small business on the manufacturing side. If someone comes up with a specialty product, the distributors won't help (foreseeable sales volume is too small).
Result ... consumers buy over the internet. To help out the little guys, when I need to buy over the internet, I'll buy direct from a manufacturer's website as opposed to via Ebay or Amazon, if there is a choice in the matter.
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