If a supplier is trying to talk you into carrying a new product, you may be able to get it "sale or return" (in the USA we call it consignment). This means that you don't have to pay for it until after you sell it, if you do sell it. There is no inventory cost and no accounts payable. Just provide the selling space, add it to your catalogue or website and any direct mail literature. When you sell any of these items you just pay for those and can return the unsold ones.
This can also be done with bargain items and a big stock-up for a coming sale. Ask, fax or email all your suppliers plus any new ones and see what they can offer. If you get 20 no's and 3 yesses, you're still ahead of the agme. These items can make your shop, warehouse and product line look fully stocked without a large outlay of cash. It's also a great way to see if a new products will appeal to your customers.
More on marketing new products and raising capital in chapter 22 of my book "Save Your Business" available on amazon.com.
Wednesday, July 20, 2011
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