But, what we don’t hear is that one of Northern California’s most successful and prolific ancillary housing suppliers (having been in business 20+ years) is facing the business equivalent of Russian Roulette in 2008 and asking me take inventory of their value in the market. As it stands for their specific “wares”, the Home Depots, Wal-Mart’s and Lowe’s of the world have decided to adjust their inventory allocation systems to “pay by scan”, meaning that the item is never sold to the vendor but consigned to the store. The item sits on the shelf until it is scanned at “point of sale”. Once sold, the supplier will be credited for each item purchased on a piecemeal basis paid weekly, bi-weekly, or monthly as agreed per vendor. Long gone will be the days of vendor meetings at Vegas strip clubs pushing the contract line of supplier “garb”. New online industries will emerge as old purchasing habits may soon be replaced by the online “dot com’er” bidding up shelf space to the highest bidder at Home Depot #6620 in Sacramento, CA.
Saturday, December 29, 2007
I wrote an article for BHB regarding a new commercial listing and the effects the slowdown in the residential market is having on some commercial businesses: