Owning and operating a business is tough. Customer expectations coupled with their buying patterns and strong competition all have a dramatic impact on the bottom line of a business. Let’s explore in further detail how some of these factors truly impact a business:
The vastness of the internet means that customers can almost always find the lowest price for any particular product. The bigger the online retailers possess more buying power that allows them to buy their inventory from a wholesaler at a lower price. And even when you add in shipping costs, most online retailers do enough business that they get healthy shipping discounts that allow them to be extremely competitive.
It has become a common practice for a customer to go and physically look at an item in a local retail store, and then go buy it online for a lower price. Often, the only way that a brick and mortar retail location can compete with an online retailer is by offering superb customer service. But even that does not eliminate the fact that a person may be swayed in their purchase by actual dollars saved.
The ability to buy from a physical retail location and take immediate possession of a product may seem like an edge over an online retailer. However that is sometimes outweighed by the ability for a customer to order something online from the convenience of their home, not have to worry about store crowds, save gas money and time, and have it delivered to their doorstep just a few days later.
Retail business has never been easy and has a history of owners trying to make a profit from what are already slim margins. Traditionally, retail business owners only had to deal with local competitors. Now, they are forced to compete on a global scale thanks to the online retail industry.
It has been all too common to see small retail business owners watch their business deteriorate in the midst of extreme competition and make the following types of mistakes that help lead to bankruptcy:
If some of the above sounds familiar to you or someone you know and care about, then consider meeting with experienced bankruptcy counsel to determine if a business or personal is a viable option.
If you would like an experienced set of eyes to review your situation, we encourage you to contact us today for a confidential review or call (248) 350-8220.
The retailer Nine West has filed for chapter 11 bankruptcy citing debts totaling more than $1 Billion. Nine West owns the Anne Klein brand as well. Learn more.
The iconic brand of Sears is getting smaller in Michigan in the midst of bankruptcy. The legendary retailer is recently announced that stores in Ann Arbor and Lincoln Park will be closing. Learn more.
Gold, Lange & Majoros P.C. has recently launched a brand new corporate website to help enhance the experience for its users and deliver information more quickly to its customers. When asked about the new website John Lange, one of the firm’s partners, had this to say, “We are excited about our new website. Our goal […]
People often think that chapter 7 cases are easy, straight forward and uncomplicated. It’s easy, right? An attorney just buys a computer software bankruptcy program, inputs some information, files the case, goes to the 341 hearing and then waits for the discharge order. While I certainly don’t turn down simple cases, I do come across […]