The floor market has gradually improved, and sales data in all aspects directly reflect the rise in the floor market. During this period, the profits were escalated by various floor companies. After a period of downturn, floor companies started to raise their prices. Although the market continues to rumors, but the demand is indeed existent, so the number of orders from flooring companies around the country is also considerable.
Usually, SMEs in the floor are unlikely to obtain large orders or even international orders, because they do not have the ability to accept large orders, and it is often difficult for floor buyers to sign orders with “less-known†small and medium floor companies. Even if it is signed, many problems that arise during the supply process are difficult problems for small and medium-sized flooring companies.
For many small and medium-sized floor companies, receiving large orders from well-known flooring companies is tantamount to "falling in the sky." Large companies have good reputations and large purchases. Collaboration with them not only exceeds sales plans, but also adds a striking amount of money to the company's business background. However, most of these "large pies" are not as "eaten" as many people think. The hidden problems are not clear to small business owners. If it has not been adequately investigated and analyzed in advance, the result may well be contrary to expectations, and some may even result in operational crisis.
First of all, the purchase prices of many well-known floor companies are very low. These well-known big companies all have very sophisticated evaluation systems for the procurement channels. They have gone through thorough market research beforehand and are very familiar with the products, services, and prices. Therefore, from the start of bidding, the interests of suppliers are limited to very limited. In the range. In the process of negotiations, large companies will also put forward special requirements such as delivery deadlines, inventory, special services, etc., and take advantage of the large-scale enterprises’ purchase volume and credit status as conditions for further price reductions, plus other factors. The pressure of many bidders, the final price is often very low. If a small business owner does not carefully account for various costs, and accepts a price that seems to be profitable, the result is likely to be that it does not make money at all. Even lose money.
Second, the payment conditions for large companies are also very demanding. Due to credit considerations, large companies generally have no advance payment for small businesses, and in order to ensure the quality of goods, large companies often pay after delivery or even after use, and the payment cycle is usually more than a few months. This means that the capital of small businesses will take a long time before recovering the money. Therefore, if the operating costs of small businesses are too high or the funds are insufficient, careful consideration should be given to such large orders. If you do not do the investigation beforehand and do not do financial analysis and preparation for cash flow, it is very likely that a small business will have a financial crisis, which will affect the further development of the business, and it may cause the bankruptcy of the business.
Usually, SMEs in the floor are unlikely to obtain large orders or even international orders, because they do not have the ability to accept large orders, and it is often difficult for floor buyers to sign orders with “less-known†small and medium floor companies. Even if it is signed, many problems that arise during the supply process are difficult problems for small and medium-sized flooring companies.
For many small and medium-sized floor companies, receiving large orders from well-known flooring companies is tantamount to "falling in the sky." Large companies have good reputations and large purchases. Collaboration with them not only exceeds sales plans, but also adds a striking amount of money to the company's business background. However, most of these "large pies" are not as "eaten" as many people think. The hidden problems are not clear to small business owners. If it has not been adequately investigated and analyzed in advance, the result may well be contrary to expectations, and some may even result in operational crisis.
First of all, the purchase prices of many well-known floor companies are very low. These well-known big companies all have very sophisticated evaluation systems for the procurement channels. They have gone through thorough market research beforehand and are very familiar with the products, services, and prices. Therefore, from the start of bidding, the interests of suppliers are limited to very limited. In the range. In the process of negotiations, large companies will also put forward special requirements such as delivery deadlines, inventory, special services, etc., and take advantage of the large-scale enterprises’ purchase volume and credit status as conditions for further price reductions, plus other factors. The pressure of many bidders, the final price is often very low. If a small business owner does not carefully account for various costs, and accepts a price that seems to be profitable, the result is likely to be that it does not make money at all. Even lose money.
Second, the payment conditions for large companies are also very demanding. Due to credit considerations, large companies generally have no advance payment for small businesses, and in order to ensure the quality of goods, large companies often pay after delivery or even after use, and the payment cycle is usually more than a few months. This means that the capital of small businesses will take a long time before recovering the money. Therefore, if the operating costs of small businesses are too high or the funds are insufficient, careful consideration should be given to such large orders. If you do not do the investigation beforehand and do not do financial analysis and preparation for cash flow, it is very likely that a small business will have a financial crisis, which will affect the further development of the business, and it may cause the bankruptcy of the business.
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