Zavvi placed into administration

david.n.c said:
Fox is right, but the length to which some business (tesco as an example) squeeze their smaller suppliers is detrimental to the working capital of small businesses. And as you said, it is the lifeblood of any business.

This aspect needs to change.
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Precsiely, and it's not as simple as "take as long as possible to pay". You negotiate terms when arranging credit accounts, and you stick to those terms.
 
When put like that it sounds more reasonable, but its pretty poor practice (not to mention unethical), one has to have a some kind of functional business....relying on profit from interest is utterly absurd, hence the current climate.
 
[TW]Fox;13148239 said:
That is exactly how you run a business. Under normal circumstances, you pay your creditors as late as you possibly can. The money is better off with you than it is with your creditors. The later you pay, the more working capital you have, and working capital is the lifeblood of any business.

Maybe YOU should go back to uni and learn how to run a business?
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Its how you can run a business, I know who it works and that's how Tesco gained so much money by paying the bills after 90 days, it works well with a place with everything under one roof but we are seeing that its not great for specialist stores.

Less of your smug tone please and I have never and will never go to uni.
 
Robbie G said:
Precsiely, and it's not as simple as "take as long as possible to pay". You negotiate terms when arranging credit accounts, and you stick to those terms.
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Very few companies, especially larger ones, stick to agreed credit terms. The bigger the company you supply, the more power they hold over you. Imagine you negotiate 60 day net with Tesco. Tesco decide they will ignore this and pay you 120 day net.

What are you going to do? You can either put up with it, ask them nicely, or take them to court. If you take them to court, they'll find another supplier. So you have little choice but to simply put up with it. Companies like Tesco make considerable amounts of money investing cash before paying creditors, especially when you consider how high their stock turnover ratio is. They buy the goods from you on Day 1, it's sold by Day 3-4 and then the cash is in the bank or invested elsewhere right up until Day 120.
 
I understand the point made there, but you cant get away from the fact thats its all wrong....taking tesco as an example, a small supplier (if they had any sense) would see past the Teso contract and continue to grow thier business with other customers instead of becoming a tailor made "tesco supplier" whereby they become incapable of functioning without them.

It makes no sense to put all your eggs in one basket and have only one big customer....what would happen if they decided not to pay you on time, or what would happen if they went bust?....oh, wait...
 
[TW]Fox;13148239 said:
That is exactly how you run a business. Under normal circumstances, you pay your creditors as late as you possibly can. The money is better off with you than it is with your creditors. The later you pay, the more working capital you have, and working capital is the lifeblood of any business.

Maybe YOU should go back to uni and learn how to run a business?
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Agreed, not a news flash.
 
Not wanting to gloat at anyones misfortune, but this, in a way is a good thing for the high streets of the UK.
Not that many of you have thought it, but I've found it very depressing the amount of identikit highstreets in the different towns i drive around. Now mabye we will go back to how it used to be, variety, choice and no more price fixing as hopefully, we will get some independent shops again.
 
atpbx said:
Not wanting to gloat at anyones misfortune, but this, in a way is a good thing for the high streets of the UK.
Not that many of you have thought it, but I've found it very depressing the amount of identikit highstreets in the different towns i drive around. Now mabye we will go back to how it used to be, variety, choice and no more price fixing as hopefully, we will get some independent shops again.
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Amen to that, brother.

I on the other hand, will happily gloat, because i'm not stuipid enough to live on thin air.
 
MookJong said:
Internet and supermarkets are killing these type of shops, Tescocorp will be the one ring to rule them all eventually.
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I think you're right, a look into my crystal ball reveals proof.... :D;)

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Grimley said:
I think you're right, a look into my crystal ball reveals proof.... :D;)
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Only for the odd convienence, meat pie from tesco hardly has any meat in it.
Meat pie from a butcher on the other hand...well I guess you will never know.

It really makes me laugh, I drive past a tesco every day, and their petrol pumps always have at least a 3 car waiting line, people wanting to save the odd penny on the litre.

I on the otherhand, drive down the road to another petrol station, and I save the odd few pence on the litre by not sitting there idle for 10 mins...and I get the added bonus of not having to wait mwahahaha:D
 
I bought a few dvd,s in the Leicester store on Monday,having a laugh and a joke with cashiers,didn,t look as though they had an inkling of what was about to happen.
These are the people i feel sorry for,losing your job is never good.:(
 
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