I never thought that living at the end of the world the economy would affect me. So much for that thought. I have my production sold out and bigger than I can finance and the local bank has shut off all lines of credit to any wood business. What a delema.
I guess I now join the unemployment line except they dont have one here.
Jim
Sorry to hear that. With the exotic woods you have shown us maybe you can reorganize and direct market some of it to the hobby market in the States and elsewhere?
Dana:
My market is the US hobby market but my orders have gwown to large to self finance. Who ever thought a Peruvian bank would be afraid of one of the biggest chains in the US. Times are changing.
Jim, is that your wood I've been seeing in Woodcraft?
Yes that is my wood and they choose the ugliest wood I got. Now I went to an 8 billion $ company and I am a bit behind the eight ball. Incredible but true.
Many years ago our shop did a lot of work for IBM. Well one day they said we want you to do all our work and nobody else's and my father said shove it. I could not understand that. IBM was such a big gigantic company. Well that was my first lesson in business. First they load you with work, then they cut off the work, then they buy you out for pennies on the dollar....Be careful out there....Cheyenne
Quote from: cheyenne on March 12, 2009, 12:41:20 AM
First they load you with work, then they cut off the work, then they buy you out for pennies on the dollar....Be careful out there....Cheyenne
I've seen that happen too, and was not in any way the fault of the supplier. Be very careful.
I think more businesses have failed, especially small ones, not because they weren't profitable, nor because they didn't have sales opportunities, but because they couldn't get adequate financing for cash flow and operations.
I have no clue about the banking system in Peru, but maybe its time to try a different bank. Are there global banks there that might have a better understanding of the company you are wanting to do business with? From some of your previous posts, it seems like you have grown and gotten fairly large. Sometimes people outgrow local banks.
First they load you with work, then they cut off the work, then they buy you out for pennies on the dollar....Be careful out there....Cheyenne
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I've seen that happen too, and was not in any way the fault of the supplier. Be very careful.
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Ford Motor Company pulled that stunt on several occaisions in the early years . They would convince a supplier to ramp up to the point that Ford was their only customer. Then they would not renew the contract and buy out the supplier at a bargain price.
Sparky
Quote from: sparky on March 12, 2009, 11:26:32 AM
Ford Motor Company pulled that stunt on several occaisions in the early years . They would convince a supplier to ramp up to the point that Ford was their only customer. Then they would not renew the contract and buy out the supplier at a bargain price.
Kraft does the same thing. They did it to a lot of milk and cheese outfits here in Wisconsin. Pretty dirty way of doing business.
We will make it somehow. My bank is looking for other solutions, my buyer is looking and my people and suppliers are ready to do anything to keep their work. A lot of papers moving now and we will get there somehow.
Is there any chance you could team up with a broker to get you thru short term maybe a short term contract I know you wouldn't make as much money but maybe it would get you thru the turmoil or try a foreign (to you) bank We did business with some of Brazils Banks Now it was a long while back But they were pretty knowledgeable and helped us a lot And as you know In country is always the route to take as possible but Sometimes you gotta do what you can to survive Good Luck
Chico