New in the Business Questions

[pallets and crates]

We have a small pallets and crates business in Georgia. Long story short we purchased the equipment from the estate of a friend who passed away and were fortunate enough to retain a couple of customers of his. This was a year ago and we have been doing a fair amount of business with the customers I mentioned. We are learning this business by the seat of our pants and are well aware that we need to educate ourselves in quite a few areas in order to acquire new customers and become a better, more informed supplier of pallets and crates. There seems to be so much information out there that we aren't sure where to start. Our immediate goal is to secure a few more customers in order to stay afloat and obtain some reliable information on the best way to accomplish this. Long term goals are to become more educated and involved in the industry in order to grow this business.

We have begun the process of getting all the numbers, etc... to bid on some government contracts (again, an overwhelming task), but aren't quite there yet either!!

Any helpful suggestions would be greatly appreciated.

Thanks and have a great 2008 !!!

Pallets and Crates

[Crate Crazy]

Welcome to the Forum, and better yet, welcome to the wood packaging industry!!

There are several tips, industry knowledge, strategies/tactics that work well in the industry... but... before diving into the business I have a suggestion.

Of course I don't know the business you acquired, how it was run, your customers etc... and I'm not sure how well you know it either, so with that in mind... to start with, I would recommend you look at it from a costing/pricing angle.

Look at what you are buying supplies for, paying your people, all costs associated to the price of your product.

There are to many businesses out there that have no idea what profit they are receiving from what customers, who are the profitable ones, and who are the loss leaders etc...

Generally, it helps if you divide it between material costs, direct labour, and overhead costs. Keep it simple! The goal is to get a fair costing of each product or service, and also to make sure that all your business costs are covered. Pricing on the other hand is regulated by the market. By knowing what the market is ready to pay for different products, and also the actual costs you will know where you make the profit, or potential losses. Of course this is very general, but extremely important and something most businesses overlook. Always consider the market... sometimes you must take minor losses to win business.

Hope this helps... very general, but nonetheless IMO great value.

Once you dig up this info, I'd be more than willing to help you in any way I can

[storemore]

Pallets and Crates,
I am very new to the business. Wondering if we could talk and possibly learn together. My name is Tony, and I can be reached at tony@storemoreshelving.com or 517-403-8913. I could really use some help in getting started myself.
Thanks,