Selling to those worst hit by recession

MB74

What do you think about targetting those worst hit by the recession, or are these sectors too risk when it comes to getting paid?

So apart from builders, estate agents and garages what are the worst hit sectors from the recession?

newman10

MB74 wrote: »

So apart from builders, estate agents and garages what are the worst hit sectors from the recession?

Clothing Retailers

mikemac

Public servants or so I'm led to believe

You can solve a lot of this issues in advance with background checks, credit ratings and strict credit terms. Or even then, no credit at all

Mr Benevolent

What do the people worst hit by the recession want? Something that stops them thinking about the recession. Alcohol. DVDs. Cinemas. Chocolate. Cigarettes.

Think about it.

drunkmonkey

mikemac wrote: »

Public servants or so I'm led to believe

Some enterprising young buck has made a killing out of it today, 250,000 posters to hang round your neck, whay didn't I open a print shop

Pixelcraft

^ hehe, on a serious note printers are dropping like flies.

zenmonk

I would suggest selling by way of cash only, credit terms should not be offered. I deal with builders all the time and even the genuine ones are finding it very hard to pay their accounts, the banks have withdrawn overdrafts and they have all their money in unsold houses, land etc.
Ireland will be a very different country for credit when the recession ends.
Maybe we needed to have a long hard look at ourselves anyway. I saw figures before where the average days outstanding on credit in Ireland building sector was 64 and the UK 30.
I would guess that in Ireland it is nearer 90/100 days now.

branners69

I have seen loads of flower shops closing, they seem to be getting hammered at the moment!

MB74

So the next question is that is someone was to offer say a 5% discount off say oh I don't know a commercial insurance premium if it was paid up front or paid within 7 days would people go for that?

tombull82

I am starting something up also, but want to offer no credit. I'm also wondering how the business sectors will take to this?

Bandara

tombull82 wrote: »

I am starting something up also, but want to offer no credit. I'm also wondering how the business sectors will take to this?

tbh they will laugh at you if you suggest that you do not offer any credit terms. Businesses are so tight with cashflow that paying soemone up front is not an option/not worth doing.

They will just stay with their existing suppliers. Its going to be hard enough for you to attract companies to deal with a new business without refusing credit to them.

You'll never get a customer imo.

tombull82

yeah kind of thought so myself. what about upfront for advertising? Is this the norm? I.ve been lookin at a few billboards for use during launch and i'm been told its upfront.

Hammertime wrote: »

tbh they will laugh at you if you suggest that you do not offer any credit terms. Businesses are so tight with cashflow that paying soemone up front is not an option/not worth doing.

They will just stay with their existing suppliers. Its going to be hard enough for you to attract companies to deal with a new business without refusing credit to them.

You'll never get a customer imo.

MB74

Hammertime wrote: »

tbh they will laugh at you if you suggest that you do not offer any credit terms. Businesses are so tight with cashflow that paying soemone up front is not an option/not worth doing.

They will just stay with their existing suppliers. Its going to be hard enough for you to attract companies to deal with a new business without refusing credit to them.

You'll never get a customer imo.

I think this is only half true, look at the alternatives to ESB and Eircom. Don't know about the rest of you but I was never 'early' paying either of these bills and was quite happy to wait for a reminder. But moved to Energia and O2 who moved me to direct debits and I now pay on time always without any questions, just happy to save money. I suppose it's how you package it.