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How the basic business commerce cycle affects us all

With commerce there is usually an origin which is basically the manufacturer of products that collects the "raw" components to make a finished product.

To make this section of commerce function the manufacturer in almost all cases needs to build a bulk amount of items to distribute the cost down to an affordable value for the end buyer.

The step of determining the quantity to manufacture is often calculated on researching to find what demand there would be or make per order and this may not always be a correct outcome as demand may decline during manufacturing time both for the manufacturer or the business who placed the order.

This then becomes the "risk" for businesses and the inevitable result can be an excessive supply for the demand.

A typical strategy used at this point is to discount the product to "clear" stock so that inventory is manageable. This is the dilemma that all businesses have, when to build up the inventory and how quickly it can be "cycled" to repeat the process.

A danger of stocking then discounting just to restock is the "age old" way of continuing a cash flow but in recent times it's also becoming a popular expectation for the buyer to wait for and this is now the difficulty faced by businesses.

Discounted products and services are good for the buyer but the damage done is "dumbing down" commerce, which is something no successful economy can afford to continue.

It's very much like "throwing the baby out with the bath water".

The longer this approach is maintained the longer it takes for the business to gain the flow of revenue needed to keep profitability and the flow-on then helps support the government with full revenue in taxes and helps us all.

Our focus is to develop a new business model to achieve a "win win" outcome for buyers and sellers!


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