Downsizing – not really a word I would use to describe a business moving forwards but is that the wrong attitude?
Above you can see the back of one of the warehouses I was using up until recently. It’s 8000 sq ft and at about £2k per month including council rates and electric, was costing me a fortune to run. Looks like a lot of headache right? I was using it to house bankrupt stock and assets, in the photo you can mainly see some of the 37 pallets of kitchen units and doors that I bought from a bankrupt company in Darlington and Exported to Nigeria in Africa.
This exercise of buying this kind of stock in bulk can sure turn a profit, on the job I mentioned above I probably turned over £12k from a £4k outlay but it is always difficult and timely work which often means logistical costs and headaches. I’m keen to remove one of these headaches by downsizing from such a large and costly warehouse. This will reduce monthly overheads, promote sensible buying of stock and motivate us to turn stock over quickly as we won’t have the room to let it build up month on month.
I have downsized the warehouses and now have reduced overheads and gained some great flexibility to boot. The unit below shows one of the new warehouses and at £600 per month it’s a real saving. In addition to this I have come across a great Fulfilment warehousing service that I’m thinking of using for the bulk china stock when things get going.
For those of you who might not know what fulfilment is its basically a dream come true for people like me who want to work from an iPad on a beach some day. Your stock is delivered to them via container and they unload and re pallet it accordingly. It is then warehoused and allocated stock barcodes. When you sell items you simply email or fax the orders, they then pick and dispatch them for you. Put simply you never need to see or touch the stock you import. This will allow me to travel to various suppliers globally and spend time doing what I am good at while letting a professional company carry out the day to day logistics.
This sounds like an expensive premium service right? Well no you would be surprised. I was quoted prices from around 70 pence per item which when you take into account the low shipping rate they can offer due to there volumes thats a pretty good deal.
So by getting myself into a downsizing mindset I have found a way to seriously reduce my overheads, promote quicker stock turnover and found a way to potentially improve my stock handling and dispatching. Doesn’t sound like a business moving backwards to me.
Great blog, I’m an avid reader by the way! I noticed you mentioned a fulfillment company that offered very cheap prices. I desperately need one as I send a large amount of packages all around the world, and soon won’t have the time to do so.
Could you PM me there details. I would be very grateful!
I am about to start using a new company for the UK which a customer of mine is currently using to distribute the products he buys from me.
I hope it will be a good service, if it is i will be happy to pass on the details to you.
Hi, love the blog.
Do you have any fufilment companies that you would recommend to others? I currently use one in Warwick which is good and cheap, but always shopping around.
Good luck with everything
Thank you for your kind words.
What are your reqirements and location, there are a lot of options open to you if you think outside the box.
Who is the company you currently use?
Good to hear your heading over to china, I have sent you an email about meeting up.
Very interesting reading, you sound just like me with your ideas and passion!
I am coming to China in April for the Canton fair, would like to meet up with you for a networking lunch as we may be able to work with each other.
True of life in general…
Ha ha, too true. Afraid I know this only too well. Thanks for stopping by.
LOVE THIS! Read it all….interesting and unlike my blog its informative! hahahaha well done! 🙂 I’m gonna keep following..so keep on top of it…unlike me too! hahaha x
Thanks tarryn, just realised you have actually been living in the same area of the north east as me – no wonder you wanted to leave too. If your ever in china drop round for a beer.
Looking at all those pallets brought back bad memories of dragging them all in there! Interesting blog though brother!
Cheers Leo, you should see the amount of basketball courts in china, you would be in your element.