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Manufacturing: The 17 Percent Solution

You can compete successfully in the global economy and overcome the 17 percent cost advantage of landed goods from low-wage countries. This blog is about ideas, tips and resources to help you win!
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In your campaign, sir, you promised to double the MEP budget. It's a promise you should keep.

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Specter of Bankruptcy Haunts Manufacturing Sector
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...



Latest Comments in Manufacturing: The 17 Percent Solution posts

Joseph Turquie and Neil Feldstein brings new CarbonNeutrality (Carbon Neutrality) Trading pollution credits business which is just a rip-off that it may allow dirty business facilities to continue to operate in violation of clean air laws.

Carbon Neutrality certificates are sold by franchise dealers such as Atlantic-Millennium John Staluppi Auto Group to car buyers who feel so guilty about contributing to global warming and of course, dealerships don?t tell you how they ?guarantee? that ?they? will reduce carbon dioxide while you are signing your loan contract with Mr. Finance manager.

A few years back; Joseph Turquie and Neil Feldstein Neil Lincoln/Mercury Hyundai Corp., d/b/a Neil Lincoln-Mercury Hyundai (Medford);Neil Buick Corporation, d/b/a Neil Buick Pontiac Dodge Isuzu (Medford), nearly 25 years of experience misleading and deceptive advertisements included those which:

-Promote the lowest prices in ads, without disclosing (or doing so in extremely fine print) that the advertised price excluded a range of additional fees and charges or applied rebates of very limited availability;

-Promote "$0 Down payment" that misleads consumers into believing they can complete the purchase/lease of a vehicle without paying-out any money. Consumers later learn that registration fees, taxes and other charges must be paid when the contract is signed;

-Advertise "0% APR" that fails to disclose conditions, qualifications and limitations that materially affect the offer's availability and violates the federal Truth-In-Lending law;

Advertise low monthly lease payments in violation of federal advertising laws that require the disclosure of information about other costs that would significantly increase the total cost of leasing; and

-Promote "Bad Credit? No Problem!" ads that mislead consumers into believing that they can receive financing regardless of their credit history and fails to disclose that the finance rates for high risk borrowers may be prohibitively high.

Neil Lincoln-Mercury Hyundai, Neil Buick Pontiac Dodge Isuzu and other a few other dealers have agreed to pay a total of $57,500 in penalties and to stop their misleading and deceptive marketing practices. details: http://www.oag.state.ny.us/media_center/2004/apr/apr26a_04.html

Still feel so guilty about contributing to global warming?
By: kariarirem on 5/30/09 at 9:27 AM
Carbon Trading: "Green Is Good"
This applies to apparel, that's all I know. I'm constantly amazed by the number of start ups who's goals are to sell to big box retailers. While you correctly mention they'll often want your efficiency increase discount, that is a pittance in comparison to the actual costs of servicing those accounts. It's much more costly in mostly two respects. One is the requirement of a sophisticated vendor compliance deployment and the other is factoring.

The lion's share of incurred costs is factoring. Factoring of apparel runs 20%, much higher than in other industries. The reason is, most big box stores sit on receivables for 6-9 months. Say what you will about Wal-Mart, they (and Amazon) pay in 30 days on the dot. Factoring invoices becomes one's only option. Unfortunately, to make those increased costs, one invariably needs to produce offshore with production timelines stretching 9-12 months in advance. How can you take advantage of trends like that? Besides, the trend among buyers is buying closer to season (immediates, meaning 4 weeks to delivery) which means someone using this (push manufacturing) model is going to have to absorb a tremendous amount of risk in unsold inventory or goods contracted for in transit.

With regard to vendor compliance deployment, retailers have complex vendor standards constituting hundreds of pages. It takes a whole team of people to structure these to say nothing of software and the correct equipment for distribution, packaging and shipping. Failure to comply with their standards will result in hefty chargebacks.

A word: do not print 2/10 net 30 or any other kind of discount on invoices. They'll take the discount (or subtract their own arbitrarily defined one) and pay when they feel like it. What are you going to do? You're up in your eyeballs in debt over vendor compliance deployment and offshore production and they know it.

For startups, it's better to sell to smaller retailers and get paid at delivery. If you become successful and create a brand with presence and value in the market, your next best choice may be to become acquired. Then you can launch your next line in a longer term strategy of being a serial entrepreneur. With a track record, experience, established relationships and a cushion of capital, your next line will only be that much better. Just my opinion (based on 27 years of experience).
By: kathleen fasanella on 6/12/08 at 10:04 AM
Distribution Is Often Key to Success
The article can definately helpful. BUT I think collobration of both countries/ joing hands for development from small people will bring more fruitfull results& more prosperity .I have attended 6 delegationss -two from U.S.A.who wished to have investment there. Do you think that such things can be much sucessful. or joining hands of small/medium entreprenuers?
By: Gajendra Ratilal Mehta on 5/12/08 at 9:21 AM
Can U.S. Manufacturing Companies Compete in the Global Economy? Yes!
Good illustration of how being specific leads to more business, Mike. I added the link to your post at the end of mine. Thanks for carrying on the conversation. Anita ...
By: Anita Campbell on 4/28/08 at 4:51 PM
Get Rich - With a Niche!
Take the case of the tee-shirt I bought in 1995 from Macy's during a sale while on a visit to New York. I still wear it! The problem with American companies is the mindset of its top executives with short-term gains in mind. A New York attorney told me on his first visit to India a few years after economic liberalisation in 1992 that he was amazed to see opportunities in India that corporate America refused to see: Strong judicial system and an English-speaking workforce with technical talent. Americans also forget that they built their wealth because of innovative spirit. But that spirit is missing when it comes to investing in India. Here is an opportunity that American corporates are squandering away. The China-fixation will prove wrong. Dont put all eggs into one basket. At least in India there is a working democracy and clear rules and regulations. Corruption is there, but it is there in China as well. Remember an aggrieved American investor can always call a press conference and air his views. Freedom of press that Indians enjoy here is to be frank much more than what you have in the US. Take the case of Iraqi coverage. The embedded journalists are misleading the public. But here in India you always hear dissident voice, and as a reader you have the opportunity to listen to all sides and make independent judgement. Alas, American CEOs dont understand the value of investing in India.
By: KS Nayar on 3/12/08 at 8:47 PM
Orders Down? Sell to India!

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