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Read the WELCOME ALL BMWFANATICS post.
do you pay beggars ? ......because I am now begging !
- Thread starter Ralf*
- Start date
Ralf*
///Member
I am with embarrasment watching this thread every few hours.
I also have a meeting with Mr Arbee and Fuzz on Saturday to see if anything can be done.
Thanks again for all the kind words and the advice given so far.
essentially our mountain of debt has just kept on growing and growing every month, to such an extent that I am now sitting with supplier accounts 60 and 90 days in arrears, and this means that my ability to purchase goods to have in stock for the "supposed" bumper festive season, is seriously hampered.
we are regularily turning away/driving away "drive in customers" as we don't have stock anymore (limited stock), and cannot see how I am going to purchase enough goods to make the festive season a good one.
These unpaid suppliers have now started legal action to get their money owed to them, and without the ability to sell anything, because we don't have enough stock, means that the earning ability (turnover) is slow, and thus the amounts of money we make, don't come anywhere close to being able to settle our accounts.
thank you to the money transfers recieved so far, every bit helps, even if only a rand or two, it all adds up, to being able to make a lump sum payment to one or two suppliers, and then possibly be able to make a small order to increase the stock level for the festive season, so that we actually have something to offer/sell something to clients that drive in.
otherwise I am scared that the only option is to declare insolvent/bankrupt/liquidation, and allow that process to follow, and the implications it has on the staff, and on my self.
at the moment the ideal type of trade is one where we do only labour related items, and the clients bring their own spares/tyres etc, that way we don't need to go further into debt with the few suppliers that we are still on good terms with.
I don't know anymore ??
I also have a meeting with Mr Arbee and Fuzz on Saturday to see if anything can be done.
Thanks again for all the kind words and the advice given so far.
essentially our mountain of debt has just kept on growing and growing every month, to such an extent that I am now sitting with supplier accounts 60 and 90 days in arrears, and this means that my ability to purchase goods to have in stock for the "supposed" bumper festive season, is seriously hampered.
we are regularily turning away/driving away "drive in customers" as we don't have stock anymore (limited stock), and cannot see how I am going to purchase enough goods to make the festive season a good one.
These unpaid suppliers have now started legal action to get their money owed to them, and without the ability to sell anything, because we don't have enough stock, means that the earning ability (turnover) is slow, and thus the amounts of money we make, don't come anywhere close to being able to settle our accounts.
thank you to the money transfers recieved so far, every bit helps, even if only a rand or two, it all adds up, to being able to make a lump sum payment to one or two suppliers, and then possibly be able to make a small order to increase the stock level for the festive season, so that we actually have something to offer/sell something to clients that drive in.
otherwise I am scared that the only option is to declare insolvent/bankrupt/liquidation, and allow that process to follow, and the implications it has on the staff, and on my self.
at the moment the ideal type of trade is one where we do only labour related items, and the clients bring their own spares/tyres etc, that way we don't need to go further into debt with the few suppliers that we are still on good terms with.
I don't know anymore ??
zaleonardz
Well-known member
Ralf,
With that plan, of only supplying labour, your rent to revenue ratio will mean that your out of pocket and better off liquidating.
House as collateral for further overdraft ?
Sell a spare car if you can.
January is going to be rough, and you have nov and half of december to provide for january and feb, market only really comes back in March.
Or, put the place in the market for 200k or something stupid for a quick sale.
I know that it is a fraction of what you paid, and your going to loose a shit load of money, but rather do that then liquidate, as you will then still have the debt, and even less to show for it.
Liquidation gives you cents on the rands, and after the liquidation, you are still liable for debts that did not get squared.
At least this way, you walk out with your credit record still in tact.
Another alternative is that you go and speak to some of the bigger shops in your area, explain to the owner your situation, and see if he is willing to provide stock on consigment, and just take a much lower margin.
With that plan, of only supplying labour, your rent to revenue ratio will mean that your out of pocket and better off liquidating.
House as collateral for further overdraft ?
Sell a spare car if you can.
January is going to be rough, and you have nov and half of december to provide for january and feb, market only really comes back in March.
Or, put the place in the market for 200k or something stupid for a quick sale.
I know that it is a fraction of what you paid, and your going to loose a shit load of money, but rather do that then liquidate, as you will then still have the debt, and even less to show for it.
Liquidation gives you cents on the rands, and after the liquidation, you are still liable for debts that did not get squared.
At least this way, you walk out with your credit record still in tact.
Another alternative is that you go and speak to some of the bigger shops in your area, explain to the owner your situation, and see if he is willing to provide stock on consigment, and just take a much lower margin.
icechilli
///Member
Im sorry for your plight Ralf - Is there anything you can auction or sell on special for fanatic members? Maybe you need to start a loyalty card system or have more promos. Do some pamphlet distribution in the area aswell. Start casting your net a lot wider and do value added service like a carwash and vacuum, free safety checks, you need to increase foot traffic into the store.
I will pledge an amount to help you out and keep you in prayer.
I will pledge an amount to help you out and keep you in prayer.
gavsadler
///Member
It is saddening to read stories like this, mostly because I can relate.
I do have a suggestion though that may be helpful and bring in some cash:
Rent space on lifts. It seems to be a successful concept overseas. Something like R100/hour and then scale down the charge the longer the car is on the lift.
There are plenty of occasions where I wish I had access to a lift. It's not that I need someone else to do something on my car, but it would make it easier for me to get things done.
I hope things turn around, but the reality is that things are dire out there, across all industries.
I do have a suggestion though that may be helpful and bring in some cash:
Rent space on lifts. It seems to be a successful concept overseas. Something like R100/hour and then scale down the charge the longer the car is on the lift.
There are plenty of occasions where I wish I had access to a lift. It's not that I need someone else to do something on my car, but it would make it easier for me to get things done.
I hope things turn around, but the reality is that things are dire out there, across all industries.
RAArmstrong
///Member
gavsadler said:
This is a really good idea! You know how many time's when working on my car I've wished I had a lift handy I could use? Countless times! That's something I'd pay for!
Ralf*
///Member
Hugo_za said:
During the quieter times of the month from about the 4th of the month until the 15th of the month, we would EASILY be able to accomodate these requests
After the 15th there is a "mini-payday" for some members of the public and trade normally picks up a bit
after the 25th of the month things become difficult, as then most people get paid, and the trade starts to pick up
that being said, on most days, there is almost no activity for the first few hours of the morning, so the early birds could be easily accomodated.
Seeing as we haven't really done this before, we haven't actually got a price yet in mind for the rental of one of our lifts....what would be a respectable amount to charge ?
we have 2 drive on lifts mainly for exhaust work, and then we have 2 lifts that lift up the entire car (suspension in free air)
Ralf@Speedway Motorsport said:
If such is the case, charge a rate for premium times of day or for premium times of the month, that way you maximise the potential earnings.
boost3d
Honorary ///Member
i honestly would pay to hire a lift...
you can add to that by "hiring" out the use of your tools
example1, lift hire only R100 an hour
example2, lift hire with the use of tools R200 ( beats me having to carry my toolset etc, just dont include consumable items like welding and grinding equipment) but ideal for someone who wants to do an oil change or something simple on their cars
you can add to that by "hiring" out the use of your tools
example1, lift hire only R100 an hour
example2, lift hire with the use of tools R200 ( beats me having to carry my toolset etc, just dont include consumable items like welding and grinding equipment) but ideal for someone who wants to do an oil change or something simple on their cars
splintheter
///Member
Hey Bud, just read this entire thread.
I know exactly what you are going through, and I also know that this fact doesn't help you one little bit.
My first Business went under 10 years ago, and when it went under so did I. Bankrupt and liquidated at the age of 25.
The Point is, there is always away out and a way back.
And all I can say is I applaud you for not being to proud to ask for help, that is generally most people's (including me) first mistake. There are good people in this world, as this forum proves over and over again, and I am sure somehow you will get on top of these problems.
I know exactly what you are going through, and I also know that this fact doesn't help you one little bit.
My first Business went under 10 years ago, and when it went under so did I. Bankrupt and liquidated at the age of 25.
The Point is, there is always away out and a way back.
And all I can say is I applaud you for not being to proud to ask for help, that is generally most people's (including me) first mistake. There are good people in this world, as this forum proves over and over again, and I am sure somehow you will get on top of these problems.
