EVERYTHING IS TOO EXPENSIVE, especially in the HOME SECTOR. What are Manufacturers & Retailers supposed to do to cut costs?
Bill Napier
"Hands On"Marketing Consultant igniting B2C & B2B brands focused on driving growth & profitability. Noted Writer & Speaker specializing in business transformation. PROUD USAF VET
Being a manufacturer or retailer in the Home Category is tough, VERY, VERY tough.
Container costs are through the roof, and there seems to be no light at the end of this dark tunnel
Manufacturers are being forced to raise costs to cover these expenses at a time when consumer confidence is tanking, buying a home is out of reach for the greater population, apartment rental costs are skyrocketing and so many more difficult economic indicators.
I just read some manufacturers are cutting back on their independent Sales Reps.
This could be because some of these Reps are not performing, but I think it may be to save money, bringing the responsibilities in-house, and have a salaried person handle those responsibilities.
Personally, I think this could be a short-term solution that may hurt them in the long run, who knows?
What can you do to cut costs and save money?
If you are a retailer, step #1 is to invest heavily in GMROI and "just-in-time delivery".
This reduces:
Borrowing costs
Inventory costs, warehousing, electricity, people, and more. (Contact me and I'll send you a link that fully describes everything you need to know about GMROI - bill@imagineadv.com)
Overall, both manufacturers and retailers must look at another solution. Outsourcing many of their current salaried job responsibilies
Fox Business Just did an article stating....Corporations leaning on freelancers, expert says
92% of companies said expect to work with more freelancers in 2024
Let's talk about Marketing.
The average Marketing Executive Tenure is 2 years or less.
The investment in a Marketing Executive and their team is not inexpensive. The average compensation for just a seasoned Marketing Executive runs $125,000 - $150,000/year+
Let's discuss why you should consider outsourcing this function to a seasoned and knowledgeable company.
We wrote about this a while back: https://rb.gy/77xs0s
Let me show you why:
#1) You don't hire an individual, you hire the whole team of experts.
Today it’s harder than ever to find good employees, much less to keep them. Consider the savings when using a company like Imagine.
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a) No computer, software, or other ancillary costs/expenses
b) No insurance (medical, dental, life) – Approximately (12%-15% additional)
c) No 401K/Profit Sharing Contribution – Approximately 2%-3.5% additional (Optional)
d) No Payroll taxes (company paid portion) – Approximately 7%-9% additional, company paid portion
e) No employee bonuses – Ranging from 3%-7%, depending on overall compensation package
f) No Additional expenses
And these are just a few costs to consider
Consider this, especially when the marketing paradigm is changing monthly.
How much “real profound knowledge” does your current marketing person have?
Do they adapt, change, and grow with the times, or do they only practice what they knew when you hired them? I bet that they don’t evolve, that’s why they have a short shelf life.
Two more reasons to look outside for a company like us to handle your marketing.
We believe that we want to addict you to the candy, not the medicine…with tangible results.
“If your goal is to hire and keep talented people who will move up the corporate ladder, then the employee option may be the way to go.”
Think about this seriously. Look at what you get when you hire an experienced "Team" to help you meet and exceed your business objectives.
AND...it will be a lot less expensive than what you are currently paying for one or two people for all the expertise in all the categories below
PLUS...we know the HOME business