Gone very quiet
Discussion
Low AOV, slim gross margins and high FBA costs can mean there's a lot of turnover, but not much net profit.
I do know, because the guy who works with me on our online/web also works with two firms within the general beauty products sphere, that the growth can be stratoshperic on these products. What no one knows is how sustainable thse TikTok brands will eventually prove to be.
I do know, because the guy who works with me on our online/web also works with two firms within the general beauty products sphere, that the growth can be stratoshperic on these products. What no one knows is how sustainable thse TikTok brands will eventually prove to be.
Digga said:
What no one knows is how sustainable thse TikTok brands will eventually prove to be.
Very very few of them. People are fickle and just want to be seen with the latest label/craze to brag about to their friends, who in turn purchase same so as to not miss out and not be the black sheep. The fad maybe lasts for a year then a new 'latest and greatest' gets shilled by TT influencers and everyone moves onto that one. Rinse and repeat.What was that drink all the kids were paying stupid money for about 6-12 months back? Everyone was talking about it and fighting over it. You never hear of it now and I expect there are warehouses still with stock who cannot give it away.
r3g said:
Very very few of them. People are fickle and just want to be seen with the latest label/craze to brag about to their friends, who in turn purchase same so as to not miss out and not be the black sheep. The fad maybe lasts for a year then a new 'latest and greatest' gets shilled by TT influencers and everyone moves onto that one. Rinse and repeat.
What was that drink all the kids were paying stupid money for about 6-12 months back? Everyone was talking about it and fighting over it. You never hear of it now and I expect there are warehouses still with stock who cannot give it away.
Prime.What was that drink all the kids were paying stupid money for about 6-12 months back? Everyone was talking about it and fighting over it. You never hear of it now and I expect there are warehouses still with stock who cannot give it away.
M1AGM said:
Had a meeting with our building control chap this morning (N Yorks). He said that they've seen a change where there is a lot less smaller projects going on, but the big stuff is still as it was before, very busy.
Planning has f
ked everything.For big firms, they have the overhead and muscle to deal with the bureaucracy, but the smaller ones do not. A guy I know in Cheshire has been waiting 3 months for approval on a driveway job. Took me 13 weeks to get approval for a contractor to trim a neighbour's overhanding oak whcih has TPO. Whole LA system is FUBARed.
There's an increase in the number of people on the Amazon forum complaining it's quiet. I sell on Amazon and it has been eerily quiet this past month and start of April. Outside in the real world though and everywhere still seems busy so people are still getting stuck in - still feels like there's lots of money around - albeit the divide between those who have it and those that don't is getting more obvious. Back to online retail and Amazon in general.. my view is people have got bored filling their houses with cheap Chinese tat and are now being more selective - which doesn't mean there's a slowdown - but more of a shift in buying habits. Buyers are fickle.
Building / tradespeople etc are still crazy busy - this is normally one good indicator of a slowdown in the economy but it's not showing distress yet, and to be fair I don't think it will or needs too.
Habits, fads, and trends will change, but from what I can see is there's still more than enough money in the wider system to keep it turning.
Building / tradespeople etc are still crazy busy - this is normally one good indicator of a slowdown in the economy but it's not showing distress yet, and to be fair I don't think it will or needs too.
Habits, fads, and trends will change, but from what I can see is there's still more than enough money in the wider system to keep it turning.
Son is home from university. His Corsa was making an odd rattling over bumps. Turns out two broken springs on the front.
Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
Some of the present stasis is due to unclement weather - it is so wet it's stopped all manner of both business and leisure activities dead.
Another element though, IMHO, is the BoE base rate. I fear they are too fat, stupid, lazy, antifragile and disconnected to catch the falling blade of another downturn. Rates will remain high for longer than is economically rational.
The current inflation controls are akin to a boxer getting down to fighting weight by amputating a limb. There are never any green shoots after rate recessions.
Another element though, IMHO, is the BoE base rate. I fear they are too fat, stupid, lazy, antifragile and disconnected to catch the falling blade of another downturn. Rates will remain high for longer than is economically rational.
The current inflation controls are akin to a boxer getting down to fighting weight by amputating a limb. There are never any green shoots after rate recessions.
Jordie Barretts sock said:
Son is home from university. His Corsa was making an odd rattling over bumps. Turns out two broken springs on the front.
Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
ECP seem from my observation to trade on their hyper-local delivery. Many local workshops get multiple drops from ECP each day - car comes in, check which parts needed, place the order, wait for the van. No stock holding required.Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
skwdenyer said:
Jordie Barretts sock said:
Son is home from university. His Corsa was making an odd rattling over bumps. Turns out two broken springs on the front.
Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
ECP seem from my observation to trade on their hyper-local delivery. Many local workshops get multiple drops from ECP each day - car comes in, check which parts needed, place the order, wait for the van. No stock holding required.Set of 40mm lowered springs from Euro Car Parts are £147+ vat says my mate at the garage. Umm no, £45 delivered from Ebay using Parcelforce.
So I got them delivered directly to the garage.
Mate at the garage was saying something else about ECP, needed a part for a Mercedes, ECP quoted £150 for a pattern part, delivered today. Umm no, you're OK, Mercedes genuine is only £130. Oh, we can match that!
Seems ECP are trying to maximise margins where they can? Or as those in the trade feel, rip us off, because we're not stupid.
Im no fan of ECP, but i dont think either of the examples are all that fair.
The £45 springs, id wager, will be a different brand. And the merc one, OK, but ordering from main dealers is hard work, slow, will be 1-3 days, and will probably make you collect. All that stuff costs money as a business. Want me to go and collect from the main dealer. Sure. But if it takes 45 mins, that 45mins labour to pay. That £20 saving soon disappears.
monkfish1 said:
Correct. And you pay for that privilege. Along with it being quick and easy to order. And return stuff at no cost. Though im sure as the dominant player now, they use that to their advantage.
Im no fan of ECP, but i dont think either of the examples are all that fair.
The £45 springs, id wager, will be a different brand. And the merc one, OK, but ordering from main dealers is hard work, slow, will be 1-3 days, and will probably make you collect. All that stuff costs money as a business. Want me to go and collect from the main dealer. Sure. But if it takes 45 mins, that 45mins labour to pay. That £20 saving soon disappears.
Other thing with genuine spares, whatever the industry, is that the OEM dealers, even if they are 'cheap' seldom have any stock and, in fact, the UK distrubutor too. So you are waiting for stock to arrive from European parts hubs very often.Im no fan of ECP, but i dont think either of the examples are all that fair.
The £45 springs, id wager, will be a different brand. And the merc one, OK, but ordering from main dealers is hard work, slow, will be 1-3 days, and will probably make you collect. All that stuff costs money as a business. Want me to go and collect from the main dealer. Sure. But if it takes 45 mins, that 45mins labour to pay. That £20 saving soon disappears.
I don't doubt that the springs would have been a different manufacturer. In this instance, my son wouldn't have noticed the quality upgrade. His car is a means to an end. He looks after it, but mountaineering is his thing.
My wife, absolutely does know the difference and that is why she has MeisterR coilovers on her MX5. Horses for courses perhaps.
I was just passing on what my garage had said. They seemed to think there was a shift in the business model of the ECP motor factors.
My wife, absolutely does know the difference and that is why she has MeisterR coilovers on her MX5. Horses for courses perhaps.
I was just passing on what my garage had said. They seemed to think there was a shift in the business model of the ECP motor factors.
Jordie Barretts sock said:
I don't doubt that the springs would have been a different manufacturer. In this instance, my son wouldn't have noticed the quality upgrade. His car is a means to an end. He looks after it, but mountaineering is his thing.
My wife, absolutely does know the difference and that is why she has MeisterR coilovers on her MX5. Horses for courses perhaps.
I was just passing on what my garage had said. They seemed to think there was a shift in the business model of the ECP motor factors.
I suspect ECP have indeed changed their policies. Given what I've seen lately on parts I've needed, I'd say they've stopped trying to compete. GSF are often far, far cheaper, for instance, never mind the eBay sellers of (often very dubious quality) parts.My wife, absolutely does know the difference and that is why she has MeisterR coilovers on her MX5. Horses for courses perhaps.
I was just passing on what my garage had said. They seemed to think there was a shift in the business model of the ECP motor factors.
Digga said:
Low AOV, slim gross margins and high FBA costs can mean there's a lot of turnover, but not much net profit.
I do know, because the guy who works with me on our online/web also works with two firms within the general beauty products sphere, that the growth can be stratoshperic on these products. What no one knows is how sustainable thse TikTok brands will eventually prove to be.
The key is getting the MUA’s using the kit as well as fad selling on TT. (MUA - make up artist, TT TikTok for anyone acronym adverse ;-) I do know, because the guy who works with me on our online/web also works with two firms within the general beauty products sphere, that the growth can be stratoshperic on these products. What no one knows is how sustainable thse TikTok brands will eventually prove to be.
skwdenyer said:
I suspect ECP have indeed changed their policies. Given what I've seen lately on parts I've needed, I'd say they've stopped trying to compete. GSF are often far, far cheaper, for instance, never mind the eBay sellers of (often very dubious quality) parts.
GSF belong to same parent company as ECP.
Digga said:
Some of the present stasis is due to unclement weather - it is so wet it's stopped all manner of both business and leisure activities dead.
Another element though, IMHO, is the BoE base rate. I fear they are too fat, stupid, lazy, antifragile and disconnected to catch the falling blade of another downturn. Rates will remain high for longer than is economically rational.
The current inflation controls are akin to a boxer getting down to fighting weight by amputating a limb. There are never any green shoots after rate recessions.
But if USA can keep rates high, and get growth, and the UK can’t, and lowers rates, doesn’t GBP debt become worth less?Another element though, IMHO, is the BoE base rate. I fear they are too fat, stupid, lazy, antifragile and disconnected to catch the falling blade of another downturn. Rates will remain high for longer than is economically rational.
The current inflation controls are akin to a boxer getting down to fighting weight by amputating a limb. There are never any green shoots after rate recessions.
Then you need higher rates to interest investors in UK debt?
Ie, base rate can go down all it likes but while USA offers a higher return in USD you’re gonna take it.
And in 2005 we had a similar base rate and growth through into 2007, with rates even increasing a bit iirc.
Can we genuinely cut rates while everyone else isn’t?
China is easing and they’re clearly struggling.
Gassing Station | Business | Top of Page | What's New | My Stuff