My toy company's sales were up about 12.5% 2019 vs. 2018 but total profits fell 29% (after netting out distorting expenses and other income) - 40% of our catalog had declining profitability - 42% of our catalog had declining sales - 38% had declining total profits
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Replying to @Molson_Hart
I don’t know your industry. Are these good or bad numbers?
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Replying to @mgirdley
I don't know my industry either haha. Probably bad? I'm not totally sure. I didn't check it for '17 vs '18 where profits improved. The fact that total profits fell implies it is bad I would think.
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Replying to @Molson_Hart
One trick I’ve used is to look at public company filings. For example, I was trying to figure out the right amount to spend on advertising for a business. Looked at what the others were spending and then said “Eff it” and 2x’ed their number! It worked but YMMV.
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Replying to @mgirdley @Molson_Hart
The other thing is asking suppliers. Turned out they are the biggest chatty cathys. they started giving me all kinds of advice or guidance. Some of it was BS but mostly helpful.
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Replying to @mgirdley @Molson_Hart
I’d ask questions like: “So and so competitor seems smart. How do they solve this problem I’m having?” They’d tell me. YMMV!
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Replying to @mgirdley
My suppliers are either based in Asia or big sclerotic corporations, but I should try asking the Asian ones. Would love the different perspective as well. We're in a tough, sort of declining industry, whose only bright spot has been ecommerce.
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Replying to @Molson_Hart
The Asians are the chattiest in my experience, too. Let me know how it goes!
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haha, not mine. it's like squeezing water from a stone.
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Replying to @Molson_Hart
I learned to ask very specific questions I knew they’d know: “What is company X’s biggest SKU order from you?” “What items that sell well am I not ordering?” “How does company X handle their buying process?” And so on.
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Replying to @mgirdley
I need to do more of this. Thanks for this advice!
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