"If we sold 10 of something in the old days, we would make 12 and count on reorders. Now if we sell 10, we make 8 and chase the business. I'd rather have missed a sale than have an unsold garment". Marty Staff, CEO of JA Apparel, on the "new normal"
Ok, let me break this down Marty, in the past you could count on buyers not ordering enough and then going back into market and ordering more, Correct? Did you forget the reorders were all at off price. Next ,Now if you get an order for 10, your only going to make 8, assuming (mmmm) that there will be at least 2 buyers canceling orders, Correct? But what if these buyers are actually smart enough to know how to buy, and all 10 keep their orders. Now you have to decide which 2 will not get their order, because in todays market, manufacturers are cutting to orders and that's that. I would not want to be you when a buyer calls and landblasts you about not getting there goods. And for your last statement, "you would rather lose a sale", YIKES A ROONIE, not a very glamorous statement, but what retailer in todays market can afford to lose a sale, or send a customer to another place (reference to Miracle on 34th St) I do not know too many out there that are willing to bet let's say your salary that any store out there can afford to lose a sale, let alone a customer.
As Donald Trump would eloquently put it "Marty your fired"
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