This week, we experienced price increases on raw materials. Including metals, plastic, fabric, packaging and of course freight. We are a Canadian manufacturer and you would expect freight… is our advantage… No, we offer dealers lower volume more often. This is a requirement to manage lower inventories and achieve larger cash flow. To grow manufacturing & employ more Canadians and Americans, the freight companies need lower cost solutions to moving products within North America, not full container loads from China. These full containers leave dealers with large inventories and lack of cash flow… Still wondering how to improve our economy?
Metal increases are the highest and most other increases are small for the time being, but based on what I’m hearing, there may be additional increases coming soon. Dealers are pushing back but maybe less so than in the past. The good ones know the importance of manufacturing in our economy and will support us… to a point. We also know that people are concerned with how much they spend and to be the top dealers in the industry, they must get the best price (hence the pushing back) & the most innovative products available.
I am aware that we can not stop full containers from China… on all products. All our customers have direct imports from China, and they are seeing price increases from them as well. Are they as much as ours? We wish to keep the valuable communication open with our much appreciated dealers and walk this very fine line….retail business is fragile and because we live in this economy as well, we are concerned on how these price increases will impact revenues. Revenues in the hands of the people making the products… The same people who are purchasing the products as-well.
Thursday, I flew to Atlanta for meetings with Home Depot. They opened their first two stores on June 22, 1979, in Atlanta, Georgia. The first stores, at around 60,000 square feet each, stocked 25,000 products and empty boxes piled high on the shelves giving the illusion of even more products.
I would like to thank everyone’s efforts in arranging this meeting. I feel we learned why Home Depot is successful and how manufacturers share in their success. While offering an opportunity for Canadian made tools to provide innovative products, giving the consumer the latest and greatest addition to Home Depot.
While I was on the road this week my youngest daughter Victoria, my Angel, turned 12 years old and is on the doorstep to her teenage years. Yes, you read it correctly, my youngest… where did the time go? I don’t feel that old, well maybe my back.
Another birthday missed, is the hardest part of what I do, a necessity for salesman. I want to wish her the happiest of belated birthdays and look forward to celebrating it with her soon… in person when I return. This gives me something to look forward to while spending long hours traveling.
I’m proud of Victoria who shows her commitment to dancing, always willing to help her mom around the house, taking Rollie for a walk and showing how much she loves her brother & sister. Victoria you bring love & togetherness to the Levangie family & I Love you very much.
All the Best, Shawn Levangie