Friday, December 19, 2008

The Future is Not Now

Buying products like cars, appliances and lighting is tough currently without question. These products need service and/or maintenance in the future. The problem is to ascertain which store will actually be in business in the future. You certainly want that dealer or provider in business 5 years later. Appliances have a rate of repair roughly 18-20% in the first year. You want someone invested in the sale to actually facilitate the repair process.

Some telltale signs of store problems:

1. Bankruptcy: Chapter 11 allows for reorganisation, but what retailer has ever reorganized.
2. Lack of Inventory: Possibly shut off from vendors due to nonpayment.
3. Old displays: Not enough money to reinvest.
4. No sales help or inexperienced help: Paying less for labor is a sign of financial problems (this is not fast food.)
5 Missed deliveries or commitments: Once again, the retailer probably does not have enough credit to pay for the merchandise.

Small tip: Do not buy an extended service agreement from any teetering retailer. Wait a year and contact the manufacturer directly. You will pay more, but at least service problems will be rectified.

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