David
Montgomery, 47, and married with three children, was made
redundant
by an office supplies firm in the Midlands, following a
takeover.
He
had worked there for nearly three years, knew a lot about the
business,
and so decided to set up on his own.
This
is his story.
From
my relatively short experience, I knew that the margin of
profit
on most office supplies is greater than for just about any
other
product sold at retail, with profits on many items running
as
high as 300%.
I
was also aware that most Office Supply companies are quite large
concerns
with consequently large overheads, which includes rent
for
attractive branches in expensive areas, wages for telephone
and
other office staff, commissions for the expensive
representatives,
delivery vehicles, etc.
Additionally,
not many people appreciate that all the suppliers
have
two sets of prices for everything in their glossy free 300
plus
page catalogues - one set in the free catalogue for their
'direct'
customers, serviced by their own reps, and one (with no
name
on the cover, for independent agents) for which they charge
around
two pounds.
I
operate entirely from home, using a cheaply shelved Talbot
Express
high roof van (they have more inside space than any other
similar
vehicle) which I have on a three year lease for just over
$45
per week, including servicing.
Originally,
my wife answered the telephone at home and took
orders
and enquiries whilst I was out delivery brochures to
potential
customers and requested items to existing customers, but
I
now have a smart vodaphone in the van, obtained by taking up one
of
the cheap offers in the National Press.
The
rental is just $25 per calendar month, and as I rarely make
outgoing
calls, the 25p per minute cost of these is not a problem.
I
do however make use of the rather clever 'call transfer' system,
which
automatically at the press of a couple of buttons, transfers
any
calls to me direct to my home telephone.
This
ensures that I don't miss any calls whatsoever; the small
cost
of this really does pay off as I need never miss a call,
which
is much appreciated by my customers.
In
this way I have totally eliminated nearly all the overheads
normally
associated with this type of business.
Additionally,
since I need no other assistants, there are no wages
and
so on to be paid.
I
have established a regular route of small offices and businesses
in
the area which I call on weekly, taking orders and making
deliveries
there and then of the faster selling items.
Other
items are obtained usually the same day and because I have
reduced
the overheads to nothing more than the expenses of
operating
the van, I can undercut all my competitors by a wide
margin.
Although
anyone automatically gets at least 30 days to pay for the
items,
as I do from my suppliers, I also offer a straight 10%
discount
there and then for cheque on delivery.
An
amazing 70% of the smaller customers are quite happy to do this
-
saving us both money!
I
have had no problem in obtaining all the customers I can
conveniently
serve; you could do the same.
Start
by looking in your local Yellow Pages under Office
Supplies.
Nearly
all the companies listed there will supply you with their
catalogues
with blank covers for your own name.
I'm
now (after only 18 months), making a take home pay of an
average
$900 + per month.
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