Tuesday, October 12, 2010

BELIZE HOT ENTREPRENEURIAL IDEA ! OPPORTUNITY KNOCKS!

HOT BELIZE ENTREPRENEURIAL IDEA FOR BUDDING YOUNG PEOPLE TO GET IN ON THE GROUND FLOOR!

DISTRICT GENERAL DISTRIBUTOR CENTER SERVICES!

Belize badly needs a distributorship system, from everything made by small producers in Belize. The small producers have no good way of selling their stuff NATIONALLY all over in the DISTRICTS. You name it, there is a problem! You want to sell books? You want to sell CHARCOAL bags made here? You want to sell CHEESE? You want to sell JAMS? You want to sell IDEALS? You want to sell Diatomeous Earth? You want to sell ICE CREAM? You want to sell processed/packaged meats? You want to sell KETCHUP, COCONUT OIL, COHUNE OIL, around the nation?

The CAPITALIST system relies on distributors. The manufacturer/producer sells their product to a distributor in bulk quantities. The Distributor sells smaller amounts with a 33% mark up for warehousing and inventory to WHOLESALERS. The WHOLESALERS sell to smaller local retailers in very small quantities for another 33% markup. Usually a single case. The retailer usually has a flexible profit margin, in competition with other nearby local retailers. The Hindu shops quote high and keep dropping the price, if you prove a hard sell at the retailer level. In Guatemala they do the same thing. They start by quoting you a price retail sometimes 200% more than an item is worth, then they keep reducing the price with a discount. The idea is to sell, even at a 5% profit, but sell. Never let a customer get away if you can make a profit. Moving stock, or inventory is the name of the game. Keep rotating the inventory. In Belize the distributor and wholesaler effect in the chain of distribution of the capitalist system is often done by the manufacturer to garner more profit. Sometimes wholesalers do the same thing, by breaking up an order for a dozen canned meat, or canned milk, into individual unit retail sales. In Belize currently, distributor systems almost exclusively exist for imported foreign merchandise, ( they call them agencies sometimes ) yet there is a growing local production of many items to be sold, that need local district distributor systems.

However you do it, the system often works on consignment. Meaning a 30 day credit based on honesty and reputation, established by performance. We do not yet have any Insurance Company in Belize providing INSURANCE BONDS for businesses, to guard against theft, or defaults. This distribution system greases the wheels of commerce and enables small producer/manufacturers to start on a shoe string budget and grow in size, according to sales and public demand. I don´t know if they are teaching this in High School? The knowledge though is basic to how a good business economy works.

Each district in Belize needs a GENERAL DISTRIBUTOR for local produced/manufactured goods, that usually consists of a warehouse and a delivery truck. The distributor handles sales to the wholesalers and the wholesaler handle sales to retailer, who in turn handle sales to the individual customer. This GENERAL distributor business is missing in Belize but rapidly becoming a necessity as our population and economy grow. With 30 day credit, anybody in the chain of supply, if they can turn over their inventory of goods in one month, actually gets to operate cash free almost, if they are paying on time in 30 days and are moving the stock rapidly. The manufacturer/producer at the beginning of the chain is the one financing the whole distribution system nationally.

THIS IS A SPENDID TIME IN THE DEVELOPMENT OF BELIZE TO START A DISTRICT DISTRIBUTORSHIP. THOSE RECENTLY GRADUATED MBA´S NEED TO GIVE IT A GO!