Friday, 15 November 2013

How Buying Bearings From A Bankrupt Manufacturer Can Benefit Your Business

The automotive industry is undergoing a major overhaul, with the big three going through bankruptcy, and parts suppliers going under on what seems like a daily basis. With all of these issues going on, more and more people are looking to keep their existing vehicles. Now, automotive repair shops are seeing more business than ever. But this rise in business in the auto repair industry has not translated to the parts manufacturers, because theres simply not enough volume there to replace the missing order from the automotive factories.





But if youre in the automotive repair business, their loss can be your gain. Because these companies are closing their doors, they are liquidating their inventories at extremely low prices. That means more savings on the parts you need to provide services for your customers. Not to mention that we all know that the more money you save on your parts, the more profits that you will have in your pockets. So lets find out just how we can buy these bearings from bankrupt manufacturers, and save your business some overhead.

The first thing you need to do is contact the manufacturers sales department, and find out if their assets, (in this case, the bearings,) or their inventory has been liquidated. If they have, youre too late for this manufacturer, but youll find another one. If they do, know just how many bearings you want to order, and simply find out the price for your order. That part seems simple enough, but just how does this save us money?

To understand this, you have to understand the basic principles of how bankruptcy works. When filing for bankruptcy, most businesses file for Chapter 13 bankruptcy. This type of bankruptcy is filed, and after the proceedings, it is required, (and usually best for the best in question, that the business liquidate of their assets. This helps the company because the liquidation will help to lower the amount that has to be paid back to their lenders. So these suppliers will be desperate to move their inventory, which means that youll be able to get the bearings you need for your business at a great price.

Because the bankrupt business is going to be more willing to work with you on prices, you may be able to negotiate pricing based on bulk orders, free shipping, or any other pricing option that you can think of. They may be less-willing to allow you to finance the purchase, because for many of them, bad financial transactions are a part of the reason why theyre filing for bankruptcy.

By buying from a bankrupt parts supplier, you can save yourself a great deal of money on your supplies. This extra savings will you to do so many things, from paying off debts that your business may owe, to expanding your companys marketing and advertisement, thus allowing you to bring in more customers and make more profits. Just by simply lowering your overhead costs, you can increase your profits.

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