Little Time to Fill Orders?

Question:

Ron, to answer your question as to why I need to make HP soap…..I have so little time to fill orders. My large customers give me no time at all. I generally only have a week with large customers.

Answer:

We used to have over, 450 accounts, ocean to ocean and always managed to deliver in a couple days. You have to watch that the customer does not end up running your business. There is always a way. I will tell you this, and I am trying to help you. The way you are operating is extremely rare. It is costing you time, money and I am guessing, a lot of stress.

Standardize your scents, limit them to a certain quantity. By doing this, you increase your buy volume and lower your Cost Of Goods Sold. For special scents or blends, publish your wait time clearly and always beat that time. Never deliver late, if you can help it, that is worse than giving them a longer time frame. Have everything needed for the completion of the order ready, when the soap is ready, labels, boxes, packing, etc.

For hotels, we used to negotiate, 6 month, 1 year contracts. They told us how many of each scent they wanted based on their previous sales for each quarter of the year. We would produce that amount and 5% to 10% more, having all ready in plenty of time. We would deliver on time and if they needed a little more, we had it available. Any extra was stocked until the next order, so we never really had more than a little over.

It all takes a little planning but in the end, you take far less time, pay far less in raw materials and are not, “Under the Gun” all the time. Usually, the customer in the end, is actually able to pay less; because the orderly way the product is produced and sold, is a savings to both of you. You are therefore more competitive. Your customer in the end will spend less time ordering, paying for orders, accounting, etc.