Small Business Owners or Businesspeople in general:

[Mike 03]

If suddenly the entire inventory of a small to mid-size and very reputable company is 40% off, is that a sign that something is wrong with the company itself, or just an indication that no consumers are consuming this product?

I received a message today that a place I buy from frequently is severely cutting prices. This evokes mixed feelings, because their products are probably overpriced and it is nice to get them for less, but with that comes the reality that they are probably struggling, and they may not be much longer.

What conclusions if any can I derive from these 40% price cuts? Maybe nothing other than that they are overstocked right now as the economy wanes? Or that they are in bad trouble?

[kohodog]

1. What kind of stuff?

I think everybody is on the brink now. I had a printing company that went bust after 911 ( a year later, perhaps the Iraq war had more impact). There is no cash available for businesses these days and many of the big guys (fortune 500) are holding their payments. I would try to have a conversation with your suplier especially if you have a relationship. Maybe there is some way you can help the through this if you're in good shape.

[Mike 03]

4. Hi, these are nutritional supplements.

In some extreme cases, something ordinarily going for seventy dollars is going for twenty five bucks or so.

[Elwood P Dowd]

2. Cash flow.

They need cash to pay salaries, bank loans, taxes, utilities, etc. Every small business I know is suffering and just trying to survive to fight another day. That often means selling stuff at cost just to keep the doors open a few more months

[Mike 03]

5. Thank you. It's good to learn this stuff. I want to be a good customer. I know people

there. But like everyone else, I'm cutting back a lot on this kind of discretional spending.

[Fresh_Start]

3. its worrisome that its the entire inventory

Assuming they have a diversified inventory