Transair Fairoaks closing:-(
Join Date: Jun 2003
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Fuji - are you speaking with knowledge of Transair's published accounts? I haven't seen them (and have no reason to).
I wonder how much of their "stock" is loan stock. I used to know somebody who ran a hi-fi shop, and almost none of his stock was paid for. It was on a permanent "sale or return" from the manufacturers. I also happen to know somebody who used to make specialist top-end hi-fi and he found the business (the aforementioned hi-fi shops) absolutely horrid to deal with because he had a load of stuff out on this permanent loan system and didn't get paid for anything until the item was sold, and then he had to send out another "SOR" item to replace the one that got sold
These days, a lot of mail order business is done by 3rd party order fulfilment. You buy a Miele fridge from some online shop, but the fridge is delivered directly by Miele. The online shop is entirely virtual - no stock carried. I have no knowledge of how online pilot shops work but obviously the more valuable items could be done that way.
Also, 80% of stock is likely to be slow moving anyway but hopefully it makes up only 20% of the stock value Also, the slow moving low-value stuff is going to be helluva high margin stuff - a fuel sampler for £10 which comes from China for £0.30.
If I was running a pilot shop, I would make sure that only the old tat (like fuel samplers) is actually stocked, and I would buy it from China in bulk, for next to nothing. And I would do the high value stuff (GPSs etc) either mostly on back to back ordering, or by 3rd party fulfilment by getting e.g. Garmin to despatch the item direct.
I wonder how much of their "stock" is loan stock. I used to know somebody who ran a hi-fi shop, and almost none of his stock was paid for. It was on a permanent "sale or return" from the manufacturers. I also happen to know somebody who used to make specialist top-end hi-fi and he found the business (the aforementioned hi-fi shops) absolutely horrid to deal with because he had a load of stuff out on this permanent loan system and didn't get paid for anything until the item was sold, and then he had to send out another "SOR" item to replace the one that got sold
These days, a lot of mail order business is done by 3rd party order fulfilment. You buy a Miele fridge from some online shop, but the fridge is delivered directly by Miele. The online shop is entirely virtual - no stock carried. I have no knowledge of how online pilot shops work but obviously the more valuable items could be done that way.
Also, 80% of stock is likely to be slow moving anyway but hopefully it makes up only 20% of the stock value
Also, the slow moving low-value stuff is going to be helluva high margin stuff - a fuel sampler for £10 which comes from China for £0.30.If I was running a pilot shop, I would make sure that only the old tat (like fuel samplers) is actually stocked, and I would buy it from China in bulk, for next to nothing. And I would do the high value stuff (GPSs etc) either mostly on back to back ordering, or by 3rd party fulfilment by getting e.g. Garmin to despatch the item direct.
Join Date: Feb 2007
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In addition to this, I would also try to keep a grasp of what items are current, and heavily discount the ones that are not.
In the shop I mentioned, they are very happy to sell outdated VFR charts at full price, and they'll even sell you Bottlang binders for the full price. No discounts possible, even if you mention that the stuff is no longer current.
In the shop I mentioned, they are very happy to sell outdated VFR charts at full price, and they'll even sell you Bottlang binders for the full price. No discounts possible, even if you mention that the stuff is no longer current.
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I am 99% sure these shops must have a stock protection deal on stuff that expires (charts etc). Like newspaper shops which return unsold newsprint.
If they haven't got stock protection, the pilot shop business must be a mug's game. Unless they buy these products for practically nothing (say 5% of selling price), which I am sure is not the case, especially with anything where UK Ordnance Survey is even remotely involved
If they haven't got stock protection, the pilot shop business must be a mug's game. Unless they buy these products for practically nothing (say 5% of selling price), which I am sure is not the case, especially with anything where UK Ordnance Survey is even remotely involved
