Saturday, March 10, 2012
Much snow this winter?
Many who rely on snow removal are hurting financially this winter season. Last winter there was so much snow and they couldn't keep up in the removal process. But this is not the case this winter. Even though many stocked up ready for a winter and ready to turn over profits and sell stock. One hardware owner which is a friend of mine stocked up his hardware store full of inventory he spent a $100,000. But now as March rolls around he has to cut back profits and try to mark down the items and turn them over, or stock them away and take away from another area of spring inventory. One man states “It’s probably going to take us a few more seasons to recoup some of our investments,” This is a huge burden for many business owners in New Hampshire and the northern regions. If you were a hardware store owner would you stock heavily before winter started? Or any season or wait for that season to start before you order huge inventories?
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This really has been a crazy winter in terms of the amount of snow we have gotten. I can imagine how hard this season must have been for companies that rely on winter. If I were a company, like the hardware store owner, I feel like I would have to stock up before or else you could run out stock and possibly lose customers. It would be more afraid of losing my steady customers than losing money for being over prepared. Also I can’t imagine how much money the ski resorts lost this year with there not being much snow. I know they must have huge overhead cost that they usually make back but I'm not sure about this year. There were only a few weeks that had good conditions this year. Also a company I intern for paid for snow removal up front to get a better deal but it turns out that they are getting a much worse deal because they have only needed snow removal twice all year. Environmental conditions will always be factor when planning ahead you just have to hope for the best and plan for the worst. Does anyone know how bad the ski resorts were hurt this year? Does anyone else have similar stories about over preparing?
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