perspective needed imo.2 Feb 2021 08:59
the syme model provides mid transaction finance as a bridge saving the strain on w/c - thats my summary.
ive read a lot of posts that seem a bit lost as to why the co will be successful, in this new age, but a few points have to be taken into the equation that are no longer just variable.
a. its my understanding that freight co's from the far east are charging x4 the usual container rates due to covid.
b. the time frame to del is extended by a wide margin, hitting seasonality trends.
c. warehouse space cost is increasing.
d. a lack of retailers/businesses and their physical footprint reduces available onsite space, the store cannot also be the warehouse anymore.
leaving the world to online only, given the cost of customer acquisition (advertising and other marketing/discounts costs are now getting close to physical premises costs on some p&l's as competition to buy customers becomes intense) so many will rely on bridging finance methods to ensure the stock they have ordered and waited for can be delivered and sold right there and then, given the business will have been busy spending money warming its market up pre delivery.
the new world of management wants orders shipped, delivered and sold immediately to reduce warehouse, freight and associated marketing costs.
the only way i can see this being achieved, in a business model, is the intro of a syme type service that funds the operation from initial purchase order to quayside.
i do think syme is a good biz model as it reduces a working cap call on inventory, and gives a business more money to spend on customer acquisition.
all imo.. just looking at it from how i think a business would use the service of syme and what the obvious benefits would be.
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