I have bad news for my soap distributors!!
June 6, 2008 by Fadzuli
Apparently the hike in prices has also affected the raw supply and manufacturing prices in Malaysia. The Taharah Soap manufacturers will also be increasing the prices for distributors from 1st July onwards.
Unfortunately they never moved the retail price resulting in lesser margins for us distributors and stokists. They may have their reasons for it because the price of the soap in Malaysia is already at its premium rate which is almost $6 Rm. Pushing it up may cause the consumers not to buy it.
I guess this is the sad part of being distributors. I’m looking to raise the price of the soap but my main worry is that other competitors may not be willing to push it up due to customer demands and the ever so many comparisons that is happening. Haizz the complexities of running a business..
Anyway to raise or not to raise? In fact I’m considering of stopping this business for quite sometime now since my other businesses have already surpassed the SOAP income but I still believe in its potential…
If you want to know how much the price has risen. It has gone up to $1.50 RM higher than the previous cost. If i were to raise the distributor price, it will mean that my distributors will only get half of what they are earning now in sales which is ridiculously low and personally its not worth doing business at that rate.
Haizzz let me ponder on this problem for a while and give me your opinions tpp.
I think it depends on your market, and your overall profitability in running a business. Some people, they may be running more than one business. So it’s always good to diversify, like yourself.
Lucky you, at least you can still rely on other sources of income from your other businesses.
I think you should rate the hour of effort you put in for that soap business. If you are only earning $1 per hour for running that business, I think it’s better you stick to whichever business you are already running which gives you a better rate.
For other people who has only this soap business, if it’s your only lifeline, then be more creative.
1. expand your market (by searching for new markets, or new distribution channels
2. market more (never stop marketing, even in bad economies!)
3. be more creative in your packaging and marketing (e.g. bundle your soap with the sale of books such as “BMT - boys meet tekong”. I am sure the boys will find the soap useful?
and the list goes on…
Be creative at times like these, and never stop marketing.
Zeila
P.S. what happened to Wira Internet? and Abang Abu Tv, etc?
P.S.S great progress with your Internet business
Wah words of wisdom from the millionaires. Thanks for tips!! Dah lama tak dengar khabar?
We realise that we also cannot commit to WIRA INTERNET. Too much time and dividends may not pay off…AbangAbu.TV is in the process of replanning now.
Salaam.
1) Look to your top high-return distributors if you do want to maintain and can afford to. The Return on Assets of these should be the highest.
2) Look back at the Value + Rarity + Imitability (how easy can it be imitated) + Organization strength behind your soap distribution. If you have V and R but not I and O, it’s hard to sustain and remain competitively advantage regardless of your environmental forces.
3) Agreed with Zeila, do product bundling where possible. Look to resources within your reach and means already, it’s a skill in social work that can be aptly applied when the going gets tough for businesses.
4) Do guerilla marketing when budgets are tight.
Wallahualam. All the best! =)
Yeah I guess I have to lose some distributors and focus more on the top selling distributors.
We’ll see how it goes.