.BID for Small Businesses

Globally, businesses are sitting on over $8 trillion excess inventory* (manufactured products that are sitting in warehouses waiting for a buyer). To put that in perspective, that is equivalent to the gross domestic product of China.

For manufacturing businesses around the world, the majority of which are Small or Medium sized Enterprises (SMEs), it is desirable and often essential to be able to turn over stock as often as possible. Unsold stock is cash drain on manufacturing businesses, pushing up the overall cost of manufacture though storage costs. In addition, excess stock contributes to reduced profit margins, since excess stock is often sold at low margins provide cash to keep production lines running.

Fortuneteller

In recent years, due to the global economic downturn, businesses have seen stock levels rise to unprecedented levels. For example, in 2009, semiconductor stock levels rose from $3.8 billion to $10.2 billion within the space of 3 months, putting a serious strain on the industry and its suppliers.

Excess inventory is usually sold, often at a significant price reduction, to online and offline discount retailers.   Middlemen such as brokers and wholesale distributors provide services to place excess inventory with different customers around the world.  A number of middlemen are virtual electronic marketplaces which auction overstocked goods online.  However, after a period of continued economic downturn, most such marketplaces have discontinued operations due to a failure to realize their business plan.

With the introduction of new style web addresses, where the letters after the final dot can be almost anything, manufacturing businesses are beginning to use these low -cost, new extensions as a means of creating an easily found, online space where they can dispose of excess inventory directly to a consumer with no brokerage or distribution fees or costly pay-per-click advertising.

New style web addresses using exact search terms rather than company names, differentiate websites and make them easy to find online. For example www.electronic-components.bid or www.excess-welding-consumables.bid match a user’s search engine query and inform the user that they could bag a bargain at auction.

For the manufacturing business, having a direct link to the buyer is beneficial as it permits the opportunity to build a longer term relationship which will help smooth out undesirable lumpy manufacturing cycles. However, just as importantly, it allows businesses to retain control over how much inventory to release, at what time and at what price.

So, SME manufacturing businesses looking to exert more control over stock levels should consider a new-style .BID web address to let the world know that they have product to sell and are prepared to deal.

Andy Churley CMO at FFM

Andy Churley CMO at FFM

 


 

*according to a report by the Council of Supply Chain Management Professionals

How to .TRADE with the BRICs

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The term BRIC nations refers to a grouping of the countries of Brazil, Russia, India and China, which are considered to be at a similar stage of newly advanced economic development. Although considered to be ‘new’ economies, BRIC nations have a combined economic power nearly twice that of the USA. BRIC nations are looking to trade with the entire world and the world is looking to trade with the BRICs.

In BRIC nations, for the millions of Small and Medium sized Enterprises (SMEs), international trade often begins on the Internet and,with no legacy investment in .COMs. The BRIC nations are happy to registering new style exact match keyword web addresses. There has already been a surge in adoption by the BRIC nations of new-style web addresses with a strong showing in the newly launched .TRADE registry.

So, SMEs wanting trade internationally should consider a new-style .TRADE web address to tell everyone they are ‘open for business’.

For example consider:

    • www.sheet-metalwork.trade,
    • www.industrialrivets.trade 
    • www.electrical-components.trade.

As a way of getting your businesses in front of customers looking online for the products you produce.

Andy Churley CMO at FFM

Andy Churley CMO at FFM

Surprise surprise! The Internet is changing!

Ninety percent of the first domain names registered were company names, but over the years browsing habits have changed and search engines index ‘what you do’ not just who you are. Nowadays, the most trafficked websites are those containing keywords.

The good news is that the Internet is changing, hundreds of new Top Level Domain suffixes (the letters to the right of the final dot, e.g. .com, .net or .org) are launching. So now business and individuals can go back to the beginning all over again and get the domains that they wish they had registered your business back at the start of it all.

The world in pictures

According to Cisco, by 2018, video will represent 79% of the world’s internet traffic*. Even today, more and more businesses are including recorded video and live online webcams into their daily business operations.

Personal and corporate online broadcasting (webcamming) is more popular now than it has ever been. The Internet allows anyone the opportunity to be a “star” in their own right and enables businesses to differentiate themselves from their competition through the use of live streaming video.

With over half of all IP traffic originating from non-PC devices by 2018*, mobile devices are set to be the default means of internet communication and where mobile devices go so do their webcams. Video traffic on the Internet will be so prolific that it would take an individual over 5 million years to watch all the video data that will cross global IP networks in 1 month.

Undoubtedly, a proportion of this video data will be individuals chatting with friends, looking for love or other late night entertainments, people checking out potential vacation spots or the weather at a favourite skiing resort. However, webcam channels and live video chat add a new dimension to cost effective business operations that has been absent until today.  Using online live video to showcase products or to provide the next level in customer support will set businesses apart from the competition.

So what does it all mean?

The huge change in the Internet naming system coupled with the whole-scale rise in the percentage of internet traffic that is video, means a massive overall change in the way in which the Internet is used as we know it today. For individuals, this will be a smooth change in usage which is almost organic. For businesses, which have established patterns of communications with investors, customers and suppliers it is likely to be a more abrupt and conscious change. Businesses will have to adapt to the opportunities that the new-style web addresses bring as well as changing the nature of its internal and external communications strategies to cope with the demand for video.  Businesses are combining the opportunities that the new-style internet domain names bring with a change to their communications outreach by supporting their go-to-market strategies with a relevant new style keyword domain name such as .WEBCAM  For example www.sheetmetalwork.webcam , www.weldingadvice.webcam or www.highspeedmanufacturing.webcam.

 

Andy Churley CMO at FFM

Andy Churley CMO at Famous Four Media