Different Strokes (strategies that we've seen to date)

Disintermediation. Wow! Big word. Something that we've talked about since about 1995. Disintermediation is killing off the middle man in order to keep more of the margin, but if you anger your traditional buyers in a multi step distribution chain, you could be cutting your own throat. A manufacturer we know started selling directly to the public via a website, bypassing the entire supply chain. That way, the get to keep the WD's margin and the retailer's margin. A WD could do the same thing, bypassing the retailers and thereby keeping their margin.

Clearance items. This is the equivalent to cleaning out the garage or attic and putting the stuff on eBay. All of us have stuff that just didn't move. Millions of dollars worth of stuff taking up space in the warehouse (a hefty cost). If we could just move it, we might acquire a stash of cash and more breathing room. Ok, it's a temporary one shot deal, but still worth the effort. We know several companies that are working this angle. I'm sure you've already thought about this, but how do you sell this stuff without incurring a ton of up front costs? Yup, the Internet again. We can talk more about that in future posts. Stay tuned.