We are all aware of the F around and find out graph and I heard a story today that fits this perfectly. Seeing someone who you know who is a multi millionaire and losing it all within 5 years.
In business or life in general there are a couple of common sense rules you need to abide by. Never burn your bridges because you never know when you might need them even if you think you are the smartest a hole on the planet. Treat people how you would expect others to treat you especially if you know these people personally. Never forget your roots and the people that helped you get to where you are.
The story is based on a person I know personally as he was a business partner in the family business when it started over 30 years ago. He was paid out after a mutual agreement in 2008 and he moved on still staying in the industry. He obviously held some sort of grudge because what he went on to do was not pleasant.
The major clients the family business had turned on them and replaced them with this guys business. He was supplying similar products to these clients from around 2018/2019 and it was not that his products were better or cheaper but what he offered on the side. We know certain buyers that were given trips to the football World Cup as a thank you for their loyalty and support. We know who gave those trips out and why which is a bribe and not allowed by these types of companies. You cannot even buy them a cup of coffee yet there are some flying around the world on all expense trips.
His actions put the family business into business rescue before they pivoted to online and have not look back since. The online is now bigger than the customers they lost and have been eating into their market share. This person and their partner cannot use the same factories overseas because those are protected and this is all about relationships.
Give Someone Enough Rope And They Will Hang Themselves
I had heard rumors that thigs were not going so well with many recalls happening especially around the trampoline product with the springs snapping. This causes serious injuries and can be compared to a bullet being fired out of a gun when they snap. I have experienced this once and it is all down to the spring and what kind of steel is used and the tensile. We had one that shot through a kitchen window and embedded in the kitchen tiles when the team was assembling it and we have to remember these are under high pressure.
The rumors are true and the recalls are so bad there is an estimated $2m million worth of stock involved. We know exactly which ones are theirs due to the colors and have been refusing them for the last 6 months when they are dropped off for repair. The law suits which there are apparently several is what is going to bankrupt these suppliers due to injuries from springs that have snapped. No one else can solve this quickly except our business as we have over 1 million springs in stock and these are the good quality springs.
To cut a long story short the buyers will protect this other supplier for all their worth because of the back handers they have been receiving. I am sure at some point they will come back crawling with their tails between their legs begging for supply and that is not going to happen. If the buyers were replaced and a new team was in place then I suppose that would be a different story, but until then they are screwed.
The family business will continue to dominate the market share and I see this as a time to grow it even more. The supplier who we know will be bankrupt having lost everything which is all down to his actions and his own fault. Personally I would not supply them at all because their actions were underhanded and they need to learn the hard way. The company involved is a household name around the world and as crooked as they come.
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