Michael Snow of TrailersPlus has over 25 years’ experience and the business has serviced more than 400,000 customers. With 77 locations throughout the United States, TrailersPlus is the largest independent trailer dealership nationwide. In the following article, Michael Snow discusses how businesses like TrailersPlus are still growing in today’s inflated economy, and amid supply chain issues.
At first glance, the economy doesn’t look bright for consumers and small businesses. Amid rapidly rising inflation, staffing issues, and constant bottlenecks in the supply chain, many are wondering how businesses are able to sustain their growth despite complications at every turn explains Michael Snow of TrailersPlus.
By focusing on high-turnover products, increasing wages, and reaching out to a variety of suppliers, businesses have been able to weather the ongoing storm. Although it’s not been easy, some business owners have reported their sales returning to roughly 75-99% of their pre-pandemic level. Michael Snow of TrailersPlus explores how they’re managing to stay afloat and discuss where the economy will go in the coming months.
Reassessing Product Lines and Reducing Unnecessary Stock Has Helped to Save Money
After two years of supply chain issues, businesses have had to assess their product lines and cut back on unnecessary stock. This was a two-fold move that saved businesses money in the short term by reducing inventory costs and in the long term by ensuring that they only had products that were selling well says Michael Snow of TrailersPlus.
In some cases, this also meant reducing the number of SKUs (stock keeping units) that a business carried. By reducing the number of SKUs, businesses were able to focus on streamlining their production process and making sure that they could fulfill orders efficiently. This also helped to reduce the number of potential bottlenecks in the supply chain explains Michael Snow of TrailersPlus.
Many businesses have also been forced to increase prices in order to keep up with the rising cost of goods. In some cases, this has been a difficult decision to make, but ultimately it has been necessary in order to maintain profitability.
Focusing on High-Turnover Products Has Helped Businesses to Stay Profitable
Michael Snow of TrailersPlus says that another way that businesses have been able to stay afloat is by focusing on high-turnover products. This means products that are selling well and that customers are regularly reordering. By focusing on high-turnover products, businesses have been able to keep their production lines running smoothly and their employees busy.
This has been especially helpful for businesses that manufacture their own products, as it has allowed them to keep their factories running at full capacity. In addition, Michael Snow of TrailersPlus says that by focusing on high-turnover products, businesses have been able to reduce the amount of time that their products spend in the supply chain.
This is because high-turnover products are typically shipped directly from the factory to the customer, without spending time in warehouses or distribution centers explains Michael Snow of TrailersPlus.
Increasing Wages Has Helped Businesses to Attract and Retain Employees
Amid rising inflation and supply chain issues, there have also been major staff shortages as disgruntled employees are jumping ship in favor of higher wages. This has pushed many employers to offer higher wages to keep up with rapidly rising inflation explains Michael Snow of TrailersPlus.
While it may be more costly, it’s a necessary step to attracting and retaining employees. In some cases, though, businesses have been able to offset the increased cost of labor by automating certain tasks. However, in most instances, businesses have had to bite the bullet and raise wages to keep their employees happy.
Reaching Out to a Variety of Suppliers Has Helped Businesses Find the Products They Need
Finally, businesses have been able to stay afloat by reaching out to a variety of suppliers. Between pandemic lockdowns, disruptions in traditional logistic chains, and sanctions against Russian gas suppliers, the world is facing a perfect storm of supply chain issues. Understandably, companies have had to find new suppliers for the products they need to stay in business says Michael Snow of TrailersPlus.
This has been a time-consuming and difficult process, but it has been necessary in order to keep their businesses running. It’s also helped suppliers stay in business by following many of the trends discussed above. By focusing on products that sell well, they’ve been able to specialize and offer their services across the nation.
Looking Ahead at the Economy
Michael Snow of TrailersPlus says that the economy is in a state of flux, and it is difficult to predict where it will go in the coming months. However, by taking the steps that we have discussed, businesses have been able to weather the storm so far.
It is likely that the economy will continue to be volatile in the coming months but, as long as businesses focus on high-turnover products, increase wages to keep up with inflation and reach out to a variety of suppliers, they should be able to survive until higher interest rates force costs back down according to Michael Snow of TrailersPlus.
The Bottom Line
In the current economy, no one walks away without a few sacrifices. Although inflation and supply chain issues have forced many businesses to rethink their approaches, they’ve been quick to adjust and are now working to minimize their losses. This helped to spur continued growth, which could pull the economy through these trying times.
