We are probably going into a depression? All thoughts and opinions are welcome. I just really think there is a very good chance that we will enter into a depression and not so sure it's a good idea to put out more money for inventory. Even it we don't end in a depression, how tight are people going to "tighten their belts" as they say?

With 2 top Economist so far predicting a full-blown depression, I think your right. It is a matter of personal choice. Do you not continue business as usual and wait for the doom and gloom ahead, thus insuring failure? Do you keep a positive outlook and continue to strive and do your best to make things work for you and those who depend on you, thus at least having a chance of success?

I believe in Miracles and man do we need one, but if we all give up and quit doing what we're doing then that is just insuring a depression to me.
Although, I think I know what is going to happen to the economy, this is one time I am hoping I am wrong. Knowing there is a 50/50 chance I am going with Business as usual and just strive a little harder than I've had to in the past. JMO

P.S. What's the worst that can happen. You return the product to the supplier or you have bad credit along with every other American in a depression situation. What have you got to lose?

I know one of the worst things is for the consumer (us) to stop putting money into the economy, yet it seems that our government will just continue taking our hard earned money and bailing out CEO's and companies who deserve to go under. So what will that leave us with when we have invested what capital we have and there won't be anyone with money to buy non-essentials. I just don't know which is why I really would like to hear what you all have to say.

dlrane,
i didn't notice your P.S.
I wouldn't be able to return my products as I have them made for me. And what I would lose is the capital that I have on hand that I might need for food if nobody can or will buy what I have to sell.

skydragon wrote (View Post): › We are probably going into a depression? All thoughts and opinions are welcome. I just really think there is a very good chance that we will enter into a depression and not so sure it's a good idea to put out more money for inventory. Even it we don't end in a depression, how tight are people going to "tighten their belts" as they say?

I am operating business as usual through 2008 and then dropping inventory about 30-40% unless it starts to hurt sales. The trick is to drop it far enough to limit risk but not so far that you loose sales.

I think Jan will be the biggest tell of things to come.

CS

I feel that unless the economy REALLY tanks...online sales will do ok, since alot of times it can be cheaper to buy online! Just keeping an eye on things here, and selling what I have or find at a good bargain that I like, so that if I have to look at it for a while...it wont hurt me!

Thanks cohib. My problem is that I was going to expand my inventory to include other items that I think would sell but the more I think about it, the more I don't know if I should risk the money I had saved for that. I know it has to be a personal choice but like I said, it's nice to have input from you other sellers.

Renagade wrote (View Post): › I feel that unless the economy REALLY tanks...online sales will do ok, since alot of times it can be cheaper to buy online! Just keeping an eye on things here, and selling what I have or find at a good bargain that I like, so that if I have to look at it for a while...it wont hurt me!

Hi Renegade,
Maybe I am a pessimist but I do think the economy is going to really tank. With the people in charge of it, I just don't see it going any other way. Do you think the government will bail our ass** out so we can go on half million dollar "retreats" and then give us even more. Somehow I doubt it so I would be sitting on a fair amount of inventory (money) if nobody can buy it. Like I said, I know there are no black and white answers anyone can give me, just want hear opinions from sellers who may know more than I do and weigh them.

skydragon wrote (View Post): › Thanks cohib. My problem is that I was going to expand my inventory to include other items that I think would sell but the more I think about it, the more I don't know if I should risk the money I had saved for that. I know it has to be a personal choice but like I said, it's nice to have input from you other sellers.

My only reason for putting off adding product lines next year is the expected obama tax increase. Not because I am even close to his claimed $250,000 cut off but because every other expert says it will be more like $40-50,000 and up.

If your initial investment in a new line is fairly low and you can afford a slower return I wouldn't rule it out. There's always money to be made even in hard times.

And I am finally exploring local sales venues just for a fall back/fill in case the economy hits the worst case scenario.

CS

Gold, food, and ammunition are being stockpiled by private citizens in my area. Apparently, skydragon, you aren't alone in predicting that the economy hasn't bottomed out yet.

On the other hand, I remember reading reports of families who sold everything and moved out into the country on the belief that the Y2K glitch would bring about the end of civilization.

Will it be a false alarm this time? Time will tell . . .

Only time will tell is right.

I am being conservative but I am still spending. Actually probably a little more than normal since my DD is moving and I'm kind of helping with things here and there.

We had a lot of major work done around the house this summer. Prices were reasonable! We spent a ton. But if we'd had the same work done a year or 2 ago, it would have cost us at least half again, maybe double as much. People here are pricing themselves within reason now.

So we're doing our part to keep the economy going. I'm buying Christmas gifts and more than usual since I seem to be acquiring 2 more grandkids and a soon to be SIL.

Jo

I think that for sellers who have unique items, second hand items, collectibles and antiques, etc. will do O.K., even though the economy is in the toliet!With Christmas coming buyers are looking for gifts and want to spend less than in the malls, or find that unique item to fit the person, or an item for someone who collects something. These things you can't get at a mall. More and more people shop online, I do since I live 50 milese from the nearest city and it saves, gas, time, etc. to shop on line. I live up in the Sierria NV. Mtns. and most people up here would rather shop on line than drive all the way to the city, which is round trip 100 miles. The only store we have is K-Mart! I know lots of you guys that live in small towns know what I mean, I would rather shop online and pay the UPS, plus you can find the size you need, etc. If you go to a mall it is crowded, they may be sold out of what you need and you have to shop in crowds going store to store to try to find the item,trying to find a parking place,etc. I think more and more folks prefer to shop online now. We will know when Mr. Obama is president he will keep his promise of raising taxes, which we all know he will.Anyone that voted for him, shouldn't complain when they have to pay more taxes on everything. My sister does estate sales and house sales and with the economy so bad, she says she is swamped with business, people are looking for gifts, Christmas oranaments, everything. She says she is the busiest she has ever been. So I think people know you can get great stuff from sellers like us, and spend a lot less than in a mall.
Anyway good luck to all selllers, I would be cautious about buying more inventory, I am more picky now on what I buy but if it is a deal in antique and collectible dolls that I sell, I keep buying. People call me all the time to sell me stuff.
The person above said people are hoarding food, guns, etc because of the YK2? what does that mean? www.doll-appraisals.com

Sky....Keep the inventory you have now and wait it out. The online industry is flooded with items. You have to have a very competitive price and product. Depending on what your selling. I would suggest sell what you have and see what the future holds.

Keep the money you said you have saved. I sell an array of things and business has been slow. Not bad, but slow. Buyers have turned into sellers from the time I started selling online. I have alot of used vintage items, I have stopped my inventory as of this year.

The person above said people are hoarding food, guns, etc because of the YK2? what does that mean?

Y2K - that was when we had all the "doom and gloom" about computers freezing up with the change from 1900s to 2000s and we might not be able to get money out of our bank accounts. That's old news.

BUT, shortly before the recent election I heard several news reports about similar hoarding, especially in regards to guns and ammo. People are afraid about what is going to happen with a new administration and this economy.



Now as far as stocking up on inventory -- it would depend a lot on what stuff you are selling. There has been a lot of good advice in the posts above and it does have to be a personal decision.

For me, because I'm in the "food industry" in an oblique way (garden seeds), my stuff has been selling even now at a time when I usually don't sell much. But I have only invested a lot of TIME, not much money, in new inventory.

So if your stuff is something that people NEED, no mater what happens to the economy, it may be a good time to stock up. Especially if you can get good deals.

Carol