Retailer Incentive
Inergy Acquires Liberty Propane and Agrees to Acquire MGS Corporation
KANSAS CITY, Mo.----Inergy, L.P. announced today that its wholly-owned subsidiary, Inergy Propane, LLC has purchased all of the partnership interests in Liberty Propane, L.P. for approximately $223 million, including an estimated assumed tax liability.
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Circuit City to Lay Off Thousands of 'Overpaid' Workers?

It layed off 3,400 store workers in March (8.5 % of their total workl force) and hired lower-paid employees to replace them, They plan to cut about 130 corporate jobs. Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy, said the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, with obviusly less experience and incentive.

I admit, I work for corporate as a graphic designer and I'm a little "worried" to say the least. What do you all think of this strategy??

Mind you, a week after the layoffs all the executives went to Hawaii for a "meeting" - another way to cut costs I assume? Not to mention the $750,000+ salary and $700,000 in bonuses & stock options the CEO and other top execs receive ...

I recommend that you research Home Depot here at this link

http://articles.moneycentral.msn.com/Investing/Extra/HomeDepotShaftingShoppers.aspx

Robert Nardelli the terrible ex CEO of home depot performed the very same strategy. I think reading the "we let you down" from the new CEO indicating that getting rid of employees to satisfy the bottom line was terrible business. Not that I ever shopped at Circuit city before I obviously won't now. This is just another example of pure CEO greed and pandering to stock holders. They can run their business this way if they choose but most businesses in sales or service realize that you need people to perform this function. They will cut some more employees which is their right but it creates bad blood among consumers. I wouldn't be holding their stock for long because karma is like a boomerang.

Drop shipping is a supply chain management technique. The goods are not kept in stock by the retailer. However, the retailer transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. Basically, in the drop shipping arrangement, the middleman between the manufacturer and the customer is the retailer. The profit of the middleman (retailer) in the transaction guided by drop shipping agreement is the difference between the wholesale and retail price of the products sold.

 

The arrangement of drop shipping is particularly beneficial to smaller retail shops, internet-only storefronts and shops using catalogs for sales. This is so because customers of these outlets don't mind a slight delay between ordering and actual delivery of the product. The following is an example of how the arrangement works: A representative product may be displayed on the store's shelves or pictured in its catalog. However, the actual product purchased may not be present in the store. It can be in the factory's warehouse situated hundred miles away. An excellent example of the same is offered by the online auction sites like eBay.

 

As any other arrangement, drop shipping comes with benefits and costs. The benefits are no upfront inventory to purchase, a positive cash flow cycle, reduction in total inventory management and shipping costs. The costs of this supply chain management technique are the back ordering possibilities. Back ordering occurs when a seller places a shipment request with a wholesaler, but the product is sold out. The latest emerging trend in the drop ship business is private label drop shipping. The manufacturer produces a customized item for a retailer and drop ships it. The range of private label drop shipped items varies from key chains and t-shirts with custom logos to personalized pictures.

Sturat enjoys writing and sharing articles on topics like http://www.dropshipping.org.uk"> dropshipping and dropshipping directory.

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