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Tough decisions!

posted 23 Jan 2017, 08:40 by RAMAMURTHY SWETHA   [ updated 23 Jan 2017, 08:41 ]
Let us start off with some good news!
The first good news is that our website is up and running. With a bit of help from our coder friend Pratyum, we got our website to work. We have started to publicise on Whatsapp, FaceBook and Instagram about our website to divert traffic there and get people more interested in our product. 
The second good news is that, we have already run out of stock!!! We have to place the order for the second batch of wood. But here comes the problem as well. And for the first time, we had to make tough decisions like real entrepreneurs do. We got our first batch of wood from Maxconn enterprises at $450. The wood was of good quality and also gave good results. Recently, when we tried to look for wood workers to scrape of the images from the sample woods so that we could reuse them, we found another supplier who was ready to supply the wood at almost half the price. Unfortunately, the timing of this was bad. The new supplier was closing his shop for Chinese New Year until 6th of February. However, he assured us that if we placed the order on the 6th of February, he would deliver the wood by 8th February without fail. But tough luck!, we have two very important events coming up on the 9th and 10th of February: U-Flea and MAAD. And we could not afford to not have wood while going for such large scale events. And we couldn't approach any other supplier at this desperate time because of Chinese New Year. So, we were left with two options:
(i) Order wood from Maxconn enterprises at $450 or
(ii) Order wood from the new supplier at $230
But going for the second option would surely be a gamble because:
(i) Though he assures to provide the same quality wood at a lower price, we have not seen any sample before and have never tried our printing technique on it
(ii) If there are any delays in delivering the wood order, we may not have any wood for U-Flea, MAAD and Valentines' Day which we expect to be our major seller
So, though we were tempted to buy the raw materials at a cheaper price, we had to go with our first supplier as we could not afford to take the risk of running out of wood during our major selling season. Maxconn promised to deliver the wood before Chinese New Year vacations (25th January) thereby giving us time to prepare for our major events. However, he gave us an ultimatum that if we didn't confirm the order tonight, then he wouldn't be able to process it before CNY. Also, he was ready to forego the extra cost of $150 that had to be levied for calling the workers back during their vacation just to process our last minute order, only for the sake of the relationship that we had developed during the last transaction. And only for that reason we did not want to bargain with him and spoil our relationship with Maxconn relationship before finding any better, reliable supplier. 
So there we were! Made the first tough decision of our business. We know that this could work two ways: We may either be a sell out and need more wood, thereby covering up for the expensive wood that we are buying or we may not sell a lot and make further loss. However, we believe that if we could sell out one complete batch of wood only through friends, family and word of mouth, we can surely do a better job now that our social media marketing and website are also functional. We also believe so because, some of our customers loved our products so much that, they had recommended us to their friends who are thinking of giving us orders for redecorating their houses. 
Hopefully things work out in our favour!
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