Business Tips Archives

Part 4: Why Businesses Fail

Financial experts seem to be teetering on the verge of labeling the country’s current economic situation a recession. It’s a label the government seems loathe to use, believing it will wreak further havoc on the stock market and send the economy spiraling down even further. No matter what you call it, things are difficult and it looks like they’re going to stay that way for a while. The economy is slow, credit is tight, fuel is high and bankruptcies are up. For many companies, the combination has delivered a knockout punch and they’re down for the count.

Last week we started a series on Why Businesses Fail (see our July 14-18 posts). We figure it’s better to learn from the mistakes of others than repeat them yourselves. This week we continue our list of the most likely reasons businesses fail:

Inappropriate inventory. You can’t sell what customers don’t want. Too much or the wrong inventory causes cash flow problems, wastes sales time and drains profits. By constantly tracking individual inventory items, you can make adjustments and effectively manage product flow on a weekly and monthly basis. Don’t make the mistake of relying strictly on accounting summaries to track inventory. Accounting tracks inventory by dollars, lumping moving and non-moving inventory into an average. To adequately control inventory, you need to track the actual physical items.
Excessive capital investments. Americans seem to equate success with things. Bigger cars, bigger houses, the latest gadgetry. In business there can be a tendency to buy newer, bigger, more expensive tools and equipment as a mark of success. But success in business is really based on the quality of the product or service you produce. That’s what drives sales and repeat business. Equipment purchases should relate to your ability to improve or maintain the quality of your product. Certainly, you need to update equipment as technology changes to be competitive. And often the expense of new technology can be recouped in short order by savings in energy, floor space or worker health and safety. But capital equipment purchases should always be evaluated for their ability to enhance the production of a quality product.

If you’re looking for a cost-saving solution for your capital equipment investment, turn to the material handling experts at DJ Products. At DJ Products we manufacture ergonomically designed electric carts and motorized cart pushers for business, industry and service providers like hospitals. Our products are smaller and more maneuverable than traditional powered equipment like fork trucks, walkies and riding tugs, yet are capable of moving the same sized loads with ease. A smart capital investment, our products are less costly than purchasing traditional powered equipment. Because our carts, tugs and equipment movers are ergonomically designed, you’ll also realize an attractive savings in worker health and safety costs, including medical bills, insurance payments, workers’ compensation and lost man-hours. Visit the DJ Products website to check out our full line of ergonomically designed electric and motorized carts.

To be continued

Property Managers: Recycling – Does It Still Pay?

When given an opportunity to reduce their carbon footprint, reduce pollution, and help the environment, people are eager to participate. For individuals, the practice does not have to be the most cost-effective or convenient. However, with innovation in biodegradable packaging and goods, the amount of recycling is down from 35 percent to 33 percent according to the EPA, and many property managers are reevaluating their policies for Waste Removal in Condo’s and Hi-rise apartment complexes.

Recycling is not always profitable

Waste Management’s CEO, David Steiner, told CNBC’s Squawk Box that low recycling commodity prices have put their recycling division into a loss. He used the example of cardboard (the most recycled commodity): WM previously sold the cardboard for $100 per ton. They give their customers 75 percent; WM keeps 25 percent. It cost WM $20 per ton for processing, WM makes about $5 profit from each ton of recycled cardboard. When the prices drop, WM is still obligated to pay 75 percent of the sales price to their customers. The lower prices left WM earning just $12.50 per ton for themselves, yet still having to pay the $20 per ton for processing. This puts them at a loss for their recycling efforts.

Waste Removal in Condo’s and Hi-rise apartment complexes

Property managers can reduce their waste removal cost by using efficient battery-powered dumpster movers and bin pullers. This reduces labor cost and the risks of worker injuries from overexertion, strains, or slipping. The 36-volt WasteCaddy make it easy for one person to maneuver up to 10,000 lbs. Call 800.686.2651 to discuss your waste removal needs with our knowledgeable Sales Engineers.

Weichert Launches New Property Management Company

Property Management

Known for providing top quality customer service to home buyers and sellers, the Weichert Family of Companies announced recently that they will consolidate their property management businesses into one entity called Aureus Property Management.

The gold standard

Headquartered in Morris Plains, New Jersey where it was founded in 1969, Weichert Realtors has grown to be a leader in residential and commercial real estate transactions by going beyond “full service.” They make it clear with the company name that they want to be the gold standard for residential and commercial property management. Aureus was the name of the gold coins that were the main monetary unit of ancient Rome.

Aureus offers a wide range of property management services for property owners and renters. The company helps relocating employees and long term tenants with their housing needs. Services for property owners include marketing, screening tenants, rent collection and maintenance services.

Property manager equipment

For the best waste container and dumpster movers, check out the DJ Products line of efficient, battery powered pullers and waste caddy haulers. Regardless of your property manager equipment needs, we have the electric or motorized cart tug solutions to help your company operate efficiently and reduce the risk of injury to your employees.

According to Greater Media Newspapers, Mike Williams will serve as president of Aureus. Williams was previously president of Penn Property Management and has 15 years of experience in the industry.

At DJ Products, we also strive for gold standard customer service. For information about waste bin movers and other motorized systems, call one of our sales engineers and follow our blog for property manager tips.

Bigger isn’t always Better

Staying operational in rough economic waters sometimes means having to make some big changes – one of those changes that some distribution centers are making is to open more locations. Opening more locations doesn’t really sound as though it would be a good way to cut costs and increase the bottom line; but if those new locations are smaller and better equipped to serve the customer – it can certainly be a way to turn more of a profit.

Many companies are looking to eliminate extremely large facilities that carry high overheads in terms of rent and utilities in favor if smaller, lower cost buildings that are able to deliver service at faster speeds. One large centralized location that is capable of carrying plenty of inventory does have some advantages, but multiple locations that are strategically placed can have many more benefits when it comes to provide quick and accurate service to customers.

It can be quite a bit easier to keep track of product in a smaller and well organized building, everything needs to be processed and put away upon arrival because your employees won’t have the extra space for product to sit around on pallets. With your entire inventory put exactly where it needs to be up receipt, there won’t be any room for error – inventories will be easier to control and orders won’t be lost due to misplaced product.

Bigger isn’t always better in terms of equipment either and when distribution centers shrink down in size to become faster and more effective, they often need their material handling equipment to do the exact same thing. In a small and fast pace environment, you can’t afford to have over-sized, unreliable and outdated equipment – you need carts and lifts like those offered by DJ Products; equipment that is small, easy to use and that will last an entire shift (or more) on a single charge with no fear of failure.

Your employees will be moving at lightning speeds in order to process customer orders; they’ll need safe, effective and reliable equipment to help them perform their job properly – equipment like the carts and lifts offered by DJ Products.

Diversification and the Willingness to Grow

Stocking distributors and manufacturer’s representatives are finding themselves in a position where they have to play the roll of the chameleon, constantly changing to meet their customer’s needs in the ever changing construction environment.

When you are in a field where the products are constantly evolving to meet the end users unique needs it’s difficult enough to try and keep up with the trends, but when the ravaged economy is wreaking havoc with your and your competitors’ businesses you need to truly be the most versatile business you can be in order to remain successful.

Your closet competition may be forced to close its doors, which could open up an area of the market that you were previously unable to service – but in order to attack and hold onto that business you may need to add new product without losing a step in terms of serving your customer.

This type of rapid fire adaptability requires you to have the most reliable and easiest to use equipment in order to be able to receive and fill orders at the rate necessary to meet existing and new customer needs. You can’t have your employees fumbling with outdated machinery that is prone to failure, or with manually moving thousands of pounds of product due to the fact that there is no fuel in your lift or charge left in its battery.

DJ Products offers battery operated lifts and carts that are designed to meet the demands of the fast paced atmosphere of material handling. These lifts and carts are among the safest, most reliable and most versatile available – each ergonomically designed to not only get the job done, but to keep your employees safe while they are doing it.

Whether you are feeling pressure from an influx of new product and new customers or just trying better your business status enough to not become a statistic, the right equipment for the job is necessary to exceed your previous level of productivity.

How To Save Your Business Money

Today’s business climate of increased competition and economic uncertainty makes fiscal responsibility more important than ever. Labor costs are usually the largest part of a company’s budget, with workers compensation claims falling under that umbrella. Many people may disregard those costs, assuming they’re covered by insurance, but disability claims include significant hidden costs that impact your bottom line.

Insurance companies resolve claims by footing the bill for medical costs and wage replacement. However, a study by the Stanford University Department of Civil Engineering found that indirect costs of workers compensation claims often exceed the direct costs. These hidden expenses can include:

Hiring and training replacement labor

Overtime costs associated with reduced efficiency due to the loss of a skilled worker

Administrative time on the part of employees involved in claim processing

Clean-up and repair of any damage to equipment or facilities

Some claims may also result in OSHA fines, legal fees and other liability costs.

Incorporating top-of-the-line safety measures is the most effective way to prevent workplace injuries. Material handling activities generate a major number of injuries due to the physical effort involved, making this a vital area to implement better procedures.

Our comprehensive line of electric tugs, tows and pushers is designed with workplace safety in mind. They’re powerful enough to allow a single person to easily move up to 50,000 pounds. In addition, they’re equipped with ergonomic features like variable speed twist grips to prevent repetitive stress injuries.

Our friendly and knowledgeable Sales Engineers are ready to assist you in finding the perfect solution for your particular application. Call 800.686.2651 to find out how you can become a member of Team Cart Caddy.

Hazards in the Workplace

Many things located in your workplace; things that you use every single day without a second though, things as common as pallets, ladders, hand trucks can all prove to be dangerous if not used properly. Many of the pieces of equipment that you use on a regular basis, the things that you come in contact with so often that you take their necessity for granted, can pose a serious health risk to you and others if they aren’t in good condition or if they aren’t properly used.

Regular inspections of all equipment should be made to ensure that everything is in good working condition, regular maintenance should be performed on any equipment that contains moving parts and you should ensure that all of your employees are educated on the proper use of the equipment.

The equipment that you use everyday needs to be: properly used by your employees, in good working condition and capable of handling the work that you are using it for. Many workplace injuries can be avoided simply by the use of the right equipment for the task at hand. The electric carts and lifts offered by DJ Products are easy to operate – your employees can be trained quickly to operate these lifts properly, safely and efficiently. They are quiet – the rest of your employees won’t be distracted by excessive noise while DJ Product’s equipment is operating. They are highly efficient and have long battery life – your employees won’t be stuck with an unfinished load of material in the middle of your warehouse due to the fact that their cart died. All of these attributes will make your warehouse more efficient and much safer for all of your employees.

Safety should be a prime concern when you work in material handling – and safety starts with the right equipment for the job and properly trained employees. You can make your operation as safe as possible and dramatically increase your company’s efficiency by using the right equipment for the job.

Downsizing? Can Your Equipment Handle the Move?

Unfortunately many material handling companies and distribution centers are still having trouble making ends meet and this has led to a trend of companies moving into smaller builds to cut expenses. If your company has a lease coming up for renewal and you are considering the possibility of cutting overhead by moving into a smaller building, ask yourself this –is your equipment reliable enough to conquer the work involved in a move?

If you have issues with outdated material handling equipment that gives you fits because of regular maintenance issues, odds are that your move will be a disaster. Consider the fact that moving your entire operation will be a labor intensive affair unlike any other. Moving isn’t just high volume – it’s all volume, you need to get everything: racks, pallets, desks and every last piece of product moved as quickly as possible to the new operation to avoid missed sales and risk being labeled unreliable. Make no mistake about it – moving is not a job to perform with unreliable equipment.

That’s not all you have to consider either – is there adequate room in your new facility to merit the big, bulky equipment that you are currently running? If there isn’t than upgrading to smaller, safer and more efficient powered carts like those offered by DJ Products is a very simple decision – just be sure to implement it prior to moving.

You won’t be able to ship or receive product during your move, so it’s absolutely integral to your future success to get the move completed as quickly and efficiently as possible so you can open for business again. You don’t need any hitches thrown into the process by having a piece of equipment fail at the wrong time. Upgrading to the best and most reliable material handling equipment prior to the move will ensure that you get into your new facility with as few headaches as possible and that you can resume regular businesses soon as possible upon getting settled in your new building.

Contractor Versus Employee Do You Know the Difference?

One of the most important warehouse management tips for any business is knowing and understanding the difference between an employee and a contractor. Misclassification for businesses can result in larger tax bills or penalties for not paying employment taxes or not filing the correct tax forms. Conversely, workers will avoid higher tax bills and lost benefits if they file tax papers using the proper status designation.

Know the Difference

The basics between an employee and a contractor are:

An employee is instructed on how to do a job correctly and is controlled in the means to do so. A contractor is specifically told what needs to be done, but they do it on their own volition.

An employee is trained to do a job correctly, while a contractor is given the freedom to get a job done the way they see fit.

An employee is paid a specific wage no matter what their duties are. A contractor gives the business a specific price or an estimate, that is agreed upon by both parties, before any job is done.

What it All Means

Essentially, an employee is hired-on by the business and conforms to their company creed, goes through any training provided, and they are then expected to perform a work function using the guidelines set forth by the company.

A contractor gets hired-on at a negotiated wage for a specific job, that they will complete using their own experience and their own guidelines, as long as it conforms to safety standards and regulations.

Stay informed with more warehouse management tips, by checking out our blog at DJ Products, Inc.

Always be Prepared

The Occupational Safety and Health Administration, also known simply as OSHA, is responsible for setting and enforcing the standards of safety in the workplace. The main goal of OSHA is to reduce on the job injuries and fatalities by assuring that workers are performing their jobs in the safest environments possible. Since it’s inception at the end of 1970, OSHA has dramatically reduced the incidents of accidents in the workplace and they continue to inspect facilities and enforce their policies in an effort to make working people even safer.

Between the federal and state run divisions of OSHA, more than 100,000 facilities are inspected each year and those not meeting the standards could receive heavy fines depending upon their infractions. The number one violation cited by OSHA has to do with forklift operation. This should serve as a warning to all warehouse and distribution environments that if they are operating outdated and unreliable equipment or if they haven’t properly trained their employees on correct usage procedures of equipment that they could suffer citations and heavy fines from OSHA.

There is much more at stake though than a fine, operating your facility with under trained employees or old and unreliable equipment could make your facility run poorly, inefficiently and it can put the health of your employees in jeopardy. In order to have the safest facility possible you need to be running equipment that was designed for the tasks that your employees perform and you need to properly train your workers to operate that equipment.

Electric lifts and carts from DJ Products are designed with safety and performance in mind – they are easy to operate, ergonomically designed and can last for an entire shift on a single charge. Properly using the right equipment is the first step to a safer, more effective and more efficient workplace – and it will eliminate the most cited infraction of the standards set by OSHA and keep you one step closer to compliance.

Tag: Business Tips