March 3, 2014

Commercial Warehouses

I’m sure you have seen more than a fair share of companies throughout your life that have very nice office space, proactive staff, wonderful products but… inadequate warehouses. This is a problem for a lot of companies that start small and then just start to grow and grow, especially those with tangible inventory. They ultimately must face the inevitable: they have to build commercial warehouses. A good friend of mine who sold janitorial supplies did it and he now confesses the investment was very small compared to how much stock he could actually handle now, how he did not miss on any orders because of lack of inventory and most importantly, how his company did not stop growing.

He now has a couple more, that’s how much building commercial warehouses along with a thriving
demand helped his business grow exponentially. He is very business savvy so he knows that whenever his supply has no demand, he simply does not import the goods thereby emptying up some space which he then proceeds to rent to the highest bidder. People are very afraid of the risk associated with acquiring such a large asset but I would advise them to do it. There is a golden rule in economics (and casinos, I think) which is: the more you risk, the more you could win. Unlike casinos, you’re not throwing your money into a rolling dice but actually building the backbone of your company’s future. That could be an overstatement but my friend says it’s not. He does not downplay the impact that building his commercial warehouse had on his business.


My line of business is a little different, I serve a very different niche market which is related to software and other technological solutions so I don’t think a commercial warehouse is as relevant for me as perhaps servers or more computers or hiring new engineers could be. Unless you are in my kind of business, you could most likely benefit from building one and if you are missing out on delivering purchases because of the ‘’out of stock’’ answer, your customers will notice and most likely find the product somewhere else. That’s the problem, missing out. Don’t fall there.