Bibby Line, the owner of Costcutter, is a 206 year old family-owned company and its non-executive chairman Simon Sherrard recently wrote to the FT in response to a column on unforced errors made by entrepreneurs.
"We manage our business for cash and not for profit as we have nowhere to turn if the cash runs out," he wrote.
"We have coined the phrase that you can often have cashless profit but you very rarely have profitless cash."
My friend David Adams challenged me as to how many retailers understand this rule. His view was that it would be close to 100 per cent. I am not sure that he is correct. How do you rate your skills in this respect?
The second thought comes from Bibby's website and its observations on the strengths of Costcutter, which it says delivers the best advice to its retail partners plus a national brand, marketing and store development support.
"Arguably, these together generate the highest profit margins in the sector."
As an independent retailer you need to test this assertion yourself. Hop on to the Costcutter website and find the location of your nearest store and go and have a look.
For more, see www.betterretailing.com.
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