Soho business buy from Costco. A business spending $4,000 per month on office supplies is not buying office supplies from Costco. Would you propose risking sending the office manager in their personal car risking an accident to buy 5 cases of paper to save $10.00. What happens when that office manager pulls their back lifting the paper out of the car. A business spending $50K annually on office supplies buys from an office supply dealer.
wow stapler....you must work in an easy market...in my market customers can get copy paper for under $30 delivered (free)and their pricing for toner is well below any matrix pricing offered by OMX, OD or SPLS....which means that if the customer wants a good price on toner the buyer simply points out to the supply rep that they can get better price on core commodities at Costco....the office supply rep is forced to add the item(s) to the customer core price list....Leverage.....no trip to costco just smart busines....that was easy!
and - as a business owner- and knowing many others like myself- i find it comical that people even make such strange statements regarding competition from the others- but look ill boil it down for you- if markets do well in the second half - spls will do well- if unemployment drops and the small biz environment expands- spls will do really well- what you have to do is be REALISTIC- if you are looking for a fairly solid 20% annualized return on SPLS - or about 17.50 stock by the fourth quarter- i feel safe in saying that if market conditions continue to improve we will be there- on the outside- if all the right conditions line up- especially consolidation you may see a 40% annualized return(2cnd half 20% gain) - it could happen as well- but this is not a 'glamour stock' it never was - so decide what you want know that the downside - under terrible market conditions is about half of that- or 14$ stock. My take is that the floor is around 14- under terrible conditions- so the upside is twice the dowside- and i like those odds- like the company- but i like the HONESTY- integrity- and the fact that its a us company- simple as that- and ill put my money into the us before i give to a bunch of depraved commies ANY day my friend- because it may not mean something to you but it does to me- thats it