Have you ever been to one of those “wholesale clubs” and purchased a monster-sized jar of ketchup? Or perhaps it was peanut butter or fruit cocktail. Whatever is was, you bought such a big jar because it seemed like such a terrific value. But then a few months passed and you just didn’t use as much ketchup as you thought you would. Maybe the kids went to summer camp and hot dog consumption was down in your household and the ketchup sat just a little too long to be appetizing anymore. You eventually threw it out. It did not cost too much, though. So who cares?
We have all done this at one time or another – purchased something that looked like such a great deal only to discover that we really did not need it after all. The problem is when the jar of ketchup is $10,000 worth of bargain basement gold jewelry or $15,000 worth of an untried line. It might seem like a really good deal because you get 12-month terms or 10% discount with early pay or half of it on memo until you have sold the other half - - the list goes on. But you need to stop and take a deep breath before buying these bargains and ask a few questions. Do we really need this? Will we be able to sell it? Will it be profitable? Can we afford it – now?
Think about that monster-sized jar of ketchup before you sign the order. Nothing is a good deal if you end up throwing it away.