"Your suppliers can't necessarily drop ship to your customers, because their items will need to be combined with others - if you have your suppliers drop ship to you, your gift boxes will take too long to come out." - Jefflinwood
That is exactly the issue simplified! Thank for such a good explanation.
You are absolutely right on the last point but we are looking to build a model were our customization is from the item picking part not the warehousing part. Be a tech play more than a warehousing play. Now we currently ship to us the items, repackaged and send back which is a very non-scalable way to grow not to say non-profitable too.
YEs those warehouses are called 3PL's (Third party logistic provider) the issue with those is that local products and niche items aren't using those since they don't have the volume to be in them. The idea of having one warehouse is good but most of the large companies (Does using 3PL's) already have theirs signed. Now I could partner up with them but it won't allow me to gain diversity in my items.
I know I sound negative about it but challenge me on that cause it would be the easiest scenario to go with if I crack that model correctly.
Honestly if you are talking about considerable amount of money you should seek out to first and accountant (He will save you more money that he will charge) he will figure those things out cause even if you research on that a lot, my personal feeling is that you might do mistake that will catch up to you in the future.
For the were to invest it, well no one can answer that for you it depends on your attitude towards risk and where you are in your life. If you 25 no family and looking to risk more to (hopefully) earn more then invest back in yourself and start your own but if you have a family and looking to work in o a more steady environment, wait a bit because with over 100K in your bank account, you will get calls from portfolio managers! : ) Those guys will know who to invest your $$ better and at a risk level your will be comfortable with.
An personal opinion, fix everything with an accountant an then relaxe a take the time to answer those questions they will affect a lot how you will live your futur!
Bubbles create large wealth when on the upside but wealth creation at a rapid extend creates a high volatility in markets until a point where people can no longer follow their current way of life. By then the bottom of the pyramid falls and the economy collapse. Your clients are to one bringing the business and is wealth is not properly give away they cannot afford them anymore and your the one suffering and the end. Read Henry Ford's theory.
That is exactly the issue simplified! Thank for such a good explanation.
You are absolutely right on the last point but we are looking to build a model were our customization is from the item picking part not the warehousing part. Be a tech play more than a warehousing play. Now we currently ship to us the items, repackaged and send back which is a very non-scalable way to grow not to say non-profitable too.