One Dragon's Den Investment Goes Into Administration

Snooze

Really2 wrote: »

Good job you have never been in IT.;) :eek:

A ridiculous comparison. With IT you don't have to worry about the price of diesel changing on a daily basis nor do you have to worry about the ever-increasing red tape over EU driver rules & regs and all the grief and hassle that comes with having an O-licence.

Rob

Chris2685

It's as thought the 2 eco's (economy and ecology) are opposing forces. More of one, you get less of the other.

Although I guess that doesn't always ring true. Use less energy and you are being ecological AND economical

spuds_2

Unfortunate timing to be running a business like haulage. When the economy starts failing things like using a green haulage contractor will be considered an indulgent luxury. See the Starbucks thread.

Really2

Snooze wrote: »

A ridiculous comparison. With IT you don't have to worry about the price of diesel changing on a daily basis nor do you have to worry about the ever-increasing red tape over EU driver rules & regs and all the grief and hassle that comes with having an O-licence.

Rob

Why IT is very low margin.

The cost of goods changes on a a daily basis due to a whole manor of things exchange rates, delivery costs etc. etc. etc.
Recycling cost etc etc etc.

Any low margin business has to react swiftly or forsee prices rises.

To make out couriers/freight are different to any other low margin industry is silly, yes your costs change on a daily basis, so does everyone elses.

lesley1960

Snooze wrote: »

Having been involved in haulage for much of my working life I still can't get over who stupid they both were to invest in the company in the first place. Anyone that's got any knowledge of the haulage industry will know that's it probably one of the most cut throat industry's out there with very very small margins (unless you're in a specialised sector like abnormal loads).

Companies are aren't interested in what the trucks run on, they just want their !!!!!! moving from A to B as fast as possible and at the lowest possible cost and this is why investment was a bad idea because the company model was doomed to fail right from the start.

Rob

I saw this dragons den episode not very long ago , and being in the haulage business I thought it was an odd business to invest in at the time I looked into the company and thought they didnt look very healthy .

The thing with haulage is there is always someone out there who will do the job for next to nothing and to survive you need to have a wide range of services .

Snooze

Really2 wrote: »

Why IT is very low margin.

The cost of goods changes on a a daily basis due to a whole manor of things exchange rates, delivery costs etc. etc. etc.
Recycling cost etc etc etc.

Any low margin business has to react swiftly or forsee prices rises.

To make out couriers/freight are different to any other low margin industry is silly, yes your costs change on a daily basis, so does everyone elses.

Listen dear, you believe what you want okay? If you think that buying and selling a few PCs is as "complicated" (for the want of a better word) as running a haulage company profitably then you clearly don't have a clue what you're talking about. Try running a haulage company profitably and then come back to me with the same "they are no different" reply as you did above. Until then, please don't reply.

Rob

Snooze

lesley1960 wrote: »

I saw this dragons den episode not very long ago , and being in the haulage business I thought it was an odd business to invest in at the time I looked into the company and thought they didnt look very healthy .

The thing with haulage is there is always someone out there who will do the job for next to nothing and to survive you need to have a wide range of services .

Correct. Warehousing is the money-maker in haulage these days, not the actual moving of it.

Rob

Really2

Snooze wrote: »

Listen dear, you believe what you want okay? If you think that buying and selling a few PCs is as "complicated" (for the want of a better word) as running a haulage company profitably then you clearly don't have a clue what you're talking about. Try running a haulage company profitably and then come back to me with the same "they are no different" reply as you did above. Until then, please don't reply.

Rob

Rob stop blowing smoke up your own @ss (when you are turning over £3M then we will talk)
I deal with couriers every day. Every industry is cut throat and someone is always willing to undercut you.
You obviously have never run a company that is why you do not know that competition is very high in all low margin industrys (that is why the margin is low)
The problem for that company would have been bio fuels being vastly expensive compared to fosil fuels in the last 9 months or so making them even less of an atractive proposition to companies.
All companies need to tick the green boxes, it is not such an issue when business is good.
But when trade goes down ticking the boxes are the last things you do.

Thrugelmir

lesley1960 wrote: »

I saw this dragons den episode not very long ago , and being in the haulage business I thought it was an odd business to invest in at the time I looked into the company and thought they didnt look very healthy .

The thing with haulage is there is always someone out there who will do the job for next to nothing and to survive you need to have a wide range of services .

Remember these dragons have lots of investments. Often or not there is more to which companies that they invest in.So they probably used this Company themselves to provide a service within their business empires.

Really2

Thrugelmir wrote: »

Remember these dragons have lots of investments. Often or not there is more to which companies that they invest in.So they probably used this Company themselves to provide a service within their business empires.

They would have and also helped their green credentials when touting for any business with any of their companies.
I think people forget some of these "dargons" run masive companies which fright their own stuff I am sure staples do.

To say these people know nothing about this business is tosh of cause they do.It was the idea that failed not the people investing.(well they did in a way they lost their money:))