Overcoming Wholesaler Challenges

Although every business has its challenges, a few are unique to wholesalers. To have a successful wholesale business, you have to overcome these issues. Here are some wholesaler challenges and how to overcome them.

Problem: Knowing Exact Profit Margins per Product

Although the cost of goods sold will tell you your profits, you do not know your actual profits per product until after a year-end review. This may be too late for a wholesaler. 

Solution: Real-Time Inventory Tracking

By tracking your inventory in real-time, you can measure exactly how much you make on each product and brand. By improving your inventory tracking software, you can view profit per product.

Problem: Uneven Supply and Demand

An uneven supply and demand chain can lead to overstock or shortages of your goods. If a customer needs something immediately and you don’t have it, you will have to order it from the supplier who may have to manufacture it. 

Solution: Inventory Control and Lead Time Tracking

There are two solutions to this problem that can work together. With inventory tracking, you can see when you are low on a product and order more ahead of demand. Having an accurate idea of how much lead time each supplier needs makes the process of staying ahead of demand easier.

You can overcome many wholesaler challenges with proper record-keeping and product tracking. It just takes some planning.

When preparing for the worst, many companies automatically think about damaged and lost property. In the aftermath of a fire or other natural disaster, it’s important to consider what’s been lost and how that affects your ongoing work and future obligations. You’ll need to notify employees, clients, and other business partners that might be impacted by these losses. While property insurance can cover damages to your building and equipment, what will you do about lost income and other costs associated with the interruption to your work?

Understanding Business Interruption Insurance

The time between a covered event and recovery can be significant. Between cleanup, repair and replacement of lost items, and reconstruction, your ability to make an income may be limited. Business interruption insurance can cover the following:

  • Expenses for temporary relocation
  • Renting temporary equipment
  • Providing income while rebuilding

A business interruption policy can help you meet financial obligations for a set period of time as you go through the recovery process.

Taking a Complete Approach

As a responsible business owner, you should have a disaster recovery plan in place ahead of time. Being prepared with a plan and the right insurance coverage is good for you, your company, and everyone you do business with.

You may rent out your dwelling as a part of your career or as a way to make some money on the side. Regardless of why you rent, you should understand some risks. Tenants can be unpredictable, so you should be prepared for their actions.

Understanding these common risks helps show why rental dwelling insurance can be so beneficial.

Understanding the Liabilities 

Again, tenants can be unpredictable. What if one of them throws a party, which results in the vandalism of your property? On the other hand, a well-meaning tenant could break an appliance.

This is all on top of normal liabilities you could face. An appliance could malfunction, causing injury to your tenant. Flooding, fire, earthquakes or other natural disasters could destroy your property.

How Insurance Can Help

All of these expenses add up. Next thing you know, you could find yourself sinking into the financial drain of these claims. This is why insurance is important.

Landlord insurance can provide financial assistance for a variety of different claims. If a claim goes to court, having adequate coverage can help out with legal fees.

Having adequate coverage can give you peace of mind. You can focus on benefitting from your rentals, not worrying about what could go wrong. 

There are many working components involved in a single insurance policy. While you may have a general understanding of the basics, such as the risks of your industry and which coverage options aim to reduce your exposures, you may also not know about some of the other factors that can influence your policy. For example, experience modification rates can often play a big part in how protected you feel. Take a look at these points to gain insight into your options and understand this factor better. 

What Is an Ex Modification Factor?

Essentially, an ex mod factor is related to your workers’ compensation policy. The mod is meant to compare your history of claims with similar companies across your industry. This is done in order to provide unique coverage and rates that accurately reflect your needs. The mod also tends to provide more control to the insured, which means that you will be able to manage your costs in a way that feels accurate. Points that can influence your ex modification rate can include: 

  • The size of your business
  • How many workers you employ
  • Your history of compensation claims

How Your Mod Impacts Your Insurance

While there are many straightforward aspects of insuring a business, there are also plenty of points you may not fully understand. Take time to learn about your ex modification rate and see what it can do for your future.

Finding the best insurance for your business can often prove a bit more challenging than many realize. Though it might seem like a traditional arrangement is the best way to go about things, you may be surprised to discover that this is not always the case. In fact, there are countless companies that will benefit more from pursuing alternatives to such traditional options. A great example of this can be found in the option of retaining risks. Review these points to learn more.

Loss Retention Options

The concept of loss retention can often be a bit difficult to understand. After all, most people take out insurance so that they don’t have to deal with the risks associated with their industries. Naturally, there are some situations where this setup will be the best for your needs. If you’re looking to cover risks that are not typically handled by traditional plans, then a plan for retaining risks can give you a lot more control. Other options that can be useful to consider when taking out your coverage can include:

Basic Coverage

There are plenty of points to keep in mind when it comes to taking out insurance for your business. As long as you give yourself the opportunity to review all choices available, you should have no trouble finding the ideal fit.

Winter weather can quickly become dangerous for people and homes, and heavy snow can cause damage to roofs, foundations, and pipes. In many cases, your homeowners’ insurance will cover damages related to winter storms. However, that is rarely the case when the damage was preventable with routine maintenance. The following tips can help protect your home from snow damage. 

Keep Trees Trimmed Away From Buildings

Limbs can become too heavy for a tree to support when they are covered in snow and ice. If one breaks too close to your home, it can crash into the roof causing structural damage and potentially letting wet weather inside. Be sure all branches are at least 10 feet from the house to be safe. 

Clean Gutters and Install Ice Breakers Where Needed

Snow that cannot get off the roof can cause water damage. Be sure the gutters are clear so any melting snow can drain off. Also, if you have a metal roof, check to see if ice breakers are recommended and have them installed if needed. 

Remove Snow From Around the Foundation

While you probably think to clear walkways and around cars, you should also show the ground around your foundation some attention. Snow that is left around the house can cause problems once it starts to melt and pool against the foundation. 

Talk to your insurance agent about snow damage & homeowner insurance to learn about additional measures you can take to protect your home. 

An auto dealership owner must protect against liabilities unique to their business. These liabilities often require specific types of insurance in addition to the basics any company must carry. Here are two of the additional coverages provided by used auto dealer insurance programs that dealerships may need.

Garage Liability Insurance

Most businesses must carry general liability insurance, which covers only some of the liabilities a dealership faces. Garage liability insurance is an umbrella policy that provides an extra layer of protection that fills gaps in used auto dealers’ general liability coverage. It covers on-site customer injuries and may also cover things like employee discrimination lawsuits or third-party property damage.

Garage Keeper’s Insurance

Used auto dealers who service customer vehicles on-site might need garage keeper’s insurance. This insurance covers any physical damage that may occur to a customer’s vehicle while in the dealership’s care. Damage could include fire, vandalism or extreme weather. It would also cover the theft of a customer’s vehicle.

Auto dealers must protect against some different types of liability and property loss that standard business insurance does not cover. Many insurance companies offer used auto dealer insurance programs that bundle all the different coverages a used auto dealership needs.

Picking the right coverage for your business takes time. For plenty of organizations, a traditional insurance arrangement is going to be a solid choice. Unfortunately, there are countless scenarios where a specialized arrangement is going to be much more useful. Failing to look at all of the options in front of you can be dangerous, so you should always dedicate time to understanding alternative choices like captive insurance plans in order for you to see which is the most useful for your needs.

What Are Captive Arrangements?

Captive arrangements have been quite popular for business owners in certain industries. Essentially,  association captives are policies where the risks are assumed by all members of the cell. Typically, the cell will be composed of other members in your industry, helping to create a situation where all parties can benefit and share responsibility. This arrangement is similar to other captive arrangements for groups, with the exception that all parties are in a shared industry. Areas where this type of arrangement can be helpful include: 

  • Businesses in niche industries
  • Need for specialized workers’ compensation 
  • Organizations requiring flexible offerings

What Choice Is Best?

While captive arrangements will not be the right fit for all businesses, a good amount of companies will benefit from the choice. Take time to learn more about this service to see if it is a sensible choice for your future.

Cargo freighters handle much of the world’s international trade. They are the enormous vessels that cross oceans carrying everything from cars and trucks to toiletries. There are several risks in the cargo shipping industry that vessels must be protected against.

1. Piracy

When a ship is at sea, it is necessarily vulnerable. In commercial shipping risk management, piracy must always be considered a legitimate threat. There is always the potential for piracy and so shipping companies should always have emergency plans that address the potential threats involved. 

2. Autonomous Shipping

A lot can go wrong when there are not crews of people on board that have been prepared to handle potentially disruptive situations. Commercial shipping risk management relies on computer technology that can be tampered with. Any number of potentially bad situations exist if a computer’s autonomous system is hacked or experiences a cyberattack.

3. Natural Elements

The ocean will always have an association with risk. Even though sophisticated equipment exists to detect atmospheric issues, storms can be unpredictable and tremendously destructive. Even a storm that doesn’t cause damage to a vessel could keep it from arriving at a port, and thereby delaying business.

Commercial shipping is the industry that drives the world. Vessels must be protected against threats, whether on the dock or a thousand nautical miles off the coast.

Business owners who provide insurance for their employees often believe their only choice is to self-insure. While this is a viable option, it is not the only one. Choosing between self vs. captive insurance is worth careful consideration, especially for those companies whose income fluctuates throughout the year.

Pros of Self and Captive Insurance

Self-insurance is a common choice among small businesses. Companies who choose this option always know where their money is going. They also only pay as employees make claims, meaning both employee and employer save money if they do not use the insurance.

Captive insurance, on the other hand, is more streamlined. It allows for more financial control that lets you pay smaller deductibles. You also have more flexibility with the money than self-insurance would provide.

Cons of Self and Captive Insurance

Despite the positives, there are drawbacks to both options. Self-insurance costs more to set up initially. You’ll also be responsible for processing and paying for employees who rack up high claims, either through an accident or health issues.

Choosing captive insurance may allow you more financial control, but it also means you are responsible for putting in the time and effort to set up and maintain the insurance. Captive insurance may prove prohibitive to those unable to devote the proper resources.

The choice between self vs. captive insurance is an important one to make. Be sure to weigh your options carefully.


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