Mar 4, 2011

Business Loans or the Story of Apples and Oranges.



In the short term Apples allow guaranteed survival but there is something about Oranges that offer an improved sustainable life and an even more healthy future.  But Oranges are rare to find and not always available.

Sellers need to find Buyers of these life giving products.  The Apple sellers are becoming more in numbers as Apples are in good supply. Even with lowering prices the Apple sellers see a market for those who want to survive.

Those thinking long term survival do have a demand for Oranges when they can afford them but the market is tricky. Orange sellers have a complicated life themselves.  They want to retain their customers but don’t always have Oranges for sale.  So they have come up with a novel scheme.  They offer to sell Oranges at very reasonable to low prices for Oranges (which are still higher than Apples) but in the small print only to supply Oranges when they are available – otherwise Apples are supplied at Orange prices.  The track record says Oranges are supplied most of the time but there is no guarantee.  Actually the Orange Sellers don’t talk much about their track record unless pressed – they tend to rely on reputation or word on the street.  But the word is changing …

Then there are the adventurous Apple sellers; no, not the ones who just trade Apples; the ones who know that Buyers would really like to buy Oranges for longer life if they can buy them.  They offer Apples at good prices, maybe a touch over the regular Apple price but they claim that on occasions they will mix in a few Oranges if available at their slightly overpriced Apple prices.  When surviving on Apples this could be very appealing.

And of course the issue is all about risk.  If the Buyer goes for Oranges but is delivered Apples, he then has fewer funds to simply survive in the future.  But if the Buyer goes for Apples he may survive long enough and have sufficient funds to buy Oranges when they become available.

But the situation is dynamic.  As Oranges Sellers loose sales because there is growing doubt that they can deliver Oranges, some of the Apple sellers are looking at officially selling Apples and Oranges with new small print – Oranges will be more expensive than the sole Orange Sellers BUT if Oranges are not available they will supply Apples at the regular (not adventurous) rate until Oranges are available.  The Apple sellers have generally also been Apple eaters and know how to survive and they realize that in this growing market of Apple and Orange sellers they are in the ascendancy while the Orange Sellers see demand dropping even though the quantities of Apples and Oranges are the same or more than ever.

It is time for the Orange Sellers to decide if they can change and offer a product mix the Buyers can feel more certain about if they the Orange Sellers are to survive.

The bottom line is Buyers really want to know that Apples are Apples and Oranges are Oranges and want to know up front what they are buying.

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