The Next Shoe to Drop Is........

[Mike Norvell Sr.]

For a multitude of reasons, I chose to take a break from this and all other forums for the last few months.

During this time, I rediscovered local markets and real life deals far removed from the fantasy land of these multitudes of internet offers.

Had a great experience working with a marketing company that put me in contact with dozens of small business owners per week. Funny how those who have to stay rooted in the reality of running a retail business don't have time for endless conference calls or extended lunch meetings....

Its not funny to listen to how many are scraping to get by, or who are waiting on a change in the "economy" that will return their customers.

Many of these are not in the statistics of the unemployed, but are in effect making less than minimum wage. Many have employees that are closer every week to being officially unemployed, along with the store owners who will be closing up one day for the last time.

I did find a few wholesalers who are doing well, buying up stock for pennies on the dollar from stores that are closing up. One in particular is so overstocked he now has a few of his own stores running just to have a place to put all the merchandise he is accumulating.

It reminds me of a year ago when I was working with a few wholesalers with quit claim bulk REO packages. They were buying them cheap but were having problems in getting them sold......

Its not all bad.....but there is a real commercial/retail problem coming along soon here in Central Fl. Already, there are shopping centers with over 50% occupancy and many industrial parks are in the same condition. Based on my recent surveys, this will continue to worsen as more and more small business owners finally close thier doors.

Without tax incentives, and people with jobs to keep small business in business, there is nothing to keep this trend from increasing.

The only upside is that one day the tipping point will come where the remaining stores will end up with a proportionate share of the customers.

In the meantime, my days of meeting with business owners across Central Fl has reminded me of the balance of supply and demand as was taught to me in a business law course many years ago.

Of course, many of these failing business owners have not been paying their other bills either.....like health insurance, mortgages, car payments.....

Just a few of my thoughts this beautiful Sunday morning. Somewhere in this blog post is a silver lining of opportunity, but with the realization that for every "deal" there is someone walking the other way suffering the loss.

To Our Success.

Mike Norvell Sr