Reblogging this with reference to the bankruptcy of Hanjin Shipping – it’s not a disaster, it’s to be expected in light of a shrinking market for international goods. Other companies will come in to replace them – and the market will improve for those remaining. If we all have less disposable income, this market will continue to shrink. It’s just a fact. It’s also a fact that if more companies move into that market, or expand their operation in that market, someone will have to reduce theirs, or go out of business.
Years ago I ran a small horticultural business, and I recall a more experienced nurseryman than I explaining the cause and effect of a ‘market correction.’
Say you start a small annual event – a plant sale. You invite just ten nurseries and you advertise it like crazy. Those ten nurseries all have a fabulous day, and book to come again next year.
Then you decide that you are onto a winner, so you invite fifteen nurseries the following year, and as the event is still new you advertise like crazy and everybody has a good day.
Year three you invite twenty nurseries, and advertise in the same old places as last year. Everybody has an OK day – numbers through the gate are static.
The year after you invite twenty five nurseries, and again everyone has an OK day – the take is a little lower, and you’re seeing…
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