Originally Posted by shadykay sf
Ordered a pair of Light Brown Dub Monks...still confused as to the payment process. I didn't input any CC info at all.
I know that they said they will send an invoice when the shoes are ready to ship...but is that a good business practice? What if they have prepped the shoes and I all of a sudden change my mind...that is time lost for them.
In my opinion, it's actually good business practice for a small family owned business.
To me, it seems Meermin uses online orders to allocate production at their factories to certain models and sizes. When the shoes are finished, they allocate them to the appropriate orders and request payment. Once they receive payment, they can fulfil an order. If an order is not paid for, Meermin can allocate the shoes to the next order and adjust production at the factory, taking into account the amount of cancelled orders and new orders placed.
By maintaining a steady production rate and keeping demand greater than supply, Meermin is able to keep most of its assets in cash rather than in inventory and working capital. This is a conservative business approach, which avoids issues such as cash flow that can result due to incorrect market forecasting. While this business model does not incur great risk, it also does not promote rapid growth.