GMC goes into Recievership

This article caught my eye on ABC News

It always concerned me that the Shelf Price of GMC products was so cheap by comparison of the big name labels. I am surprised at the downturn for GMC but I guess is yet another example of what must have been very low margin product being unable to build sufficient reserves to handle the downturn. Hopefully it will be sold quickly.

I know many tradesmen who bought GMC on the basis if it broke throw it away and buy a new one.

You may remember the label quite well as the Advertising profile was extremely high as well. The old philosophy of high advertising presence incurring a high overhead versus low margin a formula destined to fail.Or is it a casualty of the big Chains forcing the margins down so far that they finally popped.

Iron ore sold at discount prices

This article of Ships returned from China without Letters of Credit smacks of "Contract - repudiation"

It is not unusual for buyers to attempt a contract repudiation process in times like these. The article does not say that in so many words, but I would suggest that is more than likely in this situation.

It is not unusual when Exchange Rates go into to decline to see this type of tactic be employed by International Buyers. With the Australian Dollar tumbling quite so significantly against the US Dollar there has been a significant change in the prospect of Exchange Profit going begging for someone.

The Case for Credit Insurance for such large sales remains as valid today as it ever has. Contract Repudiation is an "Insurable Risk" and exporters need to consider very closely the the exposure they now carry in these volatile times.

National Credit Insurance Brokers and many others can assist organisations in establish the best protection they can find and should seriously consider this very viable option.

Welcome

Hi - I have been in the Banking, Finance and Credit Insurance Industry all my working life.

As a founding owner/director of National Credit Insurance (Brokers) and supposedly "semi-retired" I have decided that in these crazy times it is time I harnessed up and become more involved in the area I love so much.

The website www.credit.com.au is not yet active but stand by I will announce it to the world soon.

In the meantime watch this space and if you need help in risk management in the credit world, in the Domestic Trade credit market, or the Export Trade Credit Market - here I am.

I write a number of Blogs - so excuse my Blog profile but feel free to visit my other passions Aoede and Save the Murray.