How do I explain my packaging shop’s rush-order practices to a buyer?
Be specific. Describe how a rush job is accepted, who decides, how it is priced, and what it displaces on the schedule. Buyers worry that rush work hides overtime, strained machines and unhappy regular customers, so show the process and its actual effect.
Start by putting rush work on the record. Pull a sample of recent rush jobs and show what each customer was charged, what it cost to produce, and how it affected the jobs around it. If rush work carries a premium, show it. If you absorb the cost to keep customers happy, say so, because the buyer will otherwise discover it later.
Then explain the mechanics. Who has the authority to say yes to a rush? Is there a written rule, or is it a judgment call you make? A practice that depends on your personal relationships is harder to hand over than one that follows a clear policy. Describe how overtime is handled and how often the same people carry the load. Finally, address the downside honestly. Talk about missed deadlines, stressed equipment and any customers who complained. Show what you have done to reduce rush demand, such as better planning with large accounts. That echoes the advice on preparing your business to sell: tidy, documented operations are easier to trust. A calm explanation helps. Buyers may see rush work as a strength if it wins loyal customers, and as a risk if it drains the plant. Present the facts first, then your view, and let the buyer reach their own conclusion.
Key takeaways
- Show real rush jobs with the price charged and the cost of producing them.
- Write down who approves a rush and the rule they follow.
- Own up to strain on staff, machines and regular customers.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment7 steps to increase your business’ value—before you sell it
- 02Business Development Bank of CanadaIndustryHow to sell your business
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