DO YOU SUFFER FROM PPE PTSD?
If you have been in PPE for more than a minute, then you might already be suffering from PPE PTSD otherwise known as post-traumatic stress disorder related to personal protective equipment sales. You may already know you suffer from this if so, contact us and we can help. SERIOUS INQUIRES ONLY.
Many of you have dealt the Joker Brokers, the arbitrageur, the fraudsters, the ghost lots, the imposters, the time wasters, the constant conference calls, staying up around the clock waiting on other international time zones, which I am sure has really taken its toll on you.
One thing for sure is that we are still in the middle of a GLOBAL PANDEMIC
We have been told that our articles have resonated with many of our readers who can relate to them. We appreciate the support and our glad we can share our experience with you.
Nostradamus even predicted World War III will start in the twin years 2020
Make no mistake about it, we are at war!
The difference is, this war is not being fought with guns and bombs, its being fought with viral warfare (in other words, Covid-19 is the weapon).
Covid-19 has taken a toll on many people throughout the world who were not financially, physically or emotionally ready to deal with this unexpected stage of our lives.
As with any war, supplies become difficult to obtain when the demand surpasses the supply. This is the case with PPE. There is a shortage of gloves, masks, gowns and ventilators worldwide. Although recently it seemed like we were about to turn the corner we are now entering into the 2nd wave. Some say it could potentially be worse than the 1st wave.
I get asked all the time, why are so many people stockpiling PPE? There are many reasons for this.
Like with any War this one is driven by Political Control and Greed.
PPE PTSD roots from the emotional strain that is put on both buyers and sellers. They are now hesitant to move forward with new transactions due to flashbacks from previous nightmares they have experienced in the process of trying to close transactions that were unsuccessful.
After dozens of attempts in putting up bank comfort letters (BCL’s), letters of attestation (LOA’s) that are written by expensive attorneys who prepare 3M paperwork templates that need to be revised several times, has left them frustrated. These buyers are now jaded, cautious and frankly in disbelief that something this simple can be so difficult to close.
Sellers seem to have trouble finding LEGITIAMATE buyers as buyers have trouble finding LEGITAMATE sellers.
It becomes a game of who will lift their proverbial skirt first.
There really is no right or wrong way to transact PPE. Sometimes the buyers move 1st, sometimes the sellers move 1st and sometimes they do it simultaneously.
What ends up happening is that the buyers are now trying to demand the sellers to provide a letter of attestation for the product. They may ask for a redacted or unredacted SGS report or some form of proof of product (POP) upfront. The potential problem with that is if a seller is willing to follow this procedure, chances are the buyer is going to pay a premium for it. The other issue is that the POP may get floated by Joker Brokers or even lawyers which could be used by bad actors to perpetrate fraud.
In case you were not aware, an SGS report can go for 250k on the Black Market
This leads me to the next issue which is pricing.
One of the problems for buyers now a days is that they receive so many fake offers that are perpetrated by Joker Brokers, which leads to unrealistic expectations in regards to the realistic market prices for product.
A buyer may think they can get 100 million boxes of Cranberry Evolve 300ct gloves at $16.50 all in, when the going rate is in the $20 to $30 range per box.
You need to have realistic expectations if you plan on purchasing gloves and masks. As a broker ITS YOUR JOB to educate your buyer as to what to expect when looking to transact in PPE. This is the reason why you can get paid up to 10% for the transaction.
The next issue is that Attorneys can PROTECT and/or DESTROY a transaction
Most times attorneys will get involved to mediate and provide credibility and trust for both the buyer and the seller known as the attorney to attorney (A2A) call.
Attorneys may DESTROY transactions for multiple reasons
1st reason – unless the attorney is being paid in the transaction, they could care less whether its successful or not.
2nd reason – if the attorney is being paid in the transaction, from my experience they can be greedy and potentially cut out other parties in order to pay everyone as little commissions as possible.
3rd reason – the attorneys typically do not prioritize transactions; they are busy with closings and miss or delay A2A calls which could have taken weeks to get set up.
Our advice, work with an intermediary/ procurement team that is represented by an attorney to protect all parties. This way the attorney is on your side who can help ensure the intermediaries are represented professionally in the transaction, vet the buyer and seller.
PAPER UP – The best way to engage in a transaction is for all parties to agree to procedures prior to putting in detailed paperwork.
A simple NCNDA and an IMFPA with ref/contract ID is important. This should be in place to protect all parties prior to connecting a buyer and a seller, unless there is a relationship that exists at that time between the buyer and seller mandates/rep.
Sub-fee agreements can be drafted after you confirm you have an Actual Transaction
That leads me to one of the most important parts of a transaction, there really needs to be a relationship in place somewhere in the chain of communication to the buyer or the seller.
The closer you are to that relationship, the higher the likelihood you have of closing.
Many transactions fail before they get started because of Joker Brokers, improper expectation management in regard to procedures and pricing.
Please do not PROMISE anything out of your direct control
If somebody does not know what they’re doing they should not be involved in the negotiations, procedures or the closing of the transaction.
Have you ever heard the term that too many cooks in the kitchen ruin the meal, this could not truer than with a PPE transaction?
The reason I write these articles is to provide what I like to call AQUIRED WISDOM it’s the lessons that people learn from going through these mistakes and experiences so you can save time, energy and aggravation simply by reading an article.
I do not claim to be an expert in PPE, however after 10 years in the resource brokerage business I have realized that it’s remarkably similar to commodity transactions. The main elements of a transaction are pricing, procedures and logistics. It seems that the same Joker Brokers and fraudsters came out of the woodwork for PPE.
One of the main reasons people have difficulty closing transactions is due to the unregulated nature of this industry. Without a regulatory framework fraudsters, and naïve brokers do not understand how to mitigate risks for potential transactions. I do believe that this industry will be regulated one day. Resource brokering does not require a license, I don’t know if this industry will need a license in the future, what I do know is that there is a window of opportunity for us to not only help people but also to make a great deal of money provided that simple processes and procedures of engagement are followed.
If you are looking for a vetted channel to access sellers for gloves and masks, feel free to reach out to us. We are here to help.