When talking about business deals, the middle man always makes things more expensive. When a manufacturer makes a product and sells it straight to the customer, they eliminate "the middle man" which is a store or website owned by somebody else.
But sometimes a middle man is needed. Sometimes the customer would never know about the product without the middle man and the transaction would never occur. This is why the middle man gets paid. This idea is for the middle man.
Middle men don't need a store or even their own website anymore. Amazon and Ebay will do that for a reasonable fee. The trick is finding good deals with suppliers. I think this is where the market has a huge hole.
It would be a company of very small teams (2 or 3 people) who research trending or new products from other countries. The teams travel the world looking for interesting products, and find out all information about the supply chain for these products (cost to produce, economies of scale, foreign exchange fees, etc.).
A big customer would be businesses with shipping and storage expertise. For instance there could be a contract for 5 new products per month for 3 months. which they will have the opportunity to review.
Yes, they could hire people to do this job, but that's not what they do. They are a warehouse and maybe an internet sales company. They need a middle man.
Thursday, July 28, 2011
Friday, July 22, 2011
Online Flexible Franchise (Idea #52)
The pitch to the customer is something like this, "For $500 you can be your own boss. You will make $500 for every $1,000 of product that you sell. You choose the products that you sell, and sell on your own terms."
A customer can buy a license to sell items which they stock at their own home (renewable annually). The business supplies them with a franchise number and the ability to buy hundreds of items at wholesale prices. The business also gives them an online site with credit card transactions, shopping cart, and a basic site to sell their products. The business doesn't push specific products, just presents as many value priced options as possible.
The business is really offering the expertise in the supply chain. There are people who could sell products, but who would be intimidated by starting a business and contacting suppliers. It's a lot of work to find products that would sell and work out all of the details for internet sales.
A customer can buy a license to sell items which they stock at their own home (renewable annually). The business supplies them with a franchise number and the ability to buy hundreds of items at wholesale prices. The business also gives them an online site with credit card transactions, shopping cart, and a basic site to sell their products. The business doesn't push specific products, just presents as many value priced options as possible.
The business is really offering the expertise in the supply chain. There are people who could sell products, but who would be intimidated by starting a business and contacting suppliers. It's a lot of work to find products that would sell and work out all of the details for internet sales.
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