Thursday, July 28, 2011

The Middle Man (Idea #53)

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.

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