Folks,
Another reason why I like free-market economics is the thinking is
Ockam-razor sharp and clear.
Malaria is one of the many scourges of mankind. It can be controlled with
harsh means such as DDT; it can be palliated with expensive drugs if you
contract it. It remains a problem.
Malaria is carried by mosquitoes, or to put it another way... malaria is a
bug that is delivered to you by mosquitoes. Malaria is a problem for mosquitoes
too. This bug may not bother mosquitoes, but they don't need it.
So why not solve the problem by curing mosquitoes of malaria (or west nile
virus, or whatever else)? If so, mosquitoes are reduced to giving one an
amusing itch, rather than being death-dealers.
Of course there is no reason why not... I am told mosquitoes are less complex
than humans and therefore easier for which to develop medicine and cures. And
the idea has the advantage of not needing to clear FDA human trials and
approval.
Of course, it has to work. And there is the problem of getting mosquitoes to
cooperate in their cure... but apparently science has solved this problem
already by understanding the behaviour of insects and thus being able to apply
any desired treatment.
So what is left is the #1 question... who is the customer? Will there be
enough orders from customers aggregate to cover the suppliers minimum production
run, profitably, in a workable amount of time?
It is easy enough to test... who buys malaria related products now? Who
would buy? Google thrives because it did exactly the opposite of the advice of
the experts (google.com gets people AWAY from their site as quickly as possible,
whereas the experts wasted billions trying to figure out how to get people to
STAY at a website).
As the experts legislate and litigate over music on the internet, and
degenerate into recommendations for destroying the computers (see Sen Orrin
Hatch) of
people who disagree with arbitrary rules, Steve Jobs has introduced a
profitable way to do sell music on the net. This week he added a feature: you
can
set up an account that automatically puts "allowance money" from your credit
card each month for your kids to spend buying music from Apple's iTunes.
'tis a challenge to see how one can make money curing mosquitoes... but it
will be the free marketers who come up with the solution. Any ideas?
John
Saturday, November 29, 2003
Mosquitoes
How to import from overseas - customs etc.
Re: [spiers] How to import from overseas - customs etc.
In a message dated 11/27/03 7:49:34 AM, crowboy@earthlink.net writes:
We have the custom adapters machined locally... I know you will say why am
I making them
locally and not at the best place in the world but because the digital
camera model changes every 9 months we have to have hands on control,
as these adapters require thousands of a millimeter specifications.
***Whoa... who am I to argue with your customers? If your customers are
buying from you they must think you are the best place in teh world. My on;ly
reaction would be "can you export, since people seem to think you are the best
place?"***
I am wanting to buy certain camera
accessories from Japan/India rather than buying them from the US reps.
How do I ask about shipping and customs without looking like I am unfamiliar
with the process? Can I import say up to $1500.00 without having to have a
customs broker? I did buy $300.00 for India last year and the guy just sent
it regular airmail no special customs procedures.
***Forget about rules and regs and process... ONLY consider whether you will
get enough orders to cover the suppliers minimum production requirement in a
workable amount of time, profitably. (In this instance "minimum" may well be
the minimum he will sell you out of the stocks he buys directly from Canon's
factory, but a minimum is a minimum, and that is the point). Now IF you will
get enough orders to cover the suppliers minimum production requirement in a
workable amount of time, profitably, THEN you can choose the rules and regs and
process you will want to work under. Get quotes from the supplier, decide what
dollar volume and weights and measures we are talking about, and then look at
cost options. Once you decide what you will do, then you will be perfectly
well informed in that narrow area you choose to operate. For now, get the
primary facts. ***
I was thinking I would send a cover sheet, and a letter of introduction
(what my web site sells) , my resellers certificate and my first
order....................could I include my questions about shipping,
insurance, minimums, delivery times, in my letter?
***Since you are in essence buying an accessory, an add-on sale, to your main
line, a product you make, then you will almost necessarily be buying from
distributors. In this instance I would quote the model number, the quantity you
sell in a three month period (assuming you need 4 inventory turns per year)
and ask them make you a good price FOB their port. As frou-frou you can then
talk about who you are, but that won't be too important because you could make
that up and they couldn't check. You may want to mention you'd like to pay by
credit card (which will require they jack up the price to cover the fees, but
then it solves the problem of insecure payments).***
I am finding that small overseas companies have no problem selling to me
directly, I would like to convince the larger companies to also sell to me
but am unsure what the politics are.............. For example, I buy
filters from THK Photos in California and they get them from Japan......
they sell to retailers all over the US but there is one person on the web
(who lives in the US) who buys directly from Japan and under cuts the rest
of us. I know he sells less than we do.........but can't ask him how he
does it.......since we are competitors. (note I would keep my prices
competitive without undercutting other retailers as my customers like buying
everything in one place and feel they already get a fair price.)
***Well, you have no idea if the web seller is turning a profit and that is
the important thing. In any event, THK Photos is doing exactly what I say not
to do, and that is buy things off the shelf from overseas. I say don't do it,
because of people like the internet guy and you, who will simply go direct.
THK has spent much time and money building a distribution channel and a
customer base, only to lose it to you and the other fellow. I suspect the way
the
internet guy got his supply was he simply asked, as you are preparing to do.
If so, the difference is he likely could care less what people thought of him,
and he just went ahead. Learn from internet guy!***
I am going to buy the rubber hoods first as a test since the items are
cheap, they should sell for $1.50-2.00 wholesale but I do want to buy more
expensive items over the next year from other manufactures and could use any
help you can offer or any books or articles I might read to bone up.>>
***No. You do the two steps I laid out above, and then YOU write an article!
Lots of people will want to read it.***
John
Wednesday, November 26, 2003
How to import from overseas - customs etc.
Hi John,
I took your class 4 years to so ago and have a web site where we, my partner
and I, sell custom adapters for the Canon G-series digital cameras and the
new Canon A-80 coming out this next month.
We have the custom adapters machined locally (Bellingham) out of aluminum,
anodized, and finished.....................very high quality. (note Canon
makes an all plastic adapter) I know you will say why am I making them
locally and not at the best place in the world but because the digital
camera model changes every 9 months we have to have hands on control,
as these adapters require thousands of a millimeter specifications.
Anyway, we also sell filters and accessories so that a person can do one
stop shopping............for first time digital camera users it can be a
daunting task to figure out what to add to their cameras.
We have had an excellent year and I am wanting to buy certain camera
accessories from Japan/India rather than buying them from the US reps.
For example I have contacted a Japanese wholesaler of Rubber lens hoods by
phone and they gave me a fax number and said go ahead and send a fax with
your order request. Now I have read your advice on letterheads etc. and
know I don't need a license..........but I do have a few questions.
How do I ask about shipping and customs without looking like I am unfamiliar
with the process? Can I import say up to $1500.00 without having to have a
customs broker? I did buy $300.00 for India last year and the guy just sent
it regular airmail no special customs procedures.
I was thinking I would send a cover sheet, and a letter of introduction
(what my web site sells) , my resellers certificate and my first
order....................could I include my questions about shipping,
insurance, minimums, delivery times, in my letter?
I am finding that small overseas companies have no problem selling to me
directly, I would like to convince the larger companies to also sell to me
but am unsure what the politics are.............. For example, I buy
filters from THK Photos in California and they get them from Japan......
they sell to retailers all over the US but there is one person on the web
(who lives in the US) who buys directly from Japan and under cuts the rest
of us. I know he sells less than we do.........but can't ask him how he
does it.......since we are competitors. (note I would keep my prices
competitive without undercutting other retailers as my customers like buying
everything in one place and feel they already get a fair price.)
I am going to buy the rubber hoods first as a test since the items are
cheap, they should sell for $1.50-2.00 wholesale but I do want to buy more
expensive items over the next year from other manufactures and could use any
help you can offer or any books or articles I might read to bone up.
Thank you for inspiring my independent spirit.................
Regards,
Susan/LensMate
crowboy@earthlink.net
http://www.lensmateonline.com
Monday, November 24, 2003
Advice on situation
RE: [spiers] Advice on situation
Kevin, where is the business located?
Keith
-----Original Message-----
From: MisterKJL@aol.com [mailto:MisterKJL@aol.com]
Sent: Saturday, November 22, 2003 2:42 PM
To: spiers@yahoogroups.com
Subject: [spiers] Advice on situation
John:
I'd like your advice on my situation:
My wife inherited an import business from her father 6 months ago. We
hired someone who was unemployed to help run it and now he no longer desires
to continue. (He prefers a 9-5 job than being an entrepenuer)
The business imports restaurant goods from Asia, warehouses them and sells
& distributes them throughout CA. Small player in a field of three
domninant players. We do have an established customer and supplier list.
At its prime, the business grossed over $360k a year (net $60k), but my
father in law was stricken with cancer a couple years ago and now the
business gross around $8k a month (down to 5 major customers from 20).
Our original thought was to try to build the business back and then some,
while we both continued our own professions. My wife and I are not sure
what to do with this business at this point.
1) liquidte the inventory?
2) sell the business outright?
3) hire someone else to run it?
What are your thoughts in this situation?
Thanks,
Kevin
Sunday, November 23, 2003
Advice on situation
Re: [spiers] Advice on situation
In a message dated 11/22/03 8:55:51 PM, MisterKJL@aol.com writes:
I'd like your advice on my situation:
My wife inherited an import business from her father 6 months ago. We hired
someone who was unemployed to help run it and now he no longer desires to
continue. (He prefers a 9-5 job than being an entrepenuer)
***Sorry to hear you lost a father-in-law.***
The business imports restaurant goods from Asia, warehouses them and sells &
distributes them throughout CA. Small player in a field of three domninant
players. We do have an established customer and supplier list. At its prime,
the business grossed over $360k a year (net $60k), but my father in law was
stricken with cancer a couple years ago and now the business gross around $8k a
month (down to 5 major customers from 20).
Our original thought was to try to build the business back and then some,
while we both continued our own professions. My wife and I are not sure what to
do with this business at this point.
1) liquidte the inventory?
2) sell the business outright?
3) hire someone else to run it?
What are your thoughts in this situation?
***Liquidation will not get you much, and there may be some tax implications
on the inheritance,,, you ought to check out that angle. Your father in law,
was actually the business, those relationships, etc... when one considers any
price you'd consider reasonable they'd probably find starting their own biz
cheaper. Your numbers suggests the biz nets 16%, at the new sales level of
$96,000 you'd be able to pay someone $15,000 per year if you gave them all the
net. One can make more money being unemployed.
the only thing I can think of is if one of you had a passion for restaurant
supply biz, then quit your job and build it back up. Research what happens
when a family goes from double income from jobs as employees to one income as an
employee and another income as an entrepreneur. Your accountant can model
some scenarios for you. You may be surprised at how much less household income
can actually end up as a better standard of living, what with write-offs,
etc.***
John
Postal rates
Re: [spiers] Postal rates
In a message dated 11/22/03 9:20:01 AM, johnkuo@hotmail.com writes:
<
I'm ready to ship a package of samples to Asia...I was wondering if
anyone knows which shipper is the cheapest? So far I think US postal
office is the cheapest but I'm not sure about their tracking and
reliablity. Is there a website that will compare postal rates from
various shippers? Please give me some advise - thanks in advance :)>>
***Yes my understanding is USPO is cheapest, but reliability is generally
good, just slow. if google does not cough up a website that makes comparisons,
then you'll probably have to build your own. If so, do share it with teh rest
of us!***
John
NTDB Raw Data
Re: [spiers] NTDB Raw Data
In a message dated 11/18/03 4:16:55 PM, kismetzz@yahoo.com writes:
I suppose you didn't get my last email about getting the raw NTDB
data huh? Well, I asked if you have any good tips on getting around
the website.
Sorry, I must have missed this... the tutorials are at
http://www.johnspiers.com/NTDB.html
John
We are buying a business!
Re: [spiers] We are buying a business!
Sorry about the delay, here is my reply!
In a message dated 11/16/03 2:34:04 PM, kismetzz@yahoo.com writes:
1. We are definitely thinking about moving all the inventories to a
pick and pack service (they have their own warehouse now).
Currently, the product are made in 2 European countries and a
country in Latin America, so we are thinking about finding a P&P
service in the east coast.
***Get your competitors catalogs, and see where they have the "FOB point" for
their products in the terms and conbditions of sale. That might help narrow
down WHERE to have your pick and pack operation.***
However, these countries are not the best
places to have our product made because our competitors are going to
China and other asian countries.
***Make sure they are truly competitors and not low budget versions of what
you sell. What do YOUR customers say about the product? Are YOUR customers
saying "the same comes from china"?***
We would eventually go to Asia too
but then, do we relocate our P&P back to west coast from the east
coast since it's closer to Asia then or should we simply locate
ourselves in the west coast from the very beginning?
***Again, assuming you have the source right, then where are your competitors
warehousing?***
2. The P&P services also provide customer services like a telephone
line and a customer service representative to answer phone calls and
take orders and so on. What do you think about the quality of these
services? Are they worth outsourcing if we just want to devote more
time in product development and marketing, without having to worry
about the sales and logistics departments?
***Well, these service orgs will always do more and more... it is really your
independent sales reps who should be doing the sales, not your warehouse.***
John
Advice on situation
Re: [spiers] Advice on situation
Hi JohnL,
I am interested to run this for you. However, where is the company located ?
best regards, Nareekan
MisterKJL@aol.com wrote:
John:
I'd like your advice on my situation:
My wife inherited an import business from her father 6 months ago. We hired
someone who was unemployed to help run it and now he no longer desires to
continue. (He prefers a 9-5 job than being an entrepenuer)
The business imports restaurant goods from Asia, warehouses them and sells &
distributes them throughout CA. Small player in a field of three domninant
players. We do have an established customer and supplier list. At its prime,
the business grossed over $360k a year (net $60k), but my father in law was
stricken with cancer a couple years ago and now the business gross around $8k a
month (down to 5 major customers from 20).
Our original thought was to try to build the business back and then some, while
we both continued our own professions. My wife and I are not sure what to do
with this business at this point.
1) liquidte the inventory?
2) sell the business outright?
3) hire someone else to run it?
What are your thoughts in this situation?
Thanks,
Kevin