Questions

Re: [spiers] Questions

John,

thanks for your kind words, and welcome aboard.

On Sat, 7 Jan 2006 13:47:01 -0700, wrote :
My research shows the idea to be essentially unique and various
> Australians that I've shared the concept with agree it could be very
> popular. ...

***It's a hard requirement, like measure twice and cut once, but the only
research that
matters is orders from customers... I wouldn't do anything without orders from
customers for
the samples you present. That will answer all your subsequent questions. As
Drucker says,
"entrepreneurs do not take risks... (Innovation and Entrepreneurship... Page
139... check it
out the the library or find an amazon link at
http://www.johnspiers.com/resources.html )...
so we minimize risk by geting orders first...


1) I buy from manufacturer and sell to retailers
2) I buy from manufacturer and sell to importers
3) I partner with manufacturer and share revenue. Any comments on
> the advantages/disadvantages of these three business structures?

I pick #3, assuming an australian importer, is placing orders with you.

>
> My research shows that a mousepad ... retail for
> at least $10USD. > Why is the manufacturer's cost so much cheaper than the
retail price?

***this is where the process of getting orders first reveals answers to your
questions. I've
used mousepads for 20 years...and i have never bought on. Mousepads are free.
They cost
75 cent in Taiwan cause they are a giveaway (or they are a giveaway cuz they
cost 75 cents). I
saw a $30 mousepad in a museum store that was a oriental rug. cute. it is a
consistently
available item, with new design every so often, so they must sell. (and aren't
mouses
evolving into stationary items on computers?) Perhaps you anticipate selling
75 cents
mousepads for $10, when the $10 ones actually cost $2...perhaps there is a mixup
in the
analysis of the chain...***

It
> seems to mean either I can mark them up almost 7x and make insane profits or
> use the standard 100% markup and then let the retailer make all the big
> profit. >
> Any advice or comments would be greatly appreciated.

***I can't say exactly if there is a problem, but bottom line, get the orders
first, then proceed,
A garage full of mousepads would be serious annoyance.***

John

Bookmark this post --- Email this post