Monday, January 10, 2011

Matthew Has A Question

As you know companies use different pricing strategies between geographic markets.(Ex. We are Belgium citizens and we know there is a premium above cost on Belgium candy in the US) How could we determine the best way to take advantage of that premium. Would you take and attempt to become a wholesaler in Belgium (or if you could buy at retail) and market your products directly to consumers or to perhaps smaller businesses? Obviously, anyone could do this but there is a lot of work involved, weeding out most people who would try it. 


Matthew,
Yes, USA pays the highest price for things it imports.
First you are assuming that no one else has tried to arbitrage the difference.  I'd first try to figure out how come nobody else is beating the system.
You can test either scenario you mention above.  Simply take samples to people you would expect to buy and say "I believe if I import these chocolates, you will buy them from me, am I right?"  Listen to the response...  you'll get an honest answer back on your honest easy question.  Then proceed based on what you learn from several questions at target retailers.
What weeds people out is passion... do you have a passion for fine chocolates?  In Seattle a woman who is doing well with chocolates with rock salt on top.  Actually surprisingly good.  You can mail order some.
My guess is if you get into chocolates, you'll end up designing your own.



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