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Originally posted by Teufel Hunden:
</font><blockquote>quote:</font><hr />Originally posted by BirdOfPrey01:
It costs alot to buy products and just let them sit around.
</font><blockquote>quote:</font><hr />Originally posted by BirdOfPrey01:
It costs alot to buy products and just let them sit around.
There are two things to remember when it comes to companies keeping stock of a particular product: 1) As it was seen with the 1st GP from FFF, the more of something you buy, the less it costs (to a certain degree) 2) You will not lose potential customers because they're turned off by the long wait. Therefore, you cut your costs down (which will make your product more attractive to customers), and you can guarantee prompt delivery, which will leave your customers feeling good about your company. Also, they don't buy products to just "sit around." That's where the marketing campaign comes in with goals of selling the product, so the quantity in stock doesn't just sit around. Of course, there's risk involved when it comes to deciding how much of a particular product should be purchased and put up for sale, but that risk is called business. </font>[/QUOTE]Obviously you have never run a small business that sold custom products.
My friend runs a small computer business. He does not build a room full of computers and sell them. the reason why?
1.) If he makes before the buyer can customize them, they are not custom.
2.) He does not have the funds to front thousands of dollars for items that may not sell. He does not have the money to advertise more than a few times a year.
3.) He does not have to spend money and get stuck with products that he may never use or sell in a package deal.
So, im guessing Tiago has a great marketing campaign right? I see his ads all the time in Hot Rod Magazine. Since he has thousands to front for a advertisement campaign.
I think you need to understand that a small business is not run like a corporate business.
Large corporate companies can afford not sell thousands of items, they can afford to let them sit or be thrown away, or put on low sale. Because their net profit is still going to shut out the lost sales. Regaurdless. Corporate companies compete with other companies.
Small businesses compete by making their products better and more reliable and take less profit. Like Mr. P's Tire Shop. They have been around for more than 30 years, because they are well respected and rarely get complaints. Unlike Firestone and GoodYear Shops, that get alot of complaints. The difference?
GoodYear and Firestone are huge! Mr P's is only 2 locations. And its owned by one man. Firestone/Good Year rely on advertisements. Mr P's relies on good service for low cost.
Tire Rotation at Mr P's = 10.00
Tire Rotation at Firestone = 29.00
Also note. Selling commodities vs selling toys have very different marketing strategies.
Commodities usually sell themselves. Toys must be advertised or wanted by a special customer.
That is all aftermarket auto parts are... toys [img]smile.gif[/img]
Not every business is the same.
Walmart can afford to buy 100000 bottles of defective hair spray and only sell 20000 in 6 months. Reason why? They can front the money. And even if they put them on low sale. They still make profit.
Im surprised you guys fall for that business cost crap they tell the people.
"Oh, we arnt ripping you off, we have to pay our under paid workers and pay electricity and taxes, and gas bills for our store that our giant corporation owns." Walmart made a 8.8 billion dollar profit last year. which means another 50 stores will be put up. They will still have 8.7 billion dollars left after those stores.
Tiago could of sold the kits for $4000, if half the people dropped out of the GP, he would still profit the same if not a little more than the number of people now at $2600, thats if he really marked up anything, judging by the items he did, but he did us a favor also, and the companies building the products also ask for more fees than just for raw materials, but im willing to pay the costs for customized products.
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