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new business concept #1: A billion $ from a million $ invest

Postby thien63 » Thu Jan 15, 2009 10:23 am

thien63
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Posts: 65
Joined: Mon Mar 10, 2008 9:26 pm
if you have a company that everybody involved with you including your customers are benefit except your competitor .then you have a successful company. This business is base on this theory. This is a brand new business concept relate in retail business. This concept idea never have been execute by anybody or any company yet. I have this idea when I first arrive in China about 8 years ago, a city called Guangzhou , one of the top 3 cities in China. The other are Beijing and Shanghai.
Pretending this new concept have 2 parts for simple explanation. Some companies in the retail business use plan A, other retailers use plan B. That why this concept is new because it combine A and B.

The two big companies that come to my mind are Waltmart ( use A plan ) and Ebay ( use B plan ). They are huge, very successful and well known through out the world. I like to stop here and would like to ask you guys 2 question. You will see the how the new concept works next time.

1) What are the Waltmart company lacks of ?
2) What are the Ebay company lacks of ?

The new concept will use those missing ingredients from the two companies above to become a global company with the sales combine of waltmart + Ebay. This concept is for top 200 fortune companies in the world with only 1 million dollars investment to make it works. If you are not the top 200 then you need more money because of advertising expense.

Postby thien63 » Fri Jan 16, 2009 2:07 pm

thien63
Yellow Belt
 
Posts: 65
Joined: Mon Mar 10, 2008 9:26 pm
First, lets take a look at Walmart . Walmart has finite retail spaces . For example , a particular store can carry 100,000 different products. It will not fit a millions products in Walmart. That's why you won't see many products are not for sale in Waltmart . Plus it's cost a lot of investment to carry 1 millions products. This is not a problem just for Walmart only, but all others retail store across the world too. Beside the inventories and retail space cost, there are other cost associate with operating a company such as import tax, warehouses, shipping, advertising, huge employee's wages...

Second , lets take a look at Ebay, accountabilty is the main problem . Example, when you sell something on Ebay, you have to have a high rating. Will you buy a product from somebody in China or Africa.... If you bought something and not working, will the seller refund or from Ebay ? Ebay only act as a middle man, you can't get refunds direct from Ebay. The business transaction base on trust+high rating. This is not a 100% transaction. Lower rating mean you won't have a chance to get the product sold or get top price. So many products will not be on Ebay because they are not from foreign countries.
Last edited by thien63 on Fri Jan 16, 2009 7:08 pm, edited 1 time in total.

Postby thien63 » Sat Jan 17, 2009 11:33 am

thien63
Yellow Belt
 
Posts: 65
Joined: Mon Mar 10, 2008 9:26 pm
My idea is bring the products from manufacturers ( homemade, handcrafts, all sizes from litter bitsy to large company) directly to consumers.
New company handles the transactiosn, packaging, shipping, and resolve customer's issues. The advantage are:

COMPANY DON'T HAVE TO PAY:

1) Inventories ( theory: then you can sell every things under the sun )
2) Warehouses (just 1 warehouse to pack customer's order)­
3) Shipping ( customer pay shipping)
4) Import tax (customer buy direct from China, no import tax for company)


Company will made money by : manufacturer cost X commission percent.

Walmart bought their inventory at least 70% from China and some other Asia countries. So if a new company should a operation in China.
Why the consumer buy products from us? Since the company doesn't have to pay those fees above, the cost of each product is 60% cheaper than Walmart and also most likely less than EBAY but new merchandise. Plus the company carry so many products that Walmart or Ebay doesn't have. Customer have a choice to ship by ground or air. I have a method to save shipping cost for customers. At the end , if the customer can wait then the final price arrive to their house is average 50% less than walmart. Example a 65" mitsubishi LCD TV price at the factory for $1000+ $200 commission + $300 shipping. Same one sell for $3000 at local store in USA. Customer save $1500.

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