Discussion in 'Business & Tax Advice' started by Jordy123, Feb 5, 2014.
The biggest hole in your business method, is it myopic view of your business.
Problem, selling on "low price", will only work when you have the cheapest price and the margin will be admittedly small. Competing on price has been proven to be a marginal business method, at best, take a look at Walmart. Would YOU want to work there? Is that the type of business you want to build?
Be better than the lowest price. Pay for and run a few contests(Give away Ipads), have people show off their engines (I.E. post on facebook or where ever.) with your hose clients' products. Don't make it about you (your clamps) boost the value of your clients' products. Be the funnest guy to buy hose clamps from and you can forget about being the cheapest.
Build out your business plan to be about more than just price and you will find greater value and much more fun in your work.
Oh I totally agree with that you are saying, but the manufacture of the performance hose cannot compete against there current suppliers for example:
[Performace Hose Manufacture]-->Sells hose to Ford RS rally team-->Rally team uses the hoses-->Rally team buys clamps from wholesaler because of the cheaper price(Im talking a clamp @ 1.00 beeing sold for 0.30)
Now if I was to approach that rally team and say look I can do them cheaper than your current and also offer this and this I could go 5% cheaper but because 5% would only mean pennies per unit that would not warrant them to switch supplier especially as they have a customer relation with there supplier.
But if it was this.
[Performance hose manufacture]--->Sells hose to RS team--->Sells clamps to fill there garage stock (included clamps non-related to the hose they purchased)
Now that would be idea because a) its sales I wouldn't be able to get, b) it gives the hose manufacture the extra edge over the competition, c) resulting in more sales
Me and the hose manufacture will be working very close and run promotions etc etc and with the major increase in sales the hose clamp manufacture will see the increase and we can use that as a tool to get better prices in the future.
Now this is just for that one industry and one hose manufacture.
I intent the do some heavy SEO related the hose clamps etc etc, get top spot in google for terms for wholesale, bulk, trade etc etc.
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