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Improved business model/pricing

Started by Altor, December 12, 2006, 10:25:30 PM

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Altor

I've been thinking a lot about how much markup DS accessory resellers make, and I've had a few ideas.

Has anyone ever been to a costco?  Basically, you have a membership fee, and then from then on, you get things at virtually wholesale price.

I wonder if something similar could be done here.  Or, even, no membership, but just sell things closer to their real manufacturer value.

I already have a reliable source of income, but a little side project wouldn't hurt.  If I opened a store with prices about 2.5% above wholesale, would anyone be interested?  Anyone have any suggestions about how it should be set up?

I mean... for instance, according to the slot 1 supercard thread, it appears they currently sell at approximately 66% above wholesale, unless there's a lot of bogus there.  It says the wholesale price is $29.99, while the recommended dealer price is set at $49.99.

Honestly, that just really goes against my sense of fairness.  I could understand a $10 markup even, although even that would be above what I'd normally expect.  But $20.00, just to put something in an envelope and take it to the post office?  Even $5 seems too high.

I've done this kind of e-business before, and like I said, the markup was generally about 2-5%, depending on how hard something was to find.  Not 66%.

The only thing I can see being a problem is if Romman has set an artificial minimum price.  Like, "We recommend 49.99, but if you go below 44.99, we'll stop sending you stuff,"... that kind of thing.

I already have the cash on hand to put in an order for 100 supercards, or whatever.  I'm just trying to decide whether to bother.  Is there enough demand?  Would it be bad in the long run?  Is it worth the trouble?

sonicwind

I'm interested but that would only be 1/100 which obviously wouldn't do you any good having another 99 supercards sitting around.