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GCSurfer 27th April 2007 04:55 PM

New Business Tips
 
I'm looking into opening a online business and ran across a site that caught my attention. First off I'm a member on at least a dozen car and truck forums, custom rides, etc... I've had a everything from a muscle car, lifted truck, now to a more of a show truck ( at least it is to me :D). Anyways I came across a wheel and tire website and he had at least two dozen wheel manufactures on his site and you could click the logo and it would take you straight to the manufacturer. If you wanted to purchase something he said to call him or email him for a price. This is something I've very interested in, but curious how that works...
Does he get the wheels and tires at wholesale price from all of the manufacturers? Do you pay a monthly or annual wholesale dealer fee? Any input would be greatly appreciated. I also tried calling one of the companys and he couldn't tell me much except I couldn't see anything under a certain price. He also faxed me a application. Just hoping I could get some more information off here.
Thanks!

GCSurfer 30th April 2007 12:01 PM

Anyone?

Adstamatic 1st May 2007 02:38 AM

It could work any number of ways. Maybe you should try calling more than just one and ask them about how it works. Perhaps even say you want to operate like the site you have seen.

It's such a specific topic that the only correct answer will come from either the supliers or the website that you saw. Hey, theres an idea, why not ask the website owner...the worst they can do is say 'go away'. (put possibly worded a little differently!)

GCSurfer 7th May 2007 09:49 AM

Quote:

Originally Posted by Adstamatic (Post 42801)
It could work any number of ways. Maybe you should try calling more than just one and ask them about how it works. Perhaps even say you want to operate like the site you have seen.

It's such a specific topic that the only correct answer will come from either the supliers or the website that you saw. Hey, theres an idea, why not ask the website owner...the worst they can do is say 'go away'. (put possibly worded a little differently!)

I will be asking him, just figured I would check here 1st. Thanks

GV001 8th May 2007 08:20 AM

Another idea for you is to list prices from tires fitment centers on your website. This way people dont have to phone 7 different tire fitment guys to get prices. People just log onto your website to get the latest prices on tires for a specific area. You can have the tire fitment centres pay you to have their stock list on your website.

GCSurfer 5th June 2007 08:18 PM

Quote:

Originally Posted by GV001 (Post 43346)
Another idea for you is to list prices from tires fitment centers on your website. This way people dont have to phone 7 different tire fitment guys to get prices. People just log onto your website to get the latest prices on tires for a specific area. You can have the tire fitment centres pay you to have their stock list on your website.

GV001,
How would one start something like that? I've seen sites like that and say I already have a website designer (friend), what would be the next step? Contacting dealers?

spedridr 5th June 2007 11:39 PM

sometimes there is a buy in price you must pay to the manufacture...say $2k. then they give you pricing, where you then mark it up and sell it to your customers. your customer pays you, then you place the order with the vendor, pay them, and they will drop ship it to the customers door. you yourself will never seen the product. if your familiar with the company rubicon express, this is how they operate for their independent dealers.

it depends on the vendor, some vendors you have to buy the products from them then you sell them and you deal with the shipping. hope that helps

GCSurfer 6th June 2007 04:02 PM

Quote:

Originally Posted by spedridr (Post 45458)
sometimes there is a buy in price you must pay to the manufacture...say $2k. then they give you pricing, where you then mark it up and sell it to your customers. your customer pays you, then you place the order with the vendor, pay them, and they will drop ship it to the customers door. you yourself will never seen the product. if your familiar with the company rubicon express, this is how they operate for their independent dealers.

it depends on the vendor, some vendors you have to buy the products from them then you sell them and you deal with the shipping. hope that helps

Yes that helps thanks. I'm still trying to get more info from the dealers but not really getting anywhere. I was told from one manufacturer that their product cannot be sold less then a certain price, part of there agreement. I thought that was intresting, but I wanting to have everything drop shipped rather then have the supplys in stock.
Thanks

Ba1L3yB0y 6th June 2007 04:44 PM

I'm a purchasing manager for a construction company and the larger part of my day is spent negotiating pricing and margins with vendors that are trying to get a peice of our business.

Since I've started this position I've learned a few things about factory direct purchasing as opposed to going through a 2nd or 3rd party vendor. Along the path of purchasing goods you will find the lowest price factory direct, but to get this you have to belly up to minimum order quantities, or contract pricing based on projected ordering, and they won't drop ship other than to your "warehouse", and with any given market that you're in they don't care if they sell to you or to the usual warehouse or storefront vendor.. their peice of the pie stays the same because its their product getting to the enduser who has created the demand in the first place, no matter what channel they use to get it.

Then you get to warehouse vendors who are the next biggest fish in line.. they won't force minimum orders but they will categorize your buying power into "margin levels" to determine how much they will mark your prices up to get the greatest potential profit from even the smallest orders. Chances are they still won't drop ship, but they might on certain order sizes. Depending on how desperate they are, you can shake em down for a better margin now and again, thats where your charm comes into play.

Then there is the third party vendor that keeps minimal inventories, and offers delivery, but has to gouge you on pricing because their cut is over and above the first two. They don't sell a product for profit they sell a convenience for profit, in the traditional way. Find one or several of these guys that doesn't have a website and indirectly "employ" them to fill your website orders, and skim off the top.

Your angle has to be a different kind of convenience, even if that means connecting buyer to supplier and skimming your cut off the top and disguising the cost as "doc fees." Thats the way I see a website like the one you described as being successfully started until your buying power enables you to move up the chain of purchasing smart.

Or maybe thats entirely absurd, I'm just brain storming.

natetarsha 23rd June 2007 12:18 PM

Wow, Ba1L3yB0y really hit the nail on the head with his reply.

So...it seems that to really get that type of business off the ground you really have to spend the time knowing how to answer WIFM (what's in it for me?) for both the manufacturer and your end customer.

Your possibilities are limitless. It could be that you work with a manufacturer who is looking to expand their business into new territory, or you may find local businesses who are looking to build more local clientelle.

Bottomline...to build something like you saw, you must approach it from the angle of what value you provide to that manufacturer AND your end customer.

Just a thought....

Latarsha Lytle, MBA


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