Quote:
Originally Posted by hundredone
Hehe,
Market - I will start by selling through website online. Eventually i would like to contact shops in vancouver to show them my products. If shops like my product why would they not want to sell it? They are going to get wholesale prices and can make a good profit. The shops would sell for retail price which is same as website price. What do you mean competition. Do you mean customers will go in store, see the jewelry and instead of buying from store, shop online and pay extra for shipping and wait time? I was thinking to make the online store a little more expensive like $20-$25 more. Shops in vancouver would have better prices and so local customers will shop there?
Cost - Many of my friends are accountants, i will talk to them about the cost part and gather all the info and numbers.
Thanks
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As I said before, think again about your business model. I don't think you have narrowed down on your options.
The reason I suggested against direct+wholesale is that unless you are like Apple who has a strict control on pricing, your website (direct) would compete head on with the retailers (wholesale). Say your brand is "hundredone" jewelry and you give $20 profit to the retailer. It then undercut your price by offering at $10 less (so making $10 instead of 20 to move volume), does your site lower the price to stay competitive or you just give away that market? What if they offer it on their website as well? When consumer looks up on internet about hundredone jewelry, they see your site is more expensive than others, so they shop elsewhere.
The other model would be you more or less *cosign* your product with jewelry shops, so they take certain amount of money on each sale. But floor space comes at a premium. How much exactly are you able to make after that? Would the website still make sense at all in this case? Are you able to handle the volume by maintaining the same level of quality... etc.
There are tons of questions that you have yet found answer for your venture. You could say that you'd play by ear, but very few businesses can succeed like that.