Possibly starting online retail store...

Maybe I'm way off base, but I don't think it would be too hard to sell quality MFs and maybe some QDs to people.



Once you finish detailing their car, you can give 'em a pitch extolling the virtues of keeping their cars clean in between washes, what makes one MF better than another etc. I think most people, once they see that you've done a good job would be receptive.



In any event, good luck with whatever avenue you decide to take!
 
Now that I can post again...

I'm going to do it. It sure does add up quick! I just hope I get some money back, at least come out equal. lol I will be giving CGs a try later, probably after he comes up for a car show and I can talk to him in person. I gotta hand it to guys like Patrick, it takes a lot of $ and time to become a supplier. I am only buying in very small amounts for now and its not cheap. It should be fun though, plus if it works out, I can add that I own a business on my next application most likely college. lol I wonder what they would think of that.



Thanks for all the advise and I'll keep you all updated on how its working out.
 
OK, so I got my Optimum stuff, so far I have only done local sales, and now I'm looking into CGs stuff.

My question to you guys is, what CGs stuff should I supply? I dont need a huge variaty of products, just the main things. So far on my list of products to distribute is: Extreme Top Coat Sealant, Pro-detailer, and some air fresheners (will be repackaging into smaller bottles, 2oz). What else if any more should I distribute? And what do you think would be reasonable resale on these (16oz)?

Thanks
 
Thanks Gary, I'm thinking of just carrying CGs Extreme Top Coat Sealant, CGs Pro Detailer, Air fresheners, Optimum Protectant Plus, 16x16 terry weave MF, and WW drying MF.

What do you guys think? Any advise, opinions, etc are apreciated.

Thanks
 
I would say that you should not do it. Most manufacturers make their retailers sell their products at a set price. Lowballing them will just tick off the manufactures and other retailers in my opinion.
 
kgb said:
I would say that you should not do it. Most manufacturers make their retailers sell their products at a set price. Lowballing them will just tick off the manufactures and other retailers in my opinion.
Click to expand...



A mfg can not tell resellers how much they have to sell the product for. They cannot make them sell at a fixed prive. There's always a "suggested retail price" and resellers know that if they start selling below others will just start coming down with their prices. It becomes a price war and isn't good for business.



MFGs can just choose not to use that company as a reseller if they find them selling too low and affecting other resellers that have been w/ them for a long time. It is up to a reseller to determine what margins they want on a product.



eBay is a great example. Take a look at the prices for car audio equipment/acc. They sell way below MSRP because these "resellers" are wiling to just take $10 profit on the products. Of course most of the time you don't get warranty w/ the mfg but who cares when you're paying 50% of retail.
 
FrizzleFry said:
A mfg can not tell resellers how much they have to sell the product for. They cannot make them sell at a fixed prive. There's always a "suggested retail price" and resellers know that if they start selling below others will just start coming down with their prices. It becomes a price war and isn't good for business.

MFGs can just choose not to use that company as a reseller if they find them selling too low and affecting other resellers that have been w/ them for a long time. It is up to a reseller to determine what margins they want on a product.

eBay is a great example. Take a look at the prices for car audio equipment/acc. They sell way below MSRP because these "resellers" are wiling to just take $10 profit on the products. Of course most of the time you don't get warranty w/ the mfg but who cares when you're paying 50% of retail.
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What? They sure can and they do! As a metter of fact they do this all of the time. And Ebay is not a good place to look for info. Most of the people selling on Ebay are not resellers as far as the manufacturers are concerned and that is why you get no warranty or reciepts.
 
I'm not saying look to eBay for info... it was an example as to how prices can fluctuate depending on how much a reseller is willing to take.



And are you serious about the price fixing? In that case I'm sure the FTC would love to know about their business practices. Vertical price fixing is ILLEGAL. That's an anti-trust violation plain and simple. Any agreement to sell at a min retail price is illegal. A manufacturer can institute a policy setting a certain level they want the retail prices to sell for (MSRP) and can decide if they only want to sell to those that follow this policy.
 
FrizzleFry said:
I'm not saying look to eBay for info... it was an example as to how prices can fluctuate depending on how much a reseller is willing to take.

And are you serious about the price fixing? In that case I'm sure the FTC would love to know about their business practices. Vertical price fixing is ILLEGAL. That's an anti-trust violation plain and simple. Any agreement to sell at a min retail price is illegal. A manufacturer can institute a policy setting a certain level they want the retail prices to sell for (MSRP) and can decide if they only want to sell to those that follow this policy.
Click to expand...

Many many manufactures say in their paper work to resellers that you must sell it at no less than a stated amount. If memory serves me right Cyclo was one of them.
 
Well... FTC states that is an illegal business practice. Competition is used to balance prices out (what a company is willing to take in as profit vs what consumers are willing to pay). Got a link to that info? I'm sure a quick phone call to any of these companies that tell their resellers they HAVE TO sell at a stated amount about their business practices will change things. But like I stated, a MFG has some protection in this matter in that they can just choose not to supply a particular reseller.



That's where MSRP comes in... it was a way for a mfg to institute a policy of where they would like the retail price of the product to be. If I have some time I'll search the FTC's site and provide evidence as such.
 
I know what you guys are talking about and ya, FrizzleFry is right (learned that the other day in business law class ;) ). I was mainly thinking lower prices to start and gain business, much like a grand opening sale most companies have. I wouldn't really be able to afford to sell too cheap, because my discount isn't as good as, say autogeek's. If I sell at their prices for OCW I dont really make much $ and it's barely worth it. That is one reason I think CGs might be a better way, because huge resalers dont carry them, so my competition is so much. Do you guys think $15 for OCW and $12 for OCP+ is reasonable? Seems like that is about the going rate for them, but my problem would be getting customers, if I sell for the same price as others, then why buy from me? I might just sell the little stock of OCW and OCP+ at close to my cost and just start over with CGs.

What do you guys think?

Thanks
 
your competition is also the accessibility and availability of other products in retail locations. Brand name influences and such. Price should be the least of your concerns as the determining factors for customers in choosing/using a product is based on the following order:



1) Brand Recognition

2) Prior use and experience

3) Price



As long as you can get it in their hands and have them try it out or what not, then you'll be more likely to "convert" them to your product.



People will buy from you if you're closer. If the shipping time and cost is not worth it for them then they'll buy from someone else. Also make sure you're making enough. Do your numbers carefully and figure out your gross and net profits and your associated costs, etc. Proper planning will lead to greater success. :) Good luck.
 
Pont that is why you need to get yourself exposed in the world of car product consumers. I try to buy from Excel Detail as much as possible because I know Patrick does good business and he's probably the only online business willing to charge true shipping costs, a big issue for me.



It doesn't hurt that he gives candy with each shipment, either :D
 
OK, so this is what I'll do, go to local car shows, car club meets, etc and get myself exposed to locals first, and start a website so they can buy from that in the future. Then hope the word passes and see how much more I get. I decided for sure on CGs stuff only and my MF. I'll probably just start with the basics, wax, sealant, detail spray, car wash and air fresheners (cause I can get more because they are cheaper). As far as online resale, looks like competitive, not low ball pricing, actual cost shipment, and good customer service will get me customers that will continue to come back. Well, lets see how long it takes me to get this thing up and going! Thanks for all the advise guys!!
 
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