How to Ruin a Perfectly Good Product Market

Written by Chris Malta


Continued from page 1
Now, along comes Chopper Jane, also searching forrepparttar lowest priced competitor. She finds that it's Chopper Joe, and SHE starts sellingrepparttar 116933 VCR for $78.88. Pretty soon, this turns into a feeding frenzy that would scare a Great White Shark. The result of all this? The market price ofrepparttar 116934 VCR (the price that it's generally available for sale at) plummets fromrepparttar 116935 MSRP of $149 allrepparttar 116936 way down to about $78. Suddenlyrepparttar 116937 original genius, Chopper Bob, finds himself undercut at every turn, and everybody is sellingrepparttar 116938 VCR dirt-cheap. Now that there is so much competition at that same price level, nobody is making any money. As long as you're dealing with a genuine distributor, likerepparttar 116939 ones we list, you will always find a good margin between Wholesale and MSRP. It'srepparttar 116940 fact that some people drive downrepparttar 116941 market prices on certain products that causesrepparttar 116942 problem. The manufacturer andrepparttar 116943 wholesale distributors ofrepparttar 116944 VCR don't care about this. They are still sellingrepparttar 116945 VCR at their wholesale price of $69, and now a LOT of them are being sold, because of allrepparttar 116946 price-choppers who are killingrepparttar 116947 market price ofrepparttar 116948 VCR, and their own businesses along with it. In a few months,repparttar 116949 manufacturer will changerepparttar 116950 color ofrepparttar 116951 VCR, slap a new model number on it, andrepparttar 116952 whole cycle will start all over again. Please don't makerepparttar 116953 mistake of thinking that YOU can't sell that VCR for a higher price than Chopper Bob. You can. What you have to realize is this: The Internet is a very big place. Not everyone is going to FIND Chopper Bob's site. In fact,repparttar 116954 vast majority of shoppers WON'T find it. Most shoppers are very leery of sites like Chopper Bob's. People who get themselves involved in pricing wars tend to spend all of their time being mad at their competition, and to forget about customer service. You and I both know that we have paid a little more to purchase a product at a store we trust, rather than just going forrepparttar 116955 absolute rock-bottom price. Thankfully, I see this type of situation mostly in just one area right now...consumer electronics. There are hundreds of thousands of other products that can be sold at very good profit margins without running into Chopper Bob and his buddies. However, that does not mean that you can't sell consumer electronics. You can sell anything you want to, no matter whatrepparttar 116956 competition's prices. Sales is a bit of an art form. If selling something were simply a matter ofrepparttar 116957 absolute lowest prices, Wal-Mart would berepparttar 116958 only store onrepparttar 116959 face ofrepparttar 116960 Earth. Without going into too much detail, sales is a mixture of choosingrepparttar 116961 right product, or combination of products, for your web site. It's presenting a clean, attractive, focused site. It's givingrepparttar 116962 customer some little value-added bonus at your site. It's providingrepparttar 116963 absolute best customer service that you can. All these things help a customer to trust you, and when they trust you they are willing to buy from you, even if in some cases, some of your prices are a bit more than they find on other sites. We never sellrepparttar 116964 products on our Ecommerce sites atrepparttar 116965 lowest price, and we do just fine. If you feel that you must Chop something, Chop your customer service response time. Chop a few kilobytes off your graphics, so your pages will load faster. Choprepparttar 116966 “dead wood” out of your site by getting rid of products that are overexposed onrepparttar 116967 ‘Net. Leaverepparttar 116968 price chopping to Bob and his buddies…they’re only hurting themselves, not you. Chris Malta WorldWide Brands, Inc. For more information, visit http://www.YouCanDropship.com

Chris Malta is a Microsoft Certified Systems Engineer. He has worked with computer Systems for 18 years. He's been involved in eCommerce systems, networking and site design for more than 6 years. He developed The Drop Ship Source Directory, and he and his partners at Worldwide Brands, Inc., publish the Directory and run eCommerce sites of their own using Drop Shipping as their only business method.


The Business End of an Internet Business

Written by Chris Malta


Continued from page 1
3.) Obtain a Resale Certificate In almost every State you are required to have a Tax Resale Certificate (Tax ID Number). In Florida, we can get a Resale Certificate in about 20 minutes for $5. We must again show our Business Entity papers. This is done atrepparttar local State Tax Office. When you buy from a wholesale supplier, you will be asked to supply them with a copy of this certificate. They use it as proof torepparttar 116932 IRS that they are not required to charge you tax onrepparttar 116933 products they sell you at wholesale. 4.) Open a Business Bank Account If you’re going to do business, you must have a business bank account. You’ll need your Business Entity papers, your EIN and your County Business License, (if required). Here, we can open a business account for a deposit of $50 to $100. Almost all banks offer business accounts. 5.) Open a Merchant Account The last thing you need is a Merchant Account. You’ll need everything you obtained inrepparttar 116934 five steps above for this one. (Unlessrepparttar 116935 County Business License is not required in your State). This isrepparttar 116936 thing that allows you to accept credit cards from your online customers. Without this, you'll get nowhere. Online buyers are instant gratification junkies. They want it NOW! If they have to mail you a check, they'll go somewhere else and buy. Merchant accounts used to cost a thousand dollars and more to set up. They've come down a LOT. We just opened a new one for a setup fee of $150. The Merchant Account will collect funds from your customers’ credit cards, and deposit those funds in your business account. The Merchant Bank will charge you about 2.2% ofrepparttar 116937 amount you charge your customer’s credit card, plus about 30 cents per transaction. Your Merchant Banker will help you to incorporate your Merchant Account into your Internet store software. Well, there it is. That’srepparttar 116938 business end of an Internet business. Sound complicated? It isn’t, really. The hard part is waiting for one thing before you can obtainrepparttar 116939 next! As I said above, these are just guidelines. If you have questions, please consult a professional. Chris Malta WorldWide Brands, Inc. For more information, visit http://www.YouCanDropship.com

Chris Malta is a Microsoft Certified Systems Engineer. He has worked with computer Systems for 18 years. He's been involved in eCommerce systems, networking and site design for more than 6 years. He's taught college-level computer courses in Western NY. He developed The Drop Ship Source Directory, and he and his partners at Worldwide Brands, Inc., publish the Directory and run eCommerce sites of their own using Drop Shipping as their only business method.


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