| The manufacturing, distribution logistics and sales | | | | receipts for rebates with your personal information |
| business: | | | | that they will probably say they keep confidential and |
| The best thing we learned about business is to | | | | sell off to a company for your name phone and |
| "know a little about a lot." Trying to take in | | | | shipping information. Better yet, they tell you in a |
| everything is just too time consuming. We learned | | | | letter that while transporting all those CONFIDENTIAL |
| you will never be able to know more about the | | | | documents the diskette somehow possibly was lost |
| product or its importance than the consumer already | | | | when it fell out of a bag between the storage facility |
| knows. Remember wanting that special toy when | | | | and being transported to another location. Your |
| you were a kid. You knew all there was to know | | | | money then sits in a bank, making them a mint in |
| about that toy, if it was real or fake, where to get | | | | compounded interest rates for sixty (60) days |
| the real one cheapest. The same concept applies | | | | before they return the rebate. |
| here. | | | | Wait just before the sixty (60) day period for them |
| The Matrix: | | | | to return your money and they send you another |
| Not just a movie, but a grid of distribution. How | | | | letter stating you have ten (10) days to send them |
| products are mass produced in major manufacturers. | | | | the original UPC code from the box that you already |
| The manufacturer designs a prototype. The media | | | | cut and sent. Sounds crazy, watch how the rich get |
| then releases news of their product due for release | | | | richer and the poor stay poor, multiply that for |
| flooding the stock market; the manufacturers start | | | | however many millions of IPODS were sold last year, |
| to rake in the profits before the first one has even | | | | which by the way is the #2 most searched for item |
| been built or sold. Manufacturers then accept bids | | | | on the Internet according to November 2006 |
| from major packaging companies. | | | | statistics from Think about paper clips, if you bought |
| Packaging plants then package the product, figuring | | | | only one (1) box what would it cost? You go to the |
| out how they can best fit it into a box with its 3,000 | | | | local shopping mall and buy from the local stationary |
| screws parts and instructions. Then they build a | | | | shop a box of paper clips, you thought were a great |
| machine to package the product on an assembly line, | | | | price at $2.00 for a box of 100 clips. To find out it |
| which saves them money on labor. Place the MSRP | | | | may have only cost $.35 to package, ship and place |
| on the product; weigh it and size it, fit as many as | | | | that item on the shelf. |
| they can in a cube sized shipping storage unit or | | | | Now think about that as your project is due for |
| truck with pallets and shrink-wrapping. Distribution | | | | review tomorrow. You impulsively buy the clips |
| warehouses then stock the products and sell them | | | | figuring who cares, it's only some change. You buy |
| to licensed dealers, vendors, resellers and retail | | | | the paper clips on your credit card at 9.9% APR. At |
| stores. Distributors also arrange for the logistic | | | | the end of the month you wonder why you can not |
| transportation of that product across the entire | | | | get ahead. |
| United States or world for that matter. From | | | | Consumers are getting smarter and more informed |
| approximately only six (6) locations in the entire | | | | about the products they purchase. |
| nation the best dispersing method is chosen. | | | | The most effective way we found to profit from |
| The "end user", might be a business in the | | | | our consumers was to have a flattened market |
| commercial industry, mid to small business industry or | | | | approach. Putting your business in the center of the |
| the individual home "end user" industry. Once the | | | | circle and sell to all three (3) "vertical industries" |
| product is bought by the "end user", it is now used | | | | instead of one (1) at the cheapest rate price |
| goods, bought by wholesale as used equipment, | | | | regardless of industry. Using a flat percentage rate |
| auctioned or sold at a yard-sale, for a fraction of | | | | for pricing to cover expenses, bank fees and a small |
| what it cost or trash. Whatever product you may | | | | profit. |
| use, or whatever category your business fits into, | | | | Keeping shipping expenses separate from the |
| you are unfortunately a part of the same food chain. | | | | product price and not charging anything extra to |
| The Truth About Consumers: | | | | inflate shipping costs is a growing trend. Shipping is |
| All consumers "end users" buy individual products for | | | | usually about the same cost regardless of company. |
| either commercial business, small business or the | | | | Savvy shoppers will know the difference. This |
| individual home "end user". By comparison shopping, | | | | flattens the "vertical market" into a circle and puts |
| the "end user" searches for a store or business to | | | | your business in the center; your business will have |
| get the better price. What the "end user" does not | | | | the opportunity to make a ton of money. This saves |
| know about the industry is that an easy 30% | | | | you from having to screen each and every product |
| mark-up is on any given product they may purchase | | | | you sell "like a jeweler" to get as much as you can |
| at any given store. Stores may fluctuate 5%, | | | | for that product, trying to think of a good price and |
| depending on volume and time on the floor at which | | | | staying cheap by comparison. That whole process |
| time they offer a huge sale. The consumers fight to | | | | takes time that you could of sold thousands. Your |
| save maybe $5.00 on a $1,000.00 item. They | | | | automation process and accounting is so much |
| probably used more gas and electricity, driving and | | | | simpler. Currently we do not have to charge sales |
| surfing the net to save that $5.00, then to have paid | | | | tax on items that are shipped out of state. That in |
| for it in the first place. Then add shipping, handling | | | | itself is a blessing in disguise for now as I hear that |
| and tax on your already taxed dollar. After you pay | | | | might change soon to a uniform sales tax for all |
| for that great deal, wait for your rebate to come in | | | | states. This in my opinion would not hurt sales |
| the mail after filling out these four (4) different | | | | anyway. |