Friday, April 29, 2005

A Business Is Born...

...well kind of. In doing my latest marketing group project (see related entry below) I stumbled across something very interesting. After sharing my findings with my roomate Jeff, we concluded that beyond the project, there is actually a good amount of money to be made. Jeff and I started to look at some possible numbers, and ideas, then sent my marketing teacher an email with our idea. Per Professor Thompson's email, "You are an ace. What a great idea." It went on to say how we should come up with a business model, run a few tests in the market, etc.
After sending out a few "feeler" emails to companies, Jeff and I are ready to move forward. R & J Enterprises is born. Catchy name, huh :)
Basically, we are brokers of surplus commodities, mainly in America, but there also seems to be a big import/export market also (which we will explore when the time is right). There is a very large market of companies wanting to get rid of their excess, and others wanting the excess. And by excess, I dont mean a few extra shirts laying around, we are talking about in the thousands, and above. Here is where Jeff and I come in. We arrange the transaction, and the drop-shipment location. The buyer will send us their money, we will then send the money to the seller (minus our expenses and fees). It is amazing how companies will pay people to do a little research for them, which in its rawest form is what we are doing.
This is the very simple version of our plan, but there is a light at the end of the rainbow, and the point to our endeavor. In one of our test runs (something we will probably follow through with at a later date when more details are ironed out) we located a company wanting overstock/excess CD's. They will probably be redistributing these to retail stores in either America or overseas, or putting them up on eBay, etc. When we asked for details on their wants they basically replied that they take all titles and genres, and if the price is right, they will take it by the truckload. Here is where it gets fun for us. We located a shipper who will ship 200,ooo CD's (the equivilent of a big rig load), for $56,000. After doing some research on how much the buyer will mark up their CD's, we should be able to get a total of around $66,000+ from them. We will then forward $56,000 to the shipper, and keep our cut of the top. The shipment will be directly forwarded to the buyer, so we never take title, and boom....a great business transaction that can be repeated an unlimited amount of times with an unlimited amount of buyers and sellers of anything and everything overstock/wholesale/surplus.
Obviously we are still in the planning stage, but the more we are looking into this, the better it looks for the future. This is definitely something that if done right can expand globally over the coarse of a few years, we can open up a web-page...well, you see where I am going with this. And, another great thing about it is, there is very little start up capital needed. Once we conduct a few transcations, then we can set up a different phone line, get a fax machine, etc. But until then the internet, our cell phones, and Kinko's will do the trick. Hopefully after some good market research and planning, this will be something we will be able to follow through with. It definitely has its potential, it just takes time. And with finals coming up, we might have to temporarily put this on hold for a week or so.


Needless to say my book has been put on hold for a little bit....but in no way have I forgotten about it.

31 Comments:

At 4:02 PM, Blogger Lindsay said...

I have on clue what's going on with that considering I've never taken a business class, but can I be the secretary who wears short skirts and waters the flowers? Thanks. (Don't forget my Spanish minor, it'll help)

 
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