General Business Forum Brought to you by Salesforce, time to spill the beans.

Discussion in 'General Business Forum' started by m4ttch4tt, Jan 31, 2011.

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  1. popunder

    popunder UKBF Enthusiast Free Member

    667 171
    Good luck Matt, I don't think this'll work out in its current form but if you keep exploring similar ideas and aren't afraid to wind back a bit and honestly re-evaluate your plans you may find a workable business coming out of it.

    Has certainly go me thinking anyway, something along the lines of Swoopo meets Twitter meets mobile payments meets Groupon... brain gives up at this point though!
    Posted: Feb 7, 2011 By: popunder Member since: Mar 5, 2008
  2. Mustaka

    Mustaka UKBF Newcomer Free Member

    332 161
    I have no intention of every competeing on something like this. I said I figured out a way that mathmatically it would work but there are business concepts that simply fall into the "two hard, to many barriers" bracket.

    Who said.....

    "Any old person can create a complex solution to a complex problem. The genius is the person who finds the simple solution to the same problem."

    .....Oh wait. That was me :)
    Posted: Feb 7, 2011 By: Mustaka Member since: Feb 3, 2009
  3. Drpepper

    Drpepper Banned

    1,295 430
    That is so true, how many people come on here asking, or giving, advice and overcomplicating the whole solution. Far to often the simple solution is dismissed because is so easy it can't possibly work.
    Last edited: Feb 7, 2011
    Posted: Feb 7, 2011 By: Drpepper Member since: Oct 4, 2010
  4. m4ttch4tt

    m4ttch4tt UKBF Regular Free Member

    230 15
    I am currently reviewing some parts of the business model to factor in the transactional costs that I truthfully didnt account for :( my bad, I have found a few ways around this issue and will tap my calculator at break neck speeds to apply these new costs.
    I'm certainly not afraid of back-tracking or even reverting back the drawing board and re-writing the entire concept as I have literally had to do this a few times already, after all learning from your own mistakes is by far the best way to learn.
    Although there have been some pointless pages to this thread I am grateful that anyone actually paid attention, you have opened my eyes to new scenarios and barriers that I may come across... But none of which will be allowed to halt my progress, there is ALWAYS a work around if you try hard enough.

    Thank you people.
    I shall return with news... Good or Bad!
    Good luck in all you ventures.
    Posted: Feb 7, 2011 By: m4ttch4tt Member since: Nov 14, 2010
  5. mike.davis

    mike.davis UKBF Newcomer Free Member

    749 156
    Why don't you take all this enthusiasm and passion you have and put it into a different idea.

    Seriously, people have pointed out so many flaws It's not worth it, It will cost you nothing to move onto a new idea, and maybe with all that enthusiasm you can make it work.
    Posted: Feb 7, 2011 By: mike.davis Member since: Jul 28, 2010
  6. MikeJ

    MikeJ UKBF Big Shot Free Member

    5,769 1,673
    Narissa Gliders, for example?
    Posted: Feb 7, 2011 By: MikeJ Member since: Jan 15, 2008
  7. astutiumRob

    astutiumRob UKBF Ace Full Member - Verified Business

    1,314 241
    Puuting aside any legality over the process/concept...

    You're assuming that it would be "new" money on each item, not the same money over-and-over as they didnt "win" the first one. 50% of 70m ? 1% maybe !

    And all you (potentially) get is the few days interest between receieving the money from the "bidder" and paying the suppliers for the items - so again *assuming* you do all the business on day-1 and meet your 50% target, you'll get a few days interest @ 0.5%/PA on 35m = about £400/day - not exactly a lot to cover the bank fees, chargebacks, service running costs etc

    It really does come across as a penny auction with a bit of pyramid/ponzi scamming thrown in to overcomplicate things after attending too many "courses" on investing OPM :p
    Posted: Feb 7, 2011 By: astutiumRob Member since: May 5, 2004
  8. FreelanceSoftwareDeveloper

    FreelanceSoftwareDeveloper UKBF Ace Free Member

    1,561 348
    I haven't bothered to read all 43 pages and i'm surprised the concept is still being compared to madbid, but this is my understanding, maybe I am wrong?

    There is a product for sale, but it's effectively not available until an unknown time in the future. Therefore if you want an xbox for £100 you need to put your money in the pot (Escrow) to secure one as there is no fixed end time.

    You are not paying for bids and if you don't get an xbox you get a full refund.

    Now what your relying on is a lot of people putting money into your account then when you have made a profit on the interest you process the sale and they all get an xbox.

    It doesn't matter if they change there mind and withdraw their money back as you are simply waiting until you have made your profit, if it's not working you can just refund the customers and nothing is lost. All products are dropshipped at cost price so there is no risk.

    It's basically a group purchasing site but everyone puts their money in and you decide if/when the sale is made rather than as soon as 100 people put the money in it ends.

    Biggest problem, getting enough people onto the site who are prepared to commit without a seriously good discount. If are selling an xbox at £199 I don't think you can source them for £100, if it turns out to be £170 is that really worth hassle for the customer or will they just spend £30 more and get it tomorrow from Play. If I get disappointed on the first deal as not enough people join to give you a profit will I really keep trying, I don't think so.

    Not sure on the maths either. I had £10k in an ISA and was getting £500/year interest. On those figures selling £100 items you would make £1.50/day (if you could get anywhere near that interest rate) per 100 customers before considering your running costs, customer service, returns, processing fees, website etc
    Last edited: Feb 7, 2011
    Posted: Feb 7, 2011 By: FreelanceSoftwareDeveloper Member since: Sep 14, 2009
  9. LicensedToTrade

    LicensedToTrade UKBF Legend Free Member

    6,330 2,143
    Channel's comments are in line with my own thinking. The two things that stop this idea dead in the water (for the time being) are interest rates and a lack of understanding of the kind of margins involved in consumer electronics.

    Now, had you said you wanted to do this with sofas instead of consumer electronics then that is a very difficult kettle of fish as the backdrops between manufacturer, distributor, wholesaler and retailer and enormous.
    Posted: Feb 7, 2011 By: LicensedToTrade Member since: Nov 7, 2009
  10. m4ttch4tt

    m4ttch4tt UKBF Regular Free Member

    230 15
    True. Channels comments are valid! I just feel that he hasn't grasped the full concept, but along the right lines.

    I think one thing I have definitely failed to mention though is that I am not limiting myself to just consumer electronics (purely just examples as they are high demand products) I do have a vast product inventory ranging from consumer electronics through jewellery, branded clothing, tools, musical instruments and quite a few more and with the Internet being so vast and also having so many comparison sites as well as brilliant search engines with sorting through relevance and price (lowest to highest) I aim to reach as many different audiences that I can, over time. Currently though many of the products have to be small for convenience of storage as I do not as of yet have a warehouse.
    Home furniture would be good to get into somewhere down the line but from the very start I need a very large amount of traffic so a niche sofa approach would see me definately crash and burn within about a week.
    Posted: Feb 8, 2011 By: m4ttch4tt Member since: Nov 14, 2010
  11. m4ttch4tt

    m4ttch4tt UKBF Regular Free Member

    230 15
    Sheer volume... If you can offer the lowest price online consistently day in, day out and also be trustworthy volume of traffic alone will see magnificent turnovers.

    Sorry for the delay.
    Posted: Jan 24, 2012 By: m4ttch4tt Member since: Nov 14, 2010
  12. m4ttch4tt

    m4ttch4tt UKBF Regular Free Member

    230 15
    If you really understand what I am doing you would see instantaneously that it is genius. It is so simple it's stupid.... What could be easier than this;


    A company saves up all the money that their customers give them in a higher interest AER account, they collect the earnings on interest and repeat...

    Last edited: Jan 24, 2012
    Posted: Jan 24, 2012 By: m4ttch4tt Member since: Nov 14, 2010
  13. bluelight

    bluelight UKBF Regular Free Member

    204 22
    I must say with all of the views this thread has had, I am tempted to put an advert on it for my website lol it has gotten more traffic than my site has had in 3 years ;)

    I just thought I would try and lighten things up a little...... after reading to page 33 and seeing the tempers flaring etc etc.

    I can see there are some flaws and some comparisons with other 'auction'/'selling sites' and there is a lot more work/thought needed to establish the viability from both a customers and partners viewpoint in the concept!

    To the OP - 'It was never going to be easy was it'?
    Posted: Jan 24, 2012 By: bluelight Member since: Nov 24, 2008
  14. Mustaka

    Mustaka UKBF Newcomer Free Member

    332 161
    Oh Please let this thread die!!!!
    Posted: Jan 25, 2012 By: Mustaka Member since: Feb 3, 2009
  15. smo

    smo UKBF Ace Free Member

    2,094 336
    I've not read all 44 pages....I cant be bothered to waste my time reading what I'm sure is the OP saying it works and i'll be a millionaire, and the UKBF public saying you are off your rocker, its scammy, it already exists and no sain person is going to pay to bid on an item they wont win.

    It wont work, why would someone pay £99 to bid on a £100 item not to win....crackers.
    Posted: Jan 25, 2012 By: smo Member since: Apr 3, 2010
  16. Dunny

    Dunny UKBF Newcomer Free Member

    144 31
    Is this the oldest and longest UKBF thread ever?? It's almost a year old and the OP had been working on this concept for a year when the thread was started!! I hadnt been on here for months until recently and it's still going!!!
    Posted: Jan 25, 2012 By: Dunny Member since: Jan 28, 2011
  17. kulture

    kulture UKBF Legend Staff Member

    8,088 2,229
    There is simply no point in OFFERING low prices, you have to DELIVER the products. Volume of traffic does not bring in "magnificent" turnovers, and in any case it is profit that counts and not turnover.

    Give up this crazy idea.
    Posted: Jan 26, 2012 By: kulture Member since: Aug 11, 2007
  18. SGPS

    SGPS UKBF Regular Free Member

    168 31
    To be honest i got bored after the 8th page

    Its simple.

    1+2+4+5+6+7+8+9+10+11+12+13+14+15++16+17+18+19+20+21+22+23+24+25+26+27+28+29+30+31+32+34+35+36+37+38+39+40+41+42+43+44+45... got bored and couldnt be bothered to carry on. All the above acounts to the £5050 he mentioned in his first post (i think).

    The reason the op is retarded is because he has stated he will disclose the reserve price of £100.

    Its the same as madbid the only diference is that you dont pay for your bids.

    Let say the cost of the Xbox is £190. That would require 19 accumalitve bids of £1 to cover the cost.

    i.e 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19=£190

    The only way this would work is to have high volumes of bidders ready and waiting and set a desired time and only allowed 1 bid each.

    So lets set the clock at 2minutes. You would then hope to get 20 individual bidders in the 2minute slot to make a profit.

    So the bidder would place his bid, if that individual bid hasnt been taken in the accumlative order he is now the highest bidder. If that bid is taken whilst he presses the button he would be informed to raise his bid to the next accumalitve figure.

    See the problem here is that you would have to have bidders that would be prepared to loose at least £19 for you to break even.

    Why wouldnt you just use ebay and cross your little fingers that you win an xbox for £19, if you dont win, you dont loose anything.

    ...or you could just use Madbid and loose just 12p on your unique bid. Yes Madbid makes a **** load on an auction and is stacked in their favour, because they make 12p on every penny bid + the final value fee, but the individual only pays 12p for the bid.

    Ok... So in theory your bidder has better chance of winning, the statistics are more realistic but would somebody be prepared to loose at least £19 for nothing? NO!

    Its flawed, you will get some retards that are prepared to bid and loose £19, but in the millions? Doubt it.

    Plus another thing to consider is you could never really "auction" anything that costs more £200. Lets say you put a ford ka on, people wouldnt be prepared to loose £100's of pounds on a bid.

    Or would they?? I doubt it
    Posted: Jan 26, 2012 By: SGPS Member since: Jun 15, 2010
  19. SGPS

    SGPS UKBF Regular Free Member

    168 31
    Thinking about it, if there was enough people prepared to loose their individual bids, before the auction started you could confuse the bidders by saying on the page maximum bid say £40. Then it would obviously be dependant on whether the clock runs out you the maximum bid is reached. If the maximum bid is reached you would be quids in. I just can't see people being prepared to loose decent amounts of cash
    Posted: Jan 26, 2012 By: SGPS Member since: Jun 15, 2010
  20. crphillips

    crphillips UKBF Newcomer Free Member

    717 166
    Way over complicated. If we can't understand it after 44 pages then nobody will. Either it's too complicated or your no good at explaining it or both.

    Also googled the site name and nothing........where is it?
    Posted: Jan 26, 2012 By: crphillips Member since: May 1, 2008
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