New On-line business idea

[creativ74]

Hi,

This is probably my second post in this forum, and I feel that I may get some really useful inputs to my new business idea. Below, I will paste a text taken from my post of the same topic in another business forum to avoid having to rewrite the whole thing again:

The idea:

" I have come up with an idea that really needs some useful inputs and feedbacks. The idea is launching a website that act as an online club for bargain-hunting buyers. The annual membership fee is £12 a year (£1 a month), the maximum number of members is 1000 members. This website can provide a great place for those advertisers who would like to make promotional offers but aimed at certain number of people rather offering the prmotional or discounted offers to the mass. Also, the members can request a special offers on any item or services. the website displays members requests, so, suppliers and providers of products and services can log in to the website and check out what is in need, and can provide many offers, promotions, deals and clearances..

Let me give an example: say that the stats section of the website shows that there are 560 members requesting playstation 3 at a price of £250
while it's retail price is around £280, some provider may want to get quick cash but with smaller profit margins by offering these members the requested price or reasonably near it.

It's a new concept in getting discounts and offers differs from the common discount cards of schemes ..

- Do you think it's good/interesting idea ?
- Is the service description clear ?
- What do you think about the suggested membership fee ?
- How appealing this service in your opinions ?
- Any interesting feedback is more than welcome


Best regards ,,,

 

[sanjiv]

Limits your turnover to £12k per year which isn't brilliant. Should be no limit on number of members.

Seems like a good idea but surely everyone would just say Playstation 3 for 1p or something stupid. Would it really work? or Would you set that price and get people to agree to buy it if it were available at that price?

Membership fee should only be charged once the person gets a dicount (ie if RRP of a Playstationn 3 is £280 and you get it for £250, then the members pay £10 from that but they only pay it once). Basically they pay you a membership fee of £10 per year but only as and when they save that £10.

Also people would have to wait for the price to come down. How would you make retailers/wholesales aware of this? Would you ever just go and buy them from the wholesaler so you are making a profit on it cos that would be good if you could.

Like the idea, needs a bit of work though.

 

[TheWebDesigner]

Sounds good
When you launch I'll take an account.

If you need help and advice with setup drop me a mail

Al

 

[JamieM]

Limits your turnover to £12k per year which isn't brilliant. Should be no limit on number of members.

Seems like a good idea but surely everyone would just say Playstation 3 for 1p or something stupid. Would it really work? or Would you set that price and get people to agree to buy it if it were available at that price?

Membership fee should only be charged once the person gets a dicount (ie if RRP of a Playstationn 3 is £280 and you get it for £250, then the members pay £10 from that but they only pay it once). Basically they pay you a membership fee of £10 per year but only as and when they save that £10.

Also people would have to wait for the price to come down. How would you make retailers/wholesales aware of this? Would you ever just go and buy them from the wholesaler so you are making a profit on it cos that would be good if you could.

I guess he is going to generate income from suppliers.

The problem I see is that with only 1,000 members you won't get sufficient numbers all looking for the same thing at the same time. For example there is no chance you will get over 50% of your members wanting a PS3 at the same time. What if there is only 3? Makes it a completely different situation for the supplier.

If you did get something where 560 members wanted something, what happens if some people pull out?

 

[sanjiv]

I guess he is going to generate income from suppliers.

The problem I see is that with only 1,000 members you won't get sufficient numbers all looking for the same thing at the same time. For example there is no chance you will get over 50% of your members wanting a PS3 at the same time. What if there is only 3? Makes it a completely different situation for the supplier.

If you did get something where 560 members wanted something, what happens if some people pull out?

Don't think suppliers would pay because their margins are usually very low anyway.

 

[creativ74]

Thanks for the feedbacks, I like the suggestion of only getting paid after the real saving is achieved, and it's more attractice as well for new comers. Limiting the number of members make it compact, and make the club a powerful base of eager buyers, the return from membership could be limited, but other option could be available as things rolls in, like adverts, joint ventures etc...

thanks for the support and I hope it's something that is really usefuk and WORKS

 

[sanjiv]

I don't think ads is really somewhere you want to go. Puts people off. Best way to make money from the people who will be using the site.

Have you seen quidco.com. They are similar in that they do cashback. The method of taking money is what they use. £5 per year as and when you get it.

It would be good if you got suppliers advertising on there actually. We will sell 1000 PS3's for £250 each or whatever.

Good luck

 

[GillespieBS]

This is quite a common trend which is already appearing. I can't recall the website but someone is already doing this with the desirable products such as playstations, plasmas. The Sunday Times Money section (two weekends ago) had an article about saving money online. Headline was "Team up to net bargains".

 

[creativ74]

I don't aim to make any profit from the suppliers side in terms of making mariginal profit from discounts, and the playstation 3 was just an example. The idea is compiling a club or a list of people who are looking for good deals, offers, and special prices. Members can express their demands, but also, special deals can be made available exclusively for the club members by suplliers.. Businesses like :

• Businesses that need to clear certain products.
• Businesses that need to make some limited promotional offers in retun for publicity, reviews and feedbacks on their products and services.
• Businesses who have limited stocks of a product or limited spaces in a service.

keep the thoughts in lads

 

[creativ74]

GillespieBS, really ?!! that makes me feel better mate , so, at least I'm not mad and seeing things or may Windows 7 was actually my idea ... the idea is still raw though and there is some good room for improvements..

 

[cinddy]

Great idea to my end i think now you should focus on competitors. Try to give your full time to competitor analyses and definitely you will see good result.

 

[GillespieBS]

I found the website I was referring to. It uses the same concept but seems to sell experience days and restaurants in your local area.

www.groupola.com

 

[creativ74]

I'm really grateful for all your valuable feedbacks lads,,, many thanks for the website Gilles. I'm dedicating this week for the research and I hope to come up with some encouraging findings so that I launch the idea as soon as possible, keep the thoughts coming as nothing better than having the views from various angles

 

[shopintegrator]

I remember Let's Buy It launching many years ago in the dot com boom with this idea, people buying in bulk by collectively purchasing the same item. There was a big marketing campaign that went with it as well, TV, Internet adverts.

http://www.letsbuyit.co.uk

Looking at their site today, it seems to be more of a price comparison site now? This could be a bad omen for what you are planning to do that they tried.

 

[Bes]

There was a site called letsbuyit.com (I think) that tried this a few years ago... Didn't work AFAIK.

The way I see it, is that people want things now... Not waiting for a month to get the price down by a tenner on a £250 item... I know I wouldn't wait.

 

[liams7]

I dont think its commercially viable. I dont think it would work. The best idea like this is quidco but to be honest its not anything like this but it is amazing.

 

[creativ74]

I'm glad to receive different views so that I can weigh up things in a much better way, I would like to take this ooportunity to that every poster on this thread, I have analysing things and I should reach my decision very soon hopefully,, but, please those useful opinions coming, positives and negatives comments are all most welcome, as I'm intending to make this something eally different ... and I'm working on How to do that


best regards