Big Cliff Posted January 4, 2012 Report Posted January 4, 2012 Here is my thinking, might need a little modification but it's a place to start. We are a group of anglers and hunters for the most part and many of us shop the sales on products. What if we were to start a co-op and start to contact manufacturers directly through that co-op. Here is an example; if I want to buy Coleman propane cylinders I have to shop the sales or end up paying full retail price. Now we all know that the retailer is not paying anything close to what they sell it to us for and Coleman wouldn't give us a deal as an individual on those cylinders but what if we had an order for 100, 1000, "10,000"? (that is only about 1.5 cylinders for every person on this board) do you think they would talk to us then? The same holds true for many products and as a group we could all work together to help each other. We have a wonderful wealth of knowledge available on this board, people with strong business, sales, marketing and customer service back grounds, web design and so much more. I already know people that could/would be very happy to act as distribution centers in both Ontario and Quebec. Now, I would propose that it get run as a non profit type of thing (naturally we couldn't sell everything at cost as we would have some overhead to cover but we could do a really good job of saving us all a lot of money with any profits made after costs were covered going back to the members). The primary focus would be on North American Manufactured products but not limited too or excluding any others. This could also be extended to many other areas, Lodges, fishing charters, baits and tackle, the list is endless and I have a lot of very good contacts in the outdoors markets that I know would be more than happy to deal with us. So, any thoughts, ideas (good or bad) would be appreciated!
Rod Caster Posted January 4, 2012 Report Posted January 4, 2012 I really like the idea of using our collaborative powers towards lodges/charters... "OFC approved" lodges that offer a discount in exchange for clientel off this board. On the other hand, as a group we can't seem to agree on much so it might be a hard sell to get people interested specific products. Either way, this seems like a worthwhile initiative, Cliff.
Gerritt Posted January 4, 2012 Report Posted January 4, 2012 I understand the concept, but where would the start up capitol come from? most suppliers offer terms of 15-60 days, with most being 30days. would this be a system of prepayment to secure said goods? Membership fees perhaps? the list of questions is endless. I like the idea, but would need more info on the inner workings before being able to say if it is good for the community or not. Sounds very much like a Wagjag concept to me... which actually works quite well for those that buy into the offers. G.
Fisherman Posted January 4, 2012 Report Posted January 4, 2012 In addition to what Garritt said, say we have a minumum order of product XYZ, where the heck do you stockpile it. In sure the seller doesn't want be be the storage facility once the items are sold. Even if we find a storage place, then what about shipping?
Roy Posted January 4, 2012 Report Posted January 4, 2012 That would be a huge cash outlay. Warehousing is no cheapie either. Neither is security and insurance. Take your example of propane cylinders. Where would you store 1000/5000 propane cylinders? How much is shipping on propane per cylinder? Realistically, you couldn't save anyone enough to make it worth their while ordering these things. There are many good reasons why it would work but many more reasons why it would not.
workwear Posted January 4, 2012 Report Posted January 4, 2012 i think it would be a great idea..BUT do you think some of these big retailers would allow this to happen??.....i know if i was a big box store and i heard of a manufacturer cutting into my merchandising,i would certainly do a few things to curtail the manufacture's method of selling to my public...either threaten to drop the line or source out a new product...imagine if we could get shimano onside by selling a one time bulk load of rods....the mark up on rods are approx 3 times of retail....bps would freak, wouldn't they?? now having said that....it would be interesting to see where the said manufacturer would draw the line,...we as consumers would have to have one helluva big buying power..to make it worthwhile to the manufacturer,to choose this new avenue over the traditional retail stores im all for this and would help in any way i can
GBW Posted January 4, 2012 Report Posted January 4, 2012 can we just get cost-co to do better on the fishing stuff? I personally don't have any funds to consider offering to help. its so bad right now I took a guys cup-o-change when I had someone else walk by and drop a dime. ok, that last bit isn't true but hey, I guy can dream big can't he? Good luck with this Cliff.
Big Cliff Posted January 4, 2012 Author Report Posted January 4, 2012 All I am trying to do is plant a seed guys! Sure there are many questions to be answered but I didn't build one of the largest companies of it's kind in Canada from the ground up by starting at the top. Sure there are plenty of un answered questions but if this is going to work, we have to start somewhere. Storage isn't a problem, as I mentioned, I already have places in Ontario and Quebec that would be interested. Capitol; let me worry about that, there is plenty of capitol available for a good well thought out idea.
mike rousseau Posted January 4, 2012 Report Posted January 4, 2012 I think the better... Or should I say easier way to save us all money... Is to post store sales on the forum... Lots of us saved a bundle on cabelas guidewear last year... Also educating other members to cost cutting practices we have discovered for ourselves... Example... Propane (1lb tanks)... You can get a fitting to refill your 1lb tanks at home... It will cost you less then $1 to refill your tank...
Skipper D Posted January 4, 2012 Report Posted January 4, 2012 Afew big key players lurking around , don't stop talking boys ............
workwear Posted January 4, 2012 Report Posted January 4, 2012 you could have a membership ....where by member orders directly from the manufacturer...shipped locally to a central warehouse....there is a furniture shop/store...that operates like that...direct buy i think its called...they dont stock anything and a member can shop thru catalogs....would be very interesting to see if manufacturer's would play along just imagine all them yamamoto baits we could buy at 2.50 a bag....
Gerritt Posted January 4, 2012 Report Posted January 4, 2012 Workwear are you willing to Pay the 5000.00 it costs to become a member @ Directbuy? Like I said this is a good concept... Cliff check out wagjag.com G
workwear Posted January 4, 2012 Report Posted January 4, 2012 no not at all gerritt....just throwin idea's out there...i wouldnt mind paying a few bucks for admin costs and the like...
radar Posted January 4, 2012 Report Posted January 4, 2012 Direct from wholesaler or retailer with a promise of a bulk purchase could work. For example - contact Coleman and say we have 35 guys who want a Coleman stove. Ask what is the best rate you can give?. Let the salesmen offer you some other items. Maybe they come back and say - ok if 45 of you want it we will give this rate. Its kinda like the way these group coupon discounts deals work. There doesn't necessarily need to be an investment in inventory. There would be a point man to gather the cash from board members. Pay in advance. Once enough people have paid the stuff is purchased. All the supplier wants is one cheque. Could work for rods, reels, lodges meals etc. (too bad beer store wouldn't work) Maybe TJ could get a cut and an OFC stamp of approval could be a marketing tool. There are some logistics like - where is the cash collected and how is the inventory distributed.
mercman Posted January 4, 2012 Report Posted January 4, 2012 This could really work Cliff.A small central group of members would be charged with purchasing, maintaining inventory, and keeping the books up to date. Members would have a yearly fee, and a membership card/ID. You could have different levels of membership,offering higher discounts to those who prefer VIP or Gold Status menbership. Those already owning bussinesses could have corporate membership. Basically, like Costco.
Fisherman Posted January 4, 2012 Report Posted January 4, 2012 Example... Propane (1lb tanks)... You can get a fitting to refill your 1lb tanks at home... It will cost you less then $1 to refill your tank... You're trying to tell me you can fill a 1 lb tank 20 times from a 20lb tank. I don't think so. Then you need to add the cost of the fitting. After a number of refills, the 1 lb tanks don't "work" all that well, kinda sorta leaky, so then you need to buy more 1 lb tanks. Maybe just easier to buy a 5lb and it's good for 10 years, refill mine at Costco for $3.00.
camillj Posted January 4, 2012 Report Posted January 4, 2012 Actually its easier than that ... set up OFC Co as a reseller .. approach all the vendors and viola ... 50% reseller discounts on pretty much everything ...
camillj Posted January 4, 2012 Report Posted January 4, 2012 Create a website ... take orders ... have little bit longer to 'order/ship' ... bulk discounts ... let vendors offer special deals (especially clearance type)
cram Posted January 4, 2012 Report Posted January 4, 2012 It's a great idea. My two cents.... 1 - It naturally works better for services, lodging, etc. No costs for shipping,warehousing, etc. Also, when a lodge or service company misses a day of service, that revenue is gone forever with no chance of recouping (at least without a time machine) so maybe more motivation to cut deals on slow times in the year. 2 - for actual products, would be better on those that ship direct from the manufacturer so that you don't need to deal with shipping, warehousing, returns, etc. With that in mind, it works best on higher-cost, smaller/easier to ship items. For example, the retailer margin on a $70 coleman stove might not be enough savings to justify the shipping expense and hassle overall, but what about a HDS fishfinder? Expensive (more margin), and relatively small/easy to ship.
bigugli Posted January 4, 2012 Report Posted January 4, 2012 Buying at sales does not give you anywhere near the discount that buying direct does. Every item, in store at regular price, has a mark up from 100% to 400%. Even a product at 50% off can offer a margin of profit. For instance, I purchase shrubs in 1 gallon pots, or yard ornaments at .99 each from the west coast. In turn, I sell these items from $5.99 to $8.99. This enables me to cover my purchase, plus shipping, plus taxes, and still have a 250% margin on my purchase price. Every retailer does the exact same thing. Biggest hurdles are warehousing and distribution after having purchased a bulk product. The supplier will only want one point of delivery unless the multiple POD's met a delivery minimum. In selling floral product direct to Lowes, Home Depot, Sams Clubs, there was a minimum case count or dollar value per store. From the POD the big challenge is in effectively and economically getting product to the members.
mercman Posted January 5, 2012 Report Posted January 5, 2012 Profit margins for most things is astronomical. Example, in my bussiness, i buy most of my bake elements for 7.75, sell them wholesale for 12.95 and retail them for 30 bucks. No matter how you look at it, there is a ton of money to be saved. Cliff, i will sell to the co-op cost plus 25 percent, with 60 day terms.
irishfield Posted January 5, 2012 Report Posted January 5, 2012 Profit margins for most things is astronomical. Example, in my bussiness, i buy most of my bake elements for 7.75, sell them wholesale for 12.95 and retail them for 30 bucks. No matter how you look at it, there is a ton of money to be saved. Cliff, i will sell to the co-op cost plus 25 percent, with 60 day terms. $31.99 at CTC as I bought one in a hurray last night before supper!
mercman Posted January 5, 2012 Report Posted January 5, 2012 $31.99 at CTC as I bought one in a hurray last night before supper! Wayne !!!!! You know im in parts Thats ok, those Lazer brand elements will burn out in less that a year.
irishfield Posted January 5, 2012 Report Posted January 5, 2012 Wayne !!!!! You know im in parts Thats ok, those Lazer brand elements will burn out in less that a year. No the last one lasted two ! Didn't have much choice when 5 minutes into oven warming the spiral spark of death occured!
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