T
Topelec
Hello Guys
This is not an advertisement, just a survey. Please read on.
I am considering to set up a buying consortium for electrician and contractors that will save up to 35% of your annual spending on electrical goods. Hence the reason need your opinions on this business model.
Have worked in electrical wholesale industry for almost 4 years, and found a lot of problem in this industry and fortunately, I am still passionate about it, hence the reason trying to start a new business.
Now the problems in currently Electrical wholesale industry
1. Price is not transparent in a transparent world (due to internet
2. Wholesalers are trying very hard to make every penny off electricians and contractors
3. Profit is always first to every wholesaler
4. Time wasting on price negotiation process
There are few thoughts from my working experience for electricians and contractors
1. You don't need a wholesaler, but you need a buying media to help you to buy goods at competitive prices and provide local service
2. For most of time, you pick up the lowest quotation is due to you have no idea on the products. However, once all product information is revealed, you will choose the best matching products prior to price for the project
3. You buy off from a local wholesaler due to the convenience they provide and people you could trust who introduce a product to you
4. The price tags cannot reflect the true value added any more. i.e. how you could value the price on a product indeed reflects the true value being added to it
Above all, here is what I think electricians and contractors shall expect as the time goes on
You need a Buying Manager rather than a wholesaler work closely to your business to provide you right products advice at low cost
So my business plan is to create up a buying service business for electrician and contractors that helps you to reduce overall spending and provide local service to dealt with suppliers as well as financial services i.e. credit terms
Here is how I think it will work
First of all, this business is a buying service based on Service not a wholesale business based on products
1. This business will be membership ONLY business.
2. Monthly Membership fee is £36 + VAT, (From my calculation, if you spend over £100, you start to saving by using the service
3. The Price you pay will be the price we buy off from the suppliers, We will not take any commission, rebate etc to increase our profitability, plus this is not ethical for a "buying manager" of your business
4. We will charge customers a fixed service fees on different level of spending as profit to keep the business going on monthly basis, i.e. we will charge a percentage on monthly overall spending, if you spend £1000, we will charge you x% as a service fee, if you spend £2000, we will charge you
5. We will buy stock for immediate dispatching
6. 2 hour delivery at cost of £6, or free next delivery. (ONLY local business), Nationwide at £5 per box through DPD
7. Dedicated buying management team for the customers, so that you will only deal with people you know and who knows your requirements
Hence the reason, we are not trying to make money off from our members, we are trying our best to save our members' money. As a reward, we take a small percentage of member's saving
Due to the fact, this business is a buying service, it will require members to pay cash for the goods or deposit for a credit accounts to reduce the business risks as insurance requirement. I am very confident that by using this service, I could help our members to save
up to 30% if current monthly spending is less than £1000;
up to 20% if current monthly spending is;£1000 - £3000
up to 18% if current monthly spending is over £3000
up to 15% if current monthly spending is over £5000
up to 10% if current monthly spending is over £10,000
Any comment is welcome. you are much appreciated if you could complete the survey and your comments to improve the business plan.
This is not an advertisement, just a survey. Please read on.
I am considering to set up a buying consortium for electrician and contractors that will save up to 35% of your annual spending on electrical goods. Hence the reason need your opinions on this business model.
Have worked in electrical wholesale industry for almost 4 years, and found a lot of problem in this industry and fortunately, I am still passionate about it, hence the reason trying to start a new business.
Now the problems in currently Electrical wholesale industry
1. Price is not transparent in a transparent world (due to internet
2. Wholesalers are trying very hard to make every penny off electricians and contractors
3. Profit is always first to every wholesaler
4. Time wasting on price negotiation process
There are few thoughts from my working experience for electricians and contractors
1. You don't need a wholesaler, but you need a buying media to help you to buy goods at competitive prices and provide local service
2. For most of time, you pick up the lowest quotation is due to you have no idea on the products. However, once all product information is revealed, you will choose the best matching products prior to price for the project
3. You buy off from a local wholesaler due to the convenience they provide and people you could trust who introduce a product to you
4. The price tags cannot reflect the true value added any more. i.e. how you could value the price on a product indeed reflects the true value being added to it
Above all, here is what I think electricians and contractors shall expect as the time goes on
You need a Buying Manager rather than a wholesaler work closely to your business to provide you right products advice at low cost
So my business plan is to create up a buying service business for electrician and contractors that helps you to reduce overall spending and provide local service to dealt with suppliers as well as financial services i.e. credit terms
Here is how I think it will work
First of all, this business is a buying service based on Service not a wholesale business based on products
1. This business will be membership ONLY business.
2. Monthly Membership fee is £36 + VAT, (From my calculation, if you spend over £100, you start to saving by using the service
3. The Price you pay will be the price we buy off from the suppliers, We will not take any commission, rebate etc to increase our profitability, plus this is not ethical for a "buying manager" of your business
4. We will charge customers a fixed service fees on different level of spending as profit to keep the business going on monthly basis, i.e. we will charge a percentage on monthly overall spending, if you spend £1000, we will charge you x% as a service fee, if you spend £2000, we will charge you
5. We will buy stock for immediate dispatching
6. 2 hour delivery at cost of £6, or free next delivery. (ONLY local business), Nationwide at £5 per box through DPD
7. Dedicated buying management team for the customers, so that you will only deal with people you know and who knows your requirements
Hence the reason, we are not trying to make money off from our members, we are trying our best to save our members' money. As a reward, we take a small percentage of member's saving
Due to the fact, this business is a buying service, it will require members to pay cash for the goods or deposit for a credit accounts to reduce the business risks as insurance requirement. I am very confident that by using this service, I could help our members to save
up to 30% if current monthly spending is less than £1000;
up to 20% if current monthly spending is;£1000 - £3000
up to 18% if current monthly spending is over £3000
up to 15% if current monthly spending is over £5000
up to 10% if current monthly spending is over £10,000
Any comment is welcome. you are much appreciated if you could complete the survey and your comments to improve the business plan.