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Old 12-21-2006, 10:50 AM
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Default Business Idea: Negotiating Discounts of Behalf of Retailers. Please Critique

Hi,

the idea is basically we try to help smaller retailers gain better deals with their wholesalers and manufacturers by gathering together business people that deal with similar wholesalers and pooling together their funds to gain more buying power (e.g. together they now have 200,000 in buying power rather than 2000 alone).

Here is an overview of what we do

Brief Overview of Business
-We will identify each client’s budget spent on each TYPE of wholesaler.
-We will try to pool together as large a budget for each type of wholesaler as possible.
-After, we will speak with wholesalers of this type of business and discuss the discounts available for that budget.
-Best if particular wholesalers have a wide variety of merchandise.

Must outline:
-Where the good are to be picked up
-How does the discount change if someone decides to not pay.

Then
-Clients will make a vote on which wholesaler offers the best overall dealers
-They write cheques to both us(e.g. equal to 20% of discount negotiated. 15% for customers that have dealt with us for number of times) and the wholesaler.

Do you see any potential problems? There must be some. And any suggestions on what to do about them?
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