Monday, September 20, 2010

Launch48 idea

There's quite a few people in the London tech scene who like technology and are willing to pay for it. Many will buy retail products as they wish to have instant gratification in getting the latest tech products.

However there's a lot of people that while still wishing to get the latest and greatest will wait and search around on the Internet to get the best bargains.

There's potential for a site, which is set-up as a member's only site and members can refer friends. The site would make deals for high value white goods such as flat screen TVs, cameras, HiFi.

The site would go direct to manufacturers and commit to buying a certain amount of product (of a specific type) and agree to pick-up and distribute. Product would have a full manufacturer guarantee.

The offer would be put on the site and members would commit to purchasing (money would be collected to escrow or they'd agree to allow card purchase to go through when offer activates i.e. minimum number of orders received).

Since the offer would be the price wholesalers get, savings could be considerable (generally wholesale make 100% and retail at least 40%). Therefore savings (to the end-user) could be 50% retail and the site would still make a profit (this doesn't go for all products i.e. Apple are notoriously low margin).

the model would work as people with a high disposable income refer their friends who would also be interested in this type of offer and so it spreads virally.

Products such as say a high-end Plasma TV mat retail for £4,000 - 5,000 and if they were sold at £2,500 that would be attractive. However to buy direct from manufacture, you'd need to commit to the hundreds of items. Also you'd have to commit to a single product.

This could also extend to very high value items such as cars (being aware that you'd have to pick car companies that didn't mind going against existing dealerships, but some would) and again you'd have to pick a specific model/configuration, but discounts could be worth it.


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