Since you are clear that you are going to start manufacturing, you have to find manufacturers. An expert would tell you: The big problem that the entrepreneur has is with the distributor. It is the one that has the key to the business of an online store. The margins of the electronics sector, for example, are crushed. They have always been very short between 4% -9%. For the ecommerce setup this is important.
If in principle, those distributors mark a price line, it can be interesting. Another thing is the conditions that they propose to you. You have to go dealer by dealer and ask them what conditions they set you. They can give you a 5% discount and a large area 40%, he continues. If from the start, they tell you that you have to buy 100 units that will already complicate things for a modest project, he gives as an example.
Three Business Models Which One Do You Bet On?
Okay, you want to sell touch pens, but how? Just pencils? High-end? Are you going to price? After carrying out the market study, on a napkin because of the cliché you write these three models, which when you start with the project are the only ones that occur to you:
It would be called www.tulapizdigital.com: it is a store for touch pens and spare parts for those pens at a good price. You think about bringing a product from China, taking 6-7 models and trying them out.
You would open a store that you would call something similar to www.bamboomanía.com. It is a brand-distributor store model. In this case, from the products of the Japanese Wacom. You have looked for a quality product in the market and you have found that the reference is the Bamboo Stylus, and you have asked the commercial contact to explain what the conditions are for its distributors. It may make sense to distribute this product and others of the same brand online. Your objective: clients with high purchasing power and graphic artists.
The latest model would consist of selling accessories for tablets and mobile devices and focusing it on a niche: children. The store you would open would be something like www.babytablet.com, a store of tactile products for kids: colored pens, pens for parents, leads for apps, covers and screen savers.
What would an expert say?
The expert would tell you that model A would not work as it is a single product, with little demand. It would not have enough clients to make it viable. Besides, it doesn’t have, at the bottom, enough margins. The B falls for the same reasons. The problem with these two models is that it is a small universe.
The C, however, could work. Why? “There is a boom in the penetration of tablets in homes. And the snobbery of the parents is now transferred to the children. It would work well with blogging and social media strategy. In addition, those who have a tablet have a reasonable purchasing power.
Where Is Your Provider
Where do you start? Where do you find suppliers? Knowing what you want to sell and with what business model, you start your market study on the Internet to see what type of cases and touch pens stylus is the name used in the sector for tablets are sold out there and what other accessories they can find those human beings who do not have a tablet with an apple engraved on their backs.