biophase
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I've been researching new online retail businesses and I've come across a few that make me scratch my head. I wanted to see if there is an upside for a business to do this:
Example 1: Product XYZ, sold by many online retail stores at a price of $90-$120.00. Wholesale cost of product direct from manufacturer, $55.00.
Seen on Ebay for sale by the manufacturer for $49, Buy it now! ??? WTF?
Example 2: Product ABC sold by many online retail stores at $320-$450.00. Wholesale cost of product $230.00. Suggested retail price of product $580.00.
Sold on manufacturer's website to public for $290.00. Again.. WTF?
I do not understand why businesses do this to themselves. My opinion is that you would want to remain B2B. Let the retail shops do the SEO and marketing. Let them sell your stuff. Why undercut them? Why have a suggested retail price if you are selling at 50% of it?
Am I missing something or do these people not understand that they'd make more money letting retailers sell for them.
I obviously can't compete with my supplier. They're dumb enough to run a PPC campaign next to mine. In the first example, why sell to the public for $49?? Let me sell them and I'll pay you $55 AND you don't have to pay for clicks. Again...
Example 1: Product XYZ, sold by many online retail stores at a price of $90-$120.00. Wholesale cost of product direct from manufacturer, $55.00.
Seen on Ebay for sale by the manufacturer for $49, Buy it now! ??? WTF?
Example 2: Product ABC sold by many online retail stores at $320-$450.00. Wholesale cost of product $230.00. Suggested retail price of product $580.00.
Sold on manufacturer's website to public for $290.00. Again.. WTF?
I do not understand why businesses do this to themselves. My opinion is that you would want to remain B2B. Let the retail shops do the SEO and marketing. Let them sell your stuff. Why undercut them? Why have a suggested retail price if you are selling at 50% of it?
Am I missing something or do these people not understand that they'd make more money letting retailers sell for them.
I obviously can't compete with my supplier. They're dumb enough to run a PPC campaign next to mine. In the first example, why sell to the public for $49?? Let me sell them and I'll pay you $55 AND you don't have to pay for clicks. Again...
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