Which industry are you going to earn your millions from?

[bizboy]

Interesting stuff. I don't do licensee or franchisee stuff do. I can't follow others systems that well. I rather create my own product and brand and company.

But as everyone can see in this video of yours, healthy beverages is on the popularity list right now. Amongst everything I have done in my life, the Honey flavoured Green Tea is the only product that has recieved really big support. It seems like almost everyone I speak to want to drink this. The question now is: Will they pay my price?

I don't like licensee or franchisee also, I was thinking you should find a company in Brazil that produces this type of drinks and import it into Europe with your own brand.

 

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[fanocks2003]

I don't like licensee or franchisee also, I was thinking you should find a company in Brazil that produces this type of drinks and import it into Europe with your own brand.

I already have a discussion with a Chinese supplier of the Honey flavoured Green Tea, though.

 

[bizboy]

I already have a discussion with a Chinese supplier of the Honey flavoured Green Tea, though.

Sounds good, so how much will each bottle of Green Tea be priced at?

 

[fanocks2003]

Sounds good, so how much will each bottle of Green Tea be priced at?

100 SEK, or USD$17. Before you say "that will never happen", let me prove it with hard sales data. Maybe it will sell, maybe not. That's the beauty with testing new concepts. You never know when stuff you thought where impossible, really happens. I have seen miracles happen before.

I really don't want every man on this planet to drink this tea. I only want the ones who can pay. I work differently from others (my own observation). My way is: High profit margins = better bufferts in bad times. You need to have a big burn rate buffert when business is low (which always happens. No matter what business you are in). With small profit margins you don't have the luxury of living on a big burn rate buffert. I find it kind of obvious that those businesses will sooner or later go out of business. Or they need really skilled money masters running the show, becuase it is hard enough to make ends meet in a business anyhow. Do you have to shot yourself in the foot by lowering your profit margins too? That is just crazy business.

Tim Ferriss also believe in bigger profit margins, for the same reasons. I can't blame him. Only agree.

 

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[bizboy]

100 SEK, or USD$17. Before you say "that will never happen", let me prove it with hard sales data. Maybe it will sell, maybe not. That's the beauty with testing new concepts. You never know when stuff you thought where impossible, really happens. I have seen miracles happen before.

I really don't want every man on this planet to drink this tea. I only want the ones who can pay. I work differently from others (my own observation). My way is: High profit margins = better bufferts in bad times. You need to have a big burn rate buffert when business is low (which always happens. No matter what business you are in). With small profit margins you don't have the luxury of living on a big burn rate buffert. I find it kind of obvious that those businesses will sooner or later go out of business. Or they need really skilled money masters running the show, becuase it is hard enough to make ends meet in a business anyhow. Do you have to shot yourself in the foot by lowering your profit margins too? That is just crazy business.

Tim Ferriss also believe in bigger profit margins, for the same reasons. I can't blame him. Only agree.

How much does a regular green tea bottle cost in Sweden and how much is the most expensive?

How big is this bottle? I'm not sure what type of consumers Sweden's are but only the ultra rich American consumers would maybe pay that much for that type of product.

 

[djs13]

My goal is real estate. I study it all the time. I'm always reading a real estate related book and I absorb my mind into REI blogs like JScott's. My age is my only disadvantage but I plan on buying a duplex next spring when I turn 18.

I've tried a few online ventures which profited little. I'm intrigued by online business because it can be faster to grow than real estate which is more like the snowball effect. I'm ultimately going to college in January and I can't run any type of e-commerce store in my dorm. So I guess my challenge is to set-up a site from now until then that can take in income without me looking over it everyday.

 

[fanocks2003]

How much does a regular green tea bottle cost in Sweden and how much is the most expensive?

How big is this bottle? I'm not sure what type of consumers Sweden's are but only the ultra rich American consumers would maybe pay that much for that type of product.

Swedish people like low prices. Quality is very foreign for them. That is why IKEA became such a popular brand. Swedish people are the opposite of americans when it comes to buying mentality.

But I think I need to test the concept. Maybe it will work. And $17 is not that high a price for 500 ml (bottle) of high quality Honey flavoured Green Tea. People are paying for many different quality values: Unique beverage, unique brand and a lot of beverage per bottle bought.

 

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[bizboy]

Swedish people like low prices. Quality is very foreign for them. That is why IKEA became such a popular brand. Swedish people are the opposite of americans when it comes to buying mentality.

But I think I need to test the concept. Maybe it will work. And $17 is not that high a price for 500 ml (bottle) of high quality Honey flavoured Green Tea. People are paying for many different quality values: Unique beverage, unique brand and a lot of beverage per bottle bought.

You must then have a hell of a marketing plan if people are going to be willing to pay that much for green tea.

I hope it works, goodluck.

 

[andviv]

I'm ultimately going to college in January and I can't run any type of e-commerce store in my dorm.

why not?

 

[djs13]

why not?

Well for personal reasons I'm going to a two year school in order to get good enough grades to get into a 4-year school like Babson, Syracuse or NYU. But realistically I don't think I would be able to manage both of them. If the project would be worthwhile and it profited I would be spending alot of time packaging and shipping products out of a dorm that I share with six other people. My plan includes purchasing a rental property next spring but I'm interested in e-business just to speed it up and make more money while I'm in college. I think my best bet is finding a niche site that sells information or something along those lines.

 

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[andviv]

During the last get-together, one of the participants talked about internet businesses ala Tim Ferris in his 4 hours workweek book... instead of packaging and shipping, they use dropshippers and profit. A few here are implementing that and it seems to be working for them, with a very low time allocated to the process... just a thought as I can't talk from experience here.

 

[fanocks2003]

You must then have a hell of a marketing plan if people are going to be willing to pay that much for green tea.

I hope it works, goodluck.

It might work or it might not work. I will not be the one thinking up the marketing plan in this case. I will team up with a swedish branding firm (Swedish Branding - Reklambyrå & designbyrå i Stockholm [NS4 version]).

I know that it will sell to fewer people for sure. But as I said: rather fewer people paying more than every human being on earth paying less, as my customers. This company will be very much niche based and very well catered to richer people. Also, if you do the numbers: If you sell one of these bottles for $17 you would have done 17 sales in one. Instead of selling to 17 customers paying $1 for each bottle I have made a 17 sales in 1. That means smaller manufacturing needed and less salespeople and/or customer service people needed to run this operation: I can keep it much leaner and still make the cash. There is nothing quaranteeing I will sell more just because I sell the same bottles for 17 times less, right? Just wanted to show my view on the situation. Lower prices can actually spell "low quality" in many peoples eyes (seen from a PR standpoint).

I remember there was some kind of mineral water selling for a very expensive price a while ago. I remember there being electrolytes in that water that made the water sell for a higher price due to it having a much higher quality than regular water. The branding strategy for the Honey flavoured Green Tea will need to focus on the same quality aspects of drinking Honey and drinking Green Tea. Both of them has a very healthy impact on human health. Both of those have extensive and positive backing from scientists world over (the two subjects are very well covered from a medical standpoint). The branding experts will need to focus on that fact and bring that unique selling point home in the minds of potential customers.

It's all about the "unique selling point". I think price + quality package and delivery + the "health impact" sales message will bring in the sales. Maybe fewer, but sales that equals many sales in one sale (i e 17 sales in 1).

As a finisher: I don't know how it is in the US or even outside Sweden. In Sweden it is cheaper to buy candy than fruit. Why? Can it be that fruit is more quality than candy? People have become so used with crap foods and crap beverages. Health is worth a lot (hence the high fruit prices), and it shows when you buy, for example, fruit and other stuff related to the same health quality field. Bad health is worth very little, good health is worth really much. The price shows the difference.

It's like putting a guy in the middle of the dessert and you being the only one with a Water Well. If that guy was rich you could pump that guy for millions in return for a cup of water. The same goes with health. You don't need millions of thirsty people (even though it would always be nice to have millions of people paying expensive prices), you only need a small, small percentage of the total with their head screwed on right. People who think of their good health before being the cheapest man/woman in the room. Sometimes lowest price is not the best bet. The branding guys will have to figure out a way of communicating that.

 

[bizboy]

Sounds good and it's true people are willing to pay higher prices for a healthier product.

Is that mineral water company still in business?

How much does a regular 500 ml juice bottle cost in Sweden and how much is the most expensive?

 

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[fanocks2003]

Sounds good and it's true people are willing to pay higher prices for a healthier product.

Is that mineral water company still in business?

How much does a regular 500 ml juice bottle cost in Sweden and how much is the most expensive?

If the mineral business is still in business. I have no idea. Just heard about it ones when reading about it in a Forbes article online. Don't recall the brand name though. Movie actresses in Hollywood used it.

How much 500 ml of juice cost in Sweden? No idea. I think juice is the wrong beverage though to compare a tea beverage with. Not the same sort of beverage so to speak.

There is no other tea beverage of this kind in Sweden either. In Sweden we have mostly tea bags and tea leaves. Lipton is the main company who do mixes of tea, but not in "ready-to-drink" mixes and not with honey flavour either, as far as I know of. I might be wrong, but I have not found any kind of "ready-to-drink" beverage from that company or any other company in Sweden.

There is of course one company (could it be Nestle?) who do ice tea beverages. They might be a great competitor to look at. But even if they do have a similar beverage with honey flavour, you still need to look at the quality in the end. Because the quality is what people pay a high price for. You can't expect to sell a beverage for a high price for long if the quality is "shitty". There is no way.

I focus on creating better products/services/concepts. That is my competing edge as an entrepreneur. Creating quality stuff instead of cheap stuff. Even though I could compete on price, I don't see the real benefit for either me or the customer. It may cost less, but the result will probably be bad (higher probability). Is it really worth it in order to save a buck or two? That is the real fundamental question to ask the customer.

 

[djs13]

During the last get-together, one of the participants talked about internet businesses ala Tim Ferris in his 4 hours workweek book... instead of packaging and shipping, they use dropshippers and profit. A few here are implementing that and it seems to be working for them, with a very low time allocated to the process... just a thought as I can't talk from experience here.

Are you meaning drop shippers in terms of me hiring someone to package ship/my products? Or would it be like the ebay type drop shippers where I sign up for their program and I just have to get them leads almost like an affiliate network.

 

[bizboy]

Thanks for the infomation and the reason I was asking the prices of drink bottles was because I was just trying to get a idea how much drinks cost in Sweden.

If you don't mind, I would like to ask you a question........have you ever been to United States, Canada, Australia or New Zealand?

 

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[fanocks2003]

Thanks for the infomation and the reason I was asking the prices of drink bottles was because I was just trying to get a idea how much drinks cost in Sweden.

If you don't mind, I would like to ask you a question........have you ever been to United States, Canada, Australia or New Zealand?

Never been to any of the countries mentioned above. Though I will visit New York City during New Years Eve this year. Looking forward to it.

 

[bizboy]

Never been to any of the countries mentioned above. Though I will visit New York City during New Years Eve this year. Looking forward to it.

Sounds good, you will enjoy NYC.

Hope maybe being in NYC you will receive new business ideas for Sweden.

 

[fanocks2003]

Sounds good, you will enjoy NYC.

Hope maybe being in NYC you will receive new business ideas for Sweden.

I'm certain I will find new ideas in NYC. I find ideas everywhere. Call it a gift.

 

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[bizboy]

I'm certain I will find new ideas in NYC. I find ideas everywhere. Call it a gift.

Perfect, that's what I like to hear. I have the same problem, I always find new business ideas everywhere but more ideas from different countries...........must be in our blood.

 

[marknels]

Multiple streams of income.

e-commerce
affiliate marketing
Send Out Cards

 

[bizboy]

Multiple streams of income.

e-commerce
affiliate marketing
Send Out Cards

Send Out Cards...................what is that?

 

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[MooreMillions]

Information publishing.:coffee:

 

[dkt91]

Swedish people like low prices. Quality is very foreign for them. That is why IKEA became such a popular brand. Swedish people are the opposite of americans when it comes to buying mentality.

Muahaha...
This is exactly the way things are going in Germany, really! People rather buy a bed for 500€ which is broken after a year then a bed for 3000€ that will last 20 years. I guess this is really a European habit.



Back to topic: These are the industries I am going to earn my money from:

1. internet but not really an e-commerce (I'm working on something new, innovative right now)
2. real-estates
3. my own hotel chain

 

[fanocks2003]

Muahaha...
This is exactly the way things are going in Germany, really! People rather buy a bed for 500€ which is broken after a year then a bed for 3000€ that will last 20 years. I guess this is really a European habit.

Yes, it seems like Europe and even Russia has this buyer mentality. In order for you to succeed with premium prices over here, you need a strong brand promise and you need to live up to that promise like it was "everything".

I read in a book about the history of IKEA and it's founder Ingvar Kamprad that IKEA tried to establish themselfs in the US during the 90's. They failed so miserably in the beginning because the whole concept of selling furniture for such a low price and for such an inventive way of packaging furniture was hard to sell in the U.S. Also, in the U.S. it was very hard to make their brand promise heard. U.S. has many, many companies competing against each other. So it is very, very hard to make your voice heard. IKEA really had to rethink their launch. The swedish IKEA U.S. manager, had a hard time proving the concept.

 

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[bizboy]

Muahaha...
This is exactly the way things are going in Germany, really! People rather buy a bed for 500€ which is broken after a year then a bed for 3000€ that will last 20 years. I guess this is really a European habit.

I don't feel it's a European habit, I think it's more of human nature of thinking, we are just programmed to think this way.

For example here in the states, everyone in Florida fills up gas at the Hess gas station because it's about .01 cent cheaper then the competitor but the the Hess has anywhere from 5%-10% ethanol (ethanol burns much faster then gasoline), which basically means when you think your saving money your not.

 

[fanocks2003]

I don't feel it's a European habit, I think it's more of human nature of thinking, we are just programmed to think this way.

For example here in the states, everyone in Florida fills up gas at the Hess gas station because it's about .01 cent cheaper then the competitor but the the Hess has anywhere from 5%-10% ethanol (ethanol burns much faster then gasoline), which basically means when you think your saving money your not.

Agree. Why people think cheaper is better than quality/more expensive may depend on the very short term mentality we all seem to have. We have grown up (most of us at least) under the idea that "everything should be fast, cheap and most of all easy". This mentality is very well ingrained in every human mind today.

Even I fall under the same syndrom from time to time, but I soon look at it from a more sober viewpoint and find out that quality in most cases beats cheaper alternatives. It may be more capital outlay right now, but it may be a much cheaper alternative in the long run.

This thing about paying more for quality now goes hand in hand with the expression that says it is better to get things right from the beginning. And the other one saying it is better to go the long route than taking shortcuts.

Shortcuts are only good in certain circumstances. When they are proved to be much better than the long route.

 

[PaulRobert]

Bump- Let's see where others are planning to make their millions.

As for me-

Creating my own product, brand it and create my own company out of it. :fastlane:

 

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[hatterasguy]

Real estate. Buying dirt and building on it and reinvesting the capital into cash flowing properties.

 

[JayKim]

Invention, website, or get lucky in poker.