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Microcap & Penny Stocks : HouseHoldDirect.com (BYIT)-The Next SAMS/Walmart Ecommerce

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To: Scott Andrew Smith who wrote (1604)3/12/1999 12:07:00 AM
From: Jeffrey L. Henken  Read Replies (1) of 2994
 
A detailed description of what RDI Marketing is offering and how e-commerce comes into play:

RDI Marketing has already begun to offer Club Members wholesale prices on a tremendous number of products. The first step was the acquisition of PCS and it's two physical locations:

biz.yahoo.com

The private wholesale industry has been able to undersell competitors on a price basis because of buying direct from manufacturers and distributors. These savings are passed directly on to Club Members with no more than a 5 to 10% mark up on the products. I'm not talking about discontinued and overstocked items. I'm talking about name brand appliances, furniture, electronics and virtually every item you find in and around your house. How do they do it?

Two things come to mind. First private wholesale clubs make a great deal of money from the initial membership fees and the annual dues. That allows them to keep their mark ups on the products sold to an absolute minimum.

Second on a traditional basis there has been no advertising allowed for the products sold at these huge discounts. Why? Because it might undermine the sales of these products through traditional retail locations.

Where do we stand now with the company?

It's early but RDI Marketing appears to be on the move. The PCS acquisition has closed and yesterday RDIM announced that it is exploring possible marketing affiliations with USXP:

biz.yahoo.com

So what is next and how does e commerce enter the picture?

It's hard to say what is next for RDIM but e commerce will be a big part of the picture. While private wholesale buying clubs have been traditionally prohibited from advertising the 100's of complete product lines that they sell at tremendous discounts RDI Marketing can circumvent these problems. I can only speculate at how but let me try. Almost all these products are sold from manufacturer or distributor catalogues. Those catalogues could not only be reproduced but improved through 3D modeling on the internet. While anyone would be able to visit the e commerce site only Club Members will be provided with the actual wholesale pricing that they receive. Once again here is a great article on the future of e commerce. Scott I know you are familiar with it since you brought it to my attention first:

Message 8237996

Well that's enough for one night.

Thanks for asking my opinion, Jeff
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