Jeff,
Glad to see you back and I like hearing your comments on the meeting in Vegas. Couple of points that you brought up that are very important for everyone to understand. First, RDIM is a WHOLESALE buying club, this means that the competition on the Web either has to sell at wholesale prices to compete. Now, remember, to my knowledge, there are no competitors on the web that have the infrastructure to do this. They are all set up to sell based upon their inventory in their warehouse. This is a huge advantage to RDIM. RDIM is set up to have the merchandise drop shipped either to the buying club(physical location) or directly to the customer(or a predetermined location). By doing this, the company eliminates costs associated to warehousing and does not need to spend a tremendous amount of their working capital on inventory like other websites.
Another very good point you make is that RDIM will have 350,000 customers by the 2nd quarter. This is where RDIM will shine! From what I can see, the company will take this customer base and market to them to increase the sales. How? by their customer profile. When was the last time you bought a sofa?car?etc,etc,etc. By compiling these statistics, the company can then directly market to this customer base based upon the industry statistics of buying habits. Example: say you bought a sofa 10 years ago and the manufacturer says that the average family buys a sofa every 10 years, then that person gets some sort of advertisement about sofas. This can be done via e-commerce or direct mail or by telemarketing. With this type of strategy, do you think that RDIM can increase sales in their existing customer base? I think so!
This company has a great business plan, and being in marketing, I can see the potential. Wall street IMO, either does not understand or does not know about the company, but I know that it will happen as long as they continue to impliment their business plan. The people who are long should benefit from this company, and if you are long, sit back and relax, we've only just begun.
Kevin |
