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Microcap & Penny Stocks : HouseHoldDirect.com (BYIT)-The Next SAMS/Walmart Ecommerce
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To: Jeffrey L. Henken who wrote (2406)5/24/1999 1:21:00 AM
From: Sigmund  Read Replies (1) of 2994
 
Hmm. Offering for sale every product made in America doesn't seem very realistic to me:

* Channel Conflict
* Robinson Patman Act

Does either of these two concepts ring a bell?

I hope the RDIM plan is a bit more focused and realistic.

If you look at most companies in the membership field, their success is based on controlling the customer not controlling the supplier. The key then is how to control a large number of customers. I doubt that you can do this by charging them a big up-front fee.

Controlling the supplier becomes even less possible the broader your product coverage. If your product coverage is narrow, you might become important to a supplier and thus negotiate better prices. If you are selling small quantities of a very large range of products, your ability to negotiate favorable prices is reduced.

That is why Amazon.com started with books and will eventually branch out into many other areas. They didn't start offering every product under the sun.

RDIM needs a strategy based on controlling a segment of customers. Catalog stores are being eliminated by the Internet. It should knock out most facilities-based buying clubs eventually also. This will make the acquisition of buying clubs pretty easy as they look for an out. Acquiring buying clubs creates a customer base. If that base can be served well, it might be very valuable. That will be the trick, how to keep these customers without losing your shirt on keeping the acquired stores open long enough to convert the membership to Internet rather than on-site buying.

Can this be done? We will find out.
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