Turning website into making profit

[Pekka]

I know exactly what I'm selling. I know EXACTLY who I'm catering with it. Maybe more than most sellers will ever know. It is very spesific group...

I have layout ideas. My graphic knowhow is not the best, but my friend has decided to help me who is professional graphic designer, and very good one.

It won't start by selling anything. It's a site about something, and after I see how it goes and if the site itself gets popular, then I go selling some products. And mostly just to cover the domain etc costs actually. Maybe few extra euros to buy real cigarettes and not these pirated crap dry ones . And if it doesn't success, hey it's all good.

I know I'm being very blur about this, so you couldn't know.. sorry about that. I have also something that no one else has. Goal is not huge sells necessarily, it's all good. No hurry, I got all the time I need...

So it's pretty safe to try out. But what I do not know is the hardcore expertise, the thing that separates the true winners from average and losers. How to maximize it and how to minimize my expenses. And as I'm being general, I expect general responses.. yeah I know most internet based places are doing horribly.. I mean, one of the biggest record stores went down.. groovetech.com... would have never guessed they were in such bad shape.

It can work for sure, it's all up to how well I can implement the game plan, because there's nothing wrong with it. But that's another question!.. thanks for the good wishes. I send you a free t-shirt someday if it works out

[Urban Ranger]

Originally posted by Pekka
So it's pretty safe to try out.

That's always a good thing.

I assume you know all the basics, like having a business plan, made realistic assumptions on finanacial situations (unlike the dotcom people ) like when will you breakeven, etc.

[Pekka]

Well in theory I can do those. I can count the critical and all other points etc etc no problem, do the books and business plan.... and whole lots of other analyzing ding and dong. But that's not the problem, the problem is actual lack of experience. So, I'm just.. you know.. basic things, what should I expect that I don't now think maybe etc.. cut down the costs.. But the sales are not the priority #1. It would just go with the site if it should go that way.

[DAVOUT]

How do you intend to collect the payments ?

Depending of the weight and volume of your product, you have to decide what quality of box you need (transportation is a cruel test for boxes), and considering that it will be the first thing coming from you, you have to choose an appropriate appearance; then you could inquire about the cost.

[Pekka]

Well, I figure money orders, via credit cards (mostly Visa). Maybe some other payment methods also, but these for sure. Good thing is the weight is not big and the volume, well that depends, but the products themselves are never big, so .. the boxes can be rather small. Something you could use to fit in few VHS tapes maximum in ordinary sale.

[DAVOUT]

I suppose that Visa card payments would require a personnal authorisation from the Visa Group to charge the client account. They likely prefer a registered corporation than an individual.

If the product is light and small, a box could be replaced by an envelop reinforced by plastic bubbles, cheaper and lighter.

[alva]

Pekka, you're talking 'bout chinese take-away, right.

[Pekka]

Yeah, that one I have checked already from them (their website). Nah, I think envelope won't cut it.

[Traianvs]

Pekka, you're starting an online porn shop right?

I thought so because you said you wanted to have profit

[Pekka]

It's not porn though..

[Zopperoni]

What's your inventory model like? Is your product something "home made", or do you have to buy it from a wholesaler/distributer? Do you manage the inventory yourself, or will you have it vendor managed?

Amazon is a nice example to study the business model of, but you could also look at the business models of, for instance, content and/or interactive services providers.

[Pekka]

I'd get the product from the distributer.. I'd manage the inventory myself, if it starts getting better (selling more), then I have to get help.

[Zopperoni]

The principle of vendor managed inventory is that you make an arrangement with the supplier about the inventory. The supplier then keeps track of your inventory for you, and replenishes it for you in a timely manner.

O, and something on financial/logistics models. Check out Dell's, it's very clever. The transfer of ownership of the inventory occurs when it's taken from the factory shelf at Dell, not when it arrives at the Dell assembly facility.

[DAVOUT]

Originally posted by Zopperoni
Check out Dell's, it's very clever. The transfer of ownership of the inventory occurs when it's taken from the factory shelf at Dell, not when it arrives at the Dell assembly facility.

Pekka is very clever too, but the Pekka factory is at the same place than the Pekka assembly facility. Much more clever.

[DanielXY]

the boxes can be rather small. Something you could use to fit in few VHS tapes maximum in ordinary sale.

...

I'd get the product from the distributer.. I'd manage the inventory myself, if it starts getting better (selling more), then I have to get help.

So... you make an info site on drugs and than sell them?