Question
I am thinking on a twist of the group buying concept however I do not really know about the prices I could get in the tech world for popular products such as smartphones, tablets, TV etc... compared to retail price?
And would there be any minimum price requirements on my ends?
Also are there any other requirements or can simply anyone contact the manufacturer n get a quote?
Thanks a lot.
Answer
Margins can vary by manufacturer depending on whether they are first (eg. Samsung TV), second (eg. Toshiba TV), or third tier (eg. RCA TV).
In your negotiations with the manufacturer, I recommend that you discuss price protection to ensure that your margin rates remain neutral as the product becomes obsolete. Alternatively though, you may be able to negotiate lower costs if you choose not to be protected; however, you would want a robust exit strategy to ensure your margins are protected should your sales not materialize.
