We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

New business idea...what do you think?

saysumsaysum subscriber Posts: 1
Hello, this is my first time posting...so take it easy...
I have always been in this business but want to take it to another level and wanted your opinion.
I am involved in wholesale distribution of Orchid Leis.  These are the big beautiful leis you may see around people`s necks during graduation ceremonies (at least thats the new trend out here on the west coast).  The company that I am involved in distributes it to flower wholesalers, Costco, and other florists.  These people are the middle men who jack up the prices by 200-400% by the time they get to the people.  For instance, I may be able to get the leis for $12-15 (depending on the volume) and they turn around and sell it to people for $35-60 each. 
My idea was to cut out the middle men and target high schools and colleges as a fund raiser or money making opportunities for worthy students (kids who needs extra money for school).  I would sell them the leis for $15 and they can sell it for at least $30.  If at a public H.S. they graduate 500-750 students and 1/4of them buy the leis, there is a potential of at least $2000-3000 profit in a few short hours!  This number is on the conservative side.  My experience is that once a parent/family member/friend sees another graduate with the lei, they would want the same for their own.  It becomes a chain reaction. 
Everyone benefits...I make money, the school/student can make money, and the graduates get the leis for a big discount.  These leis are very durable in nature and can be fed-ex anywhere.  They will last up to a week once they arrive at the wherehouse.  One of the drawbacks is that this business only peaks during graduation season (May/June).  But there is a whole lot of money that can be made during that time. 
I just don`t know how to go about marketing it or seeing this thing through.  What are your thoughts?  Is my idea too far fetched?  I would appreciate any feedback.saysum2007-1-20 0:11:55


  • Options
    stevesteve subscriber Posts: 14
    You said you get the leis for $12-15 and plan to sell them for $15.
    Where`s the profit for you? Also, who assumes the risk of unsold leis?
  • Options
    ujeansujeans subscriber Posts: 1
    This sounds like a good opportunity, however it also sounds
    like there may be some more research that you need to complete.  The
    mark-up looks to be healthy.  Have you created an spreadsheet to verify
    your business model?

    The graduation market seems to be quite seasonal and I think your price of $15
    seems to be a bit on the low side.  What other markets can you sell the
    leis in to?  How about for weddings, bar/bat mitzvahs and other events?

    Good luck with you plans!
Sign In or Register to comment.