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New business idea...what do you think?
saysum
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
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
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Comments
Where`s the profit for you? Also, who assumes the risk of unsold leis?
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!