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Hello and Good Day Everyone.
I would like to just wish everyone a happy 4th of July. Lets keep all the soldiers and their families in our thoughts today as we celebrate our freedom.
I was chatting on the phone with one of my very good friends that also happens to be a vendor of mine for my eBay store last night, when we got into a very heated discussion over why one should open and own a brick and mortar store vs. just being a total virtual venture.
My ideas on making money online just don’t involve owning a brick and mortar store. I personally don’t want the headache of having to always know inventory levels, having to promote my store locally and statewide, and also I dislike the fact that other people would have to be there to accept cash.
- Inventory Levels With the small eBay operation that I am running at the moment my inventory levels don’t have to be out the roof. I have a small niche on eBay and the inventory I need doesn’t even take up a whole closet. Now with owning a brick and mortar store I would have to stock the whole store, make sure I know what is hot at that moment, but still keep other things stocked. In my words, “a headache.”
- Promotion Promoting a brick and mortar store is actually very hard, yet very simple. Online we all think about PPC and email lists, out in the real world, we have mailing lists as well, along with newspaper ads, billboards, advertisements on radio and t.v., live spots, etc. I think back to one of my marketing courses that states for every dollar a company makes 50-65 percent of it went into advertising. To me that is a lot taken away from my profit. If 65% is ads, 35% is cost you only break even. Online or in the virtual world you can blast a very large scale email campaign for pennies.
- Distrust Distrust of employees is also very easy to have. I remember when I worked in a coffee kiosk. One of those Drive ups, give your order, pay, then leave. Well those are mostly a cash business, and I had a manager that was pocketing every third vehicles order. After that in running a brick & mortar business I have always been very weary of who you can trust to take in the money. Ok, I know there are cameras out there, but Bam! again another cost that has to be made up with sales. I hope to have an office building one day, but not an actual store.
Well those are just some of my thoughts on those two. Please feel free to comment and let me know your thoughts.
Happy Earning
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July 4th, 2008 at 5:05 pm
I had considered some sort brick and mortar business when my kids are a little older. But after seeing all the benefits of making money online, I will not be pursuing a franchise any time soon.
July 5th, 2008 at 4:11 pm
I will have to agree with you. Yes with the benefits of making money online, a brick and mortar store is hard to fathom. Thanks for the comment.
July 9th, 2008 at 5:37 am
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April 27th, 2009 at 7:06 am
Great post. Thanks so much. Nice day !