Well I've been thinking of starting some kind of business lately and came up with an idea that even I do not know can work. That's why I need some advice or opinions from people over here.

Ok, let's start. Correct me if I'm wrong, manufacturers sell products to wholesalers/us and the price will go down, although not that significantly per unit item, as the purchase volume goes up. So :

1) 1-10 units = $10 ea
2) 10-50 units = $9 ea
3) 50-200 units = $8 ea
and so on...

So let's face it, most of the time retail shops don't really buy 200 units of let's say LCD TVs at once, if they can't sell it in time, they'll lose loads of money right? So they resort to just buying like maybe 20 first.

Finally the idea : What if I were to group up orders from these many retailers, at the same time keeping their information confidential between the different retailers, and push it out as one order. So what started as a retailer buying 10 units for $100, he can buy 10 units for $80.

Now shoot down this idea with your best bullets. What's worse than that is me not knowing that this will work at all.

There are a number of buying groups operating

Euronics are one in the UK - a series of independent shops operating under a single brand utilising their buying power.

Originally Posted by fivebellies

There are a number of buying groups operating

Euronics are one in the UK - a series of independent shops operating under a single brand utilising their buying power.

I checked the site. How do you actually join that group?

Id say they are getting their stock from distributor so they get discount not from how much would they get at once but whats their week/month revenue + they get credits with distributors (get stock worth 100k today pay in a month time). The group you are talking about could be a distributor on its own as the stock is usually needed right here right now ,if they would have to wait until you will pick up 100 orders their customers will go to someone who can get it instantly etc.
But you may get it work as an idea isnt bad go to one distributor with 100different shops so even if they pick 1pc of each equipment then you may get order for 100units and get your cut

Originally Posted by DEI

Id say they are getting their stock from distributor so they get discount not from how much would they get at once but whats their week/month revenue + they get credits with distributors (get stock worth 100k today pay in a month time). The group you are talking about could be a distributor on its own as the stock is usually needed right here right now ,if they would have to wait until you will pick up 100 orders their customers will go to someone who can get it instantly etc.
But you may get it work as an idea isnt bad go to one distributor with 100different shops so even if they pick 1pc of each equipment then you may get order for 100units and get your cut

What you mean is the retailers will get a lower price if they get to sell the products that they buy from the distributors at a very fast rate?

Well
I meant that resellers needs products instantly ,basiclly they have a customer for plasma and they dont have it on the stock today. So they ask him to come in tomorrow. They call distributor and ask to delivery it for tomorrow. Retailers get discounts based on total of they sales ,distributor gives really small discounts if you want to buy x pcs at once, but they give it on the long term (if you would be buying 20k worth stock every week for example-). As far as i know this group eurotec is a retailer itself and they prices arent that competetive, but im saying that this idea could work if you would get in touch with large group of retailers offer them comptetive prices and instant service which may be hard (because they have discounts and credits with they distributor already). They wouldnt want to resign from their cooperation with distributor they have over years, unless somebody is going to offer something really competetive (some of the retailers would have credit accounts of 100k GBP and discounts of 10-20% already can you beat this? ). Like for an example with my 1st chanell i got 5k credit straight a way with no credit history after 1st order i received free printer ,same delivery charge regardless how many items i get and 24h delivery for 10gbp and so on. Then obviously you would have to handle the returns etc. To become a hp distributor you need to spend around 100k in other distribution chan first then site inspection and a lot of cash for start.
So when you go to any retailer you need to offer
1) best prices
2) credit limit
3) time delivery
4) handle returns
5) Gifts

But biggest plus of this idea would be if you could cut the way and get stock for shops from wholesaler if you meet their moq - im not sure but i think that many distributors are wholesalers aswell