Κυριακή 6 Δεκεμβρίου 2020
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Innovative Ideas

They keep America in the forefront of Economic progress.

Innovative Ideas

 by Capricorner

 

 

 

Customization and Mass Market are two opposites; not if one markets massively …


C u s t o m I z a t i o n.

Take the direct sales model of cosmetics giant AVON PRODUCTS, the customization ways of DELL and the easy shopping way of AMAZON.COM, put them together cleverly and the result is a New way to market custom made shirts, trousers, cashmere sweaters, cuff links and soon more.


A Sales Representative visits the customer at home or the office to take the customer’s measurements, suggest fabrics and styles and carefully note what the customer wants. The orders are sent to China where every item is made according to the instructions received and sent to the customer. The entire process takes about 15 to 20 days. What is amazing is the cost … about half of what one would pay in a store! Customer satisfaction ? 93%. This is the foundation of this New Business. Customer satisfaction and low prices. The result is that sales triple every year since this business was started by two former Finance Executives in 2007!

 

The Business model is simple and does not require much capital. A customer contacts a Sales Rep either through the company’s Web site, or, which is the more common, through the referral of a friend.


The company has about 700 “styles advisers” who earn commissions of up to 25%  because they are being extra careful to get the customer’s measurements right, note carefully customers’ desires and generally make customers feel comfortable about buying a garment they can not try on. They do good work and satisfied customers refer them to others. This Business model does away with upfront retail costs. The sales staff gets paid from the orders it takes. Products are made to deliver orders taken, no inventories.


The company grows because the quality of its sales force is exceptionally good. Each sales person pays $399 to buy the fabric samples, sales materials and receive the necessary training. It can also recruit a maximum of five other reps, getting a cut from their commissions. This restriction means that each rep is very careful to select the very best other reps who can produce good commissions from which to take their cut.


 

YOU WANT TO RENT YOUR CAR TO OTHERS ? You want to rent a power saw ? a bedroom? Now there are online rental markets for everything one can rent. Renters are matched to Lenders who would never have found each other otherwise. An American company can help you rent “property” in 10000 cities around the world, be that a Castle or a Tree house. Another can rent you high end electronics. Another an ice cream maker. People monetize their idle, or little use possessions by renting them out. The online companies who arrange these peer-to-peer rentals take pains to ensure the safety and reliability of the products rented. The Web enables people to restrict their “rental” interests to their friends and followers … Facebook, Twitter.

 

 

One up for America, land of the free thinking.


 

 

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