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Old 02-21-2008, 04:03 PM   #1 (permalink)
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Need some help on important business decision!!

I recently ventured into the distributing sector of region 1 adult content dvd's, my supplier (the manufacture) Has a stable and reputable history. I have been doing this for about a year and since I started, I have grossed 190k... Not too bad considering Im 22, and the people who buy from me still stand to make HUGE profits at the retail level or sub-distributing. but I feel their is plenty more to be made. Right now I sell a minimum of 25 per order with a "no cap" order limit, and can sell anywhere between 1k and 10k any givin week, $1.30 per dvd (gross average)... I understand the internet is over saturated with Adult content and people claiming to have "wholesale" priced items... My fear is that if I was to develope a site, I would be overlooked due to category saturation passiveness. Should I attempt to develope an affiliate program, proceed with a web-site, or just settle with the "brick and morter" concept of sales? I really would like to expand my business thus generate more revenue, but fear the revenue/time consumption might not return as great a profit as current. As of late, all my sales are paid for via phone, person to person, or E-mail. I am licensed to distribute adult content, and do impliment a "no sale" list of regions in the US which do not authorize Adult content sales. Not looking for any legal advice in the matter, just advise as to starting a web-site or not. Should category saturation passiveness be a reason to not start a site?
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Old 02-21-2008, 10:41 PM   #2 (permalink)
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In over saturated markets, I beleive it best to find a marketing niche within the established market. Kinda like reinventing the wheel.

If you can discover a marketing niche that "packages" your product enough differently that for being the same product your buyer thinks he is purchasing it in a new way, different from the "norm", people will go for it just because it is different. And if you sell people on the idea that your method is the smarter way to buy, people will go for it because they think it smarter and different. Maybe reducing the amount of effort a buyer must exert to purchase and reduce the time to receive your product.

I don't have specifics for you because I have never worked in distribution. But in general, these ideas could work for you.

You'll never control the market, as it is so saturated already. My goal would be to corner a percentage of the existing market through unique sales techniques.

Hope this helps.
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Old 02-21-2008, 10:52 PM   #3 (permalink)
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Where do u sell them now if u dont do it online or b&m?
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Old 02-22-2008, 06:25 AM   #4 (permalink)
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Thanks Tazman, I hadn't thought about that!

PBOY, when I started I figured it best to do it just like they did back in the day, before the internet... I started calling retail stores, throwing down the 4 minute pitch as to why my product was so much better... Then before you know it.... I had repeat customers. They either order by phone, (all past clients have the business card) and I call all my clients every two weeks, most of the time thats when they order.... then theres E-Mail, They send me an email wiith the mailing address and their order, Then I would send them an invoice with payment options. Last, I stay on the road... If I show up in person, drop off a few dvd's for free.. they really like that. But all in all, thats how their sold : )

p.s. (DONT DO DISTRIBUTION) lol j/k
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Old 02-22-2008, 06:06 PM   #5 (permalink)
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Another thought -

You would certainly know more about this than I, but I was thinking...

It seems there are two types of people who buy adult materials. The type "A" person who doesn't care about your seeing them, talking to them, and knowing who they are. Then the type "B" person, who want to stay as anonymous as possible.

I was reading your reply to pboychuk, and was fascinated that you visit some of your customers like that. It got me thinking.

If you could tailor two methods, type A and type B, custom fit for both types of buyer, you could begin to corner your share of the market.

For the type A, a method that includes a direct level of involvement, the traveling around, shaking hands, dropping off free items, maintaining that social connection that is an integral part of the type A customers willingness to buy.

For the type B method, a website that tracks the purchase records of each customer and offers suggestions for certain types of items based on their purchasing history. These suggestions are not e-mailed, but rather a part of the sign in process for making a purchase. This makes e-mail an option they can utilize or not.

Like I said, you would know why or why not these ideas would work way better than I, but it goes toward giving an example to the point I was illustrating earlier.
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Old 02-22-2008, 08:00 PM   #6 (permalink)
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Hey Mogul, I don't if you've already thought of this but since you're in wholesale; instead of setting up your own site, I would suggest selling to other sites. Adult retail stores seem to be losing their appeal to their target audience since more people prefer to buy them anonymously. And if you do start a site I would suggest a network of sites instead of just one. This would broaden your exposure while holding down your inventory costs.

A.
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