These guys need some competition!!!

**Squandered Halfpints** · 03-14-2009 11:19 PM

There are a couple websites I visit on the regular: whiskeymilitia.com, brociety.com, steepandcheap.com, tramdock.com.

I'd really like to know exactly how their business model works.
-why are they able to sell these products at a huge discount?
-why do they charge so much for S&H, as compared to other online retailers?
-why don't more of these sites exist that target a different market? (maybe there is and I've just never heard of em')

If there is nothing else similar to these sites (which I believe all operate under the same corp.), is there some potential for a mimic in a differnt industry? Is there some hidden potential with this thought???

**BarKeeper** · 03-23-2009 10:49 AM

Thanks for sharing such useful web sites with us!

**Floid** · 03-23-2009 01:10 PM

I think you may have answered (or at least partially) answered your question on why they can offer such huge discounts. They probably hide the true price of the product in the abnormally high S&H charges. Most people look at the price of the item. If they see it as a bargain, a lot of people are more willing to pay a higher S&H without realizing that they make actually be paying more in terms of the total. I know, it doesn't sound rational, but most consumers aren't rational.

I saw this trick being done on eBay a lot, where people will sell an item for some insanely low price, only for the S&H to be insanely high. It's just to fool people and get their attention. Funny part is, it worked.

**mthomas** · 03-23-2009 02:45 PM

I can imagine how this can be done, but is that legal?

**Floid** · 03-23-2009 03:34 PM

I haven't seen anything to indicate it's not legal to do. I guess it's a case of "caveat emptor" (buyer beware).

**GriZzly** · 03-23-2009 04:28 PM

Purchasing Parity. If they are part of a larger umbrella group then they will have the purchasing power to arrange decent rebate terms with suppliers. In my line of work (Building Distribution) I often sell on a negative 5% margin. So I am selling a product for less than it cost me in the first place, but because of my agreed rebate or kickback I might get back 10% thus making a 5% profit.

This doesn't sound like much of a ROS but when you are selling gear that costs many thousands of pounds or in high quantities it soon adds up. The best part is the competitive edge it gives you primarily through fear. If your price point is lower than your competitors purchase cost it puts the fear of God into them with dramatic effect.

**itzpaul** · 03-23-2009 06:17 PM

nice websites. I have no clue how they do that. could be like a ross store kinda deal thing.

**chickenjoe** · 04-01-2009 02:05 AM

The websites are run by the same company. The company that runs it is backcountry.com. Very cool website and thanks for sharing. This has given me some ideas for future use.

**Jenie0109** · 04-01-2009 04:56 AM

Originally Posted by Squandered Halfpints

There are a couple websites I visit on the regular: whiskeymilitia.com, brociety.com, steepandcheap.com, tramdock.com.

I'd really like to know exactly how their business model works.
-why are they able to sell these products at a huge discount?
-why do they charge so much for S&H, as compared to other online retailers?
-why don't more of these sites exist that target a different market? (maybe there is and I've just never heard of em')

If there is nothing else similar to these sites (which I believe all operate under the same corp.), is there some potential for a mimic in a differnt industry? Is there some hidden potential with this thought???

whats the reason doing this kind of investigation?

**HarveyJ** · 04-02-2009 12:40 AM

There are plenty of sites that do this kind of thing in almost every niche.
You just haven't noticed them, and they tend to have stupid names that have very little to do with the actual product. A local one in Australia is zazz.com.au

They work by purchasing in bulk, often at a discounted rate that's been pre-agreed upon with the supplier, as previously mentioned OR they simply purchase "damaged inventory". Basically, during shipping, if a container gets knocked about to much, or water gets in, it's generally easier for the party that purchased the container to simply offload it than wade through the whole thing and do inventory... Well, technically it probably would be worth their time to get someone to do it, but they don't see it that way... So they sell it off to someone else at insanely discounted rates.