One has to wonder as they watch folks sell their wares on the Internet if they can compete against a Wal-Mart Price Point? Sure there is little cost if you operate a home business and work on the Internet, but also realize that the economies of scale are so vast that Wal-Mart still has the advantage. Of course if you are willing to grow your business and provide huge inflows of cash infusions then perhaps you can sell your products at Wal-Mart its self?
Of course most entrepreneurs hesitate at such a thought because they know they have to bring their costs down significantly in order to impress the Wal-Mart or major brick and mortar store buyers and purchasing agents. Most entrepreneurs do not believe they could come up with a product that could compete at the Wal-Mart Price Points.
As a case study lets say you are selling automotive detailing supply kits. Do you sell them online and try your best or do you go-for-it and sell them through the major distribution system for all products in the US with over 188,000 skews? Most Entrepreneurs will say they just will not be able to do it; I can’t.
Well you could but if you believe you can’t you are right of course. It is a matter of cheap plastic bottles, bulk purchasing, FCS models for manufacturing, streamlined business model, upfront capital and such. It is a big man’s game, but if you really want it; you could go get’r done.
Of course selling online is easier, but indeed there are no guarantees either, most businesses online do not turn a profit of course and thus at some point like one online entrepreneur pointed out; Do I keep throwing good money after bad? I certainly hope this discussion and case study was worth your time and more importantly I hope it did indeed propel thoug