So like I stated in my recent posts, I've been looking into this company called Market America. They're a home based business that provides a legitimate plan B. I recently went to one of their meetings to see their business presentation live. They talked about many things but one topic that stuck with me is they claim to be a product brokerage company. Now I have to be honest and say that I've never heard of this term. So despite what they told me I looked it up on the Internet.
As I was searching out the term product brokerage one thing became clear......this is relatively a new concept. Many of our nations big chain retail stores are product brokers. Product brokers are business or people that move a manufactured product to the end consumer. However these business do not manufacture these products. Now why would a company that manufactures a superior product use a "middle man" to move its products?
For example lets use Dell. Dell computers and other products are everywhere. They use product brokers to move their merchandise. By using product brokers they eliminate the burden that comes with owning and operating a brick and mortar store front. Huge expenses like employees and utilities are erased because there is no store.
However, being a product broker yields more profit. As a product broker immediately you save money because you do not manufacture a single product. This allows you to use more funds which results in superior researching and quality assurance. One chief objective of a product broker is to identify the latest market-driven products. Which in turn allows you to move with the marketplace. As a result, you will never go out of business. Let me say that again, YOU WILL NEVER GO OUT OF BUSINESS. Another great attribute is that you do not rely solely on the sales of any one product or service.
Some example of product brokers are Best Buy and Home Depot. They are successful in part because they own most of their retail buildings, but more so because they don't manufacture anything. If a particular product is not doing well or has quality assurance issues, they simply send everything back to the manufacturer at no cost to them.
Now I see why Market America and its independent distributors are so happy at these meetings. How good the feeling must be to know before hand that you as a company will never go out of business.
Sunday, September 7, 2008
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