gcollins
One of the Regulars
- Messages
- 270
- Location
- Shanghai, China
I think Bob is right about that: There is seems to be some consensus around what is labelled fino vs. fino fino, but the problem is not different from the XXX in beaver problem, and in fact it's even more complicated. It's just that the internet sales people selling monticristis sell a weave count, color consistency, or row evenness will sell a hat more expensively than Bob, which Bob will often point out. But the service attitude needed by the aficionado (who else would pay big bucks for a simple straw hat?) and the business model leverage of knowing the customer's need is what's missing.
More specifically, Bob has a clear price advantage as a vendor (which really irks his competitors to no end, a great and most key advantage), but three very striking disadvantages:
1. He lashes out at potential customers (and competitors--always bad face) that don't buy his hats and instead choose among his competitors, like Casey.
2. As a middleman, he does not have many bodies in stock in the US. He'll order the hat from Ecuador when you order from him. The disadvantage is that he cannot establish a rapport with the customer by being able to personally choose the hat according to the many trade-offs one might want in a hat for a given price point. Both Bob and the customer don't know what to expect, other than the base specs which vary widely in quality. Need some inventory and FCF to make this work.
3. No good in-house blocking.
For you MBAs out there, this is a free case study....If Bob can work on the above, he is a clear winner and will put some others out of business, if he isn't asassinated first by them. If he paid more to the best weavers than anyone else (the ONLY way to help the best weavers--paying basic wages for low-end weaves doesn't keep the art alive), and still get the most cost effective hat to the customer, blocked very well as they want, and make them feel happy to give him their credit card a second time. With a bit of saavy marketing, there would no longer be credible internet competitors, and Bob could make pains to say how good their hats were and celebrate the fine gentlemen that they in fact are. And Bob would clean house--good for the customer, good for Bob's wealth generation, very good for the weavers.
Do it, Robert! Everyone can win, and you're the only guy who can do it!
I'd invest in that business model.
Regards,
G
More specifically, Bob has a clear price advantage as a vendor (which really irks his competitors to no end, a great and most key advantage), but three very striking disadvantages:
1. He lashes out at potential customers (and competitors--always bad face) that don't buy his hats and instead choose among his competitors, like Casey.
2. As a middleman, he does not have many bodies in stock in the US. He'll order the hat from Ecuador when you order from him. The disadvantage is that he cannot establish a rapport with the customer by being able to personally choose the hat according to the many trade-offs one might want in a hat for a given price point. Both Bob and the customer don't know what to expect, other than the base specs which vary widely in quality. Need some inventory and FCF to make this work.
3. No good in-house blocking.
For you MBAs out there, this is a free case study....If Bob can work on the above, he is a clear winner and will put some others out of business, if he isn't asassinated first by them. If he paid more to the best weavers than anyone else (the ONLY way to help the best weavers--paying basic wages for low-end weaves doesn't keep the art alive), and still get the most cost effective hat to the customer, blocked very well as they want, and make them feel happy to give him their credit card a second time. With a bit of saavy marketing, there would no longer be credible internet competitors, and Bob could make pains to say how good their hats were and celebrate the fine gentlemen that they in fact are. And Bob would clean house--good for the customer, good for Bob's wealth generation, very good for the weavers.
Do it, Robert! Everyone can win, and you're the only guy who can do it!
I'd invest in that business model.
Regards,
G