You may prefer to read that drop shipping is simple, and that it will make you a lot of money. Middlemen drop shippers understand this. They will take advantage of your search for simplicity, by lying to you, and by telling you exactly what you want to hear. The risk is that THEY will end up with your money, while you are left with a worthless opportunity.
This thread aims to warn you about the most common sales pitches used by middlemen drop shippers, and how they attempt to get you to sign up to their services. But first:
What is a middleman drop shipper? A middleman drop shipper is a fake drop shipper that stands between you and the real drop shipper. In doing so, the middleman drop shipper adds a mark up to the price of the products, and often wants a set up fee (usually in exchange for a website). These extra costs make you uncompetitive, especially if you are selling online. Soon you realize you were duped by their claims, and eventually come to the realization that you have to close down the website they sold you because it never was a viable business.
NOTE: Middlemen drop shippers have a canning ability to convince start ups to part from their money. Even if you read this thread in full, you are still at risk of falling for one of the following middleman drop shipper tricks.
If after reading this thread there is one thing in particular you want to remember, it should be this:
Before you pay any drop shipper a joining fee, first think about it 20 times. And then once more. And finally, don't do it.
What follows is a list of sales pitches used by middlemen drop shippers to try to persuade you to pay them a joining fee. Remember that a middleman drop shipper is not the same as an importer or manufacturer that also offers drop shipping. A middleman drop shipper is simply a leach, a parasite that sits between you and the real drop shipper, offering absolutely no added value in the process. In fact, in most cases, they will take value away from you, by marking up prices and overcharging for outdated websites and hosting. Read on for more insight.
Pitch No.1: "Don't worry. Price doesn't matter"
When communicating with a middleman drop shipper, you will often be presented with the following situation:
You: "Why are your prices higher than online retailers? Aren't you supposed to supply at wholesale prices?"
Middleman Drop Shipper: "Don't worry about prices, people don't buy on price, they buy on perceived value"
So far so good, but they are just starting to hook you in.
You: "Ok that's very true, but how do I compete if my prices are higher than everyone else's?"
Middleman Drop Shipper: "Well look at NationalRetailerX, their prices are x% above market rate, yet they are still selling lots"
You: "Ah that's a good point, I didn't think of that!"
This is where the middleman has got you in their grasp.
The truth, Wholesale Forum friend, is that when you are small, and you don't have hundreds of physical stores or tens of thousands of visitors to your site each month, you must offer additional incentives to your visitors before they will buy from you. And one of those incentives is price.
National retailers attract far more buyers than you will ever be able to as a small business. They can demand higher prices because they are conveniently positioned, you on the other hand have to fight hard to get people through your storefront or visitors to your site. And one way to fight hard and attract visitors is to offer good prices. You can advertise all your profits away, but if you are not convenient no one will buy from you, especially online.
Therefore the next time a drop shipper gives you this pitch, walk away. Price and desirability of a product are the two factors you want from your drop shipper. If a drop shipper gives you any sign that they are not satisfying either requirement, walk away, you'll be richer for it.
This thread aims to warn you about the most common sales pitches used by middlemen drop shippers, and how they attempt to get you to sign up to their services. But first:
NOTE: Middlemen drop shippers have a canning ability to convince start ups to part from their money. Even if you read this thread in full, you are still at risk of falling for one of the following middleman drop shipper tricks.
If after reading this thread there is one thing in particular you want to remember, it should be this:
Before you pay any drop shipper a joining fee, first think about it 20 times. And then once more. And finally, don't do it.
What follows is a list of sales pitches used by middlemen drop shippers to try to persuade you to pay them a joining fee. Remember that a middleman drop shipper is not the same as an importer or manufacturer that also offers drop shipping. A middleman drop shipper is simply a leach, a parasite that sits between you and the real drop shipper, offering absolutely no added value in the process. In fact, in most cases, they will take value away from you, by marking up prices and overcharging for outdated websites and hosting. Read on for more insight.
When communicating with a middleman drop shipper, you will often be presented with the following situation:
You: "Why are your prices higher than online retailers? Aren't you supposed to supply at wholesale prices?"
Middleman Drop Shipper: "Don't worry about prices, people don't buy on price, they buy on perceived value"
So far so good, but they are just starting to hook you in.
You: "Ok that's very true, but how do I compete if my prices are higher than everyone else's?"
Middleman Drop Shipper: "Well look at NationalRetailerX, their prices are x% above market rate, yet they are still selling lots"
You: "Ah that's a good point, I didn't think of that!"
This is where the middleman has got you in their grasp.
The truth, Wholesale Forum friend, is that when you are small, and you don't have hundreds of physical stores or tens of thousands of visitors to your site each month, you must offer additional incentives to your visitors before they will buy from you. And one of those incentives is price.
Therefore the next time a drop shipper gives you this pitch, walk away. Price and desirability of a product are the two factors you want from your drop shipper. If a drop shipper gives you any sign that they are not satisfying either requirement, walk away, you'll be richer for it.
No comments:
Post a Comment