Good Business Question

by | Oct 8, 2002 | Archives

A reader sent a really intelligent question about how markets are going to unfold. Our eclub reply can be valuable for you.

Here is what this reader wrote:

	"Hello, Gary		"Given your experience in delivering the International Business Made 	EZ course, I imagine you have direct insight into this inquiry! I'm 	reviewing the Wade Trade Import/Export Home Study Course billed as the 	'World's finest Import/Export Course, established 1946.' 	"Advertisements for this course can be found in many newspapers and 	business magazines worldwide. I have a brief question I would be 	interested in learning of your and/or your network's opinion please.		"I have a challenge understanding the commercial 'real world' validity 	of this opportunity.. nice lead, nice dream to market, but reality?		"Why on earth would a manufacturer of goods/services bother going 	through an agent using for example, their online CyberTrade Centre, 	when clearly they can cut out the middle person - the agent - and 	simply go direct to potential clients… the same clients these agents 	apparently find for the manufacturer's goods/services.		"The proposition just doesn't seem 'real world'. For example, take 	physical commodities trading. Real world, in the world's global 	financial centers like London, New York, etc., there are professional, 	global commodity trading houses and similar units within global 	investment banks, specializing in sourcing, buying, selling and 	delivering commodities in the marketplace... backed up with real 	internal infrastructure, highly paid professionals, track record etc. 	Where on earth does a sole agent really fit into this business with 	credibility and value added input? Any insights as to the real angle 	of this, of what otherwise is a very interesting business, would be 	appreciated.		"Thanks in advance for your consideration of this inquiry."

The first reply to this question came from eClub advisor Steve Rosberg who wrote:

	"This is a very valid point. To be able to sell anything, there are 	certain necessary conditions to be met: - whoever sells, needs to know 	his product - the parties must know and rely on each other. Middlemen 	(brokers) Do provide these services, if they are good. They will know 	customers who trust them, and before introducing a new supplier, they 	will go to the trouble of determining whether he is reliable, can 	deliver, and so on. They also may have insight into market prospects 	attained through their being in touch with so many different parties. 	And yes, there is no way in which a website listing will provide 	anything remotely comparable. Our experience is that website listings 	will draw a lot of nuisance inquiries. And, if you are lucky, maybe a 	valuable one from time to time. There simply is no substitute for 	focused marketing, as Gary (Scott) hammers home in all his courses. 	Have a good day, all the best, Steve "	

Steve is right on the mark.

I do not know the course itself but do believe that we are in an era when intermediaries are becoming cut out. Yet the less mankind has of something, the more it is wanted. When central heating was perfected, everyone wanted a fireplace. When the highways were perfectly smoothed, the most popular car became the off road four wheel drive SUV! The more people can find at the Internet the more they need someone to trust to help them walk through the process of buying. Manufactures have to compete harder because their competitors are also on the Internet! So the real world is not whether middlemen will still be needed, but how will middlemen learn to use the Internet to enhance what they do.

Importing and exporting will change and evolve but the factors of trust required in business will remain the same.

May all you business be good and full of trust!