this post from trail is spot on!
Anonymous
February 17, 2019 at 8:36 PM
So the new store is down, perhaps it didn't make enough money for shopifys monthly rent fee.
He would probably get more value out of it being down and using that to solicit donations, than any sales if any at all it might make.
The business model was all wrong anyway. High profit margins only work if the supply is low, and the demand is high.
A dynamic he can see in motel prices right now.
The items he was selling at profit margins much greater than even the original manufacturer is making , are all high supply items thanks to internet shopping. Gone are the days when yours was the only shop on high street selling a popular item.
When demand is high for an item in low supply, then yes you can charge extra for it.
No one is going to pay a 30 dollar premium on a 10 dollar phone cover. Did he really think he could make 3 times the profit the actual manufacturer does, for doing absolutely nothing ?
Nor can the volume over margin model work for him since he has virtually no audience.
Anders works for Shopify, Its his job to sell these stores to ppl like Gene and take their cut/store rental.
Perhaps the store is down because they have seen the first months sales or rather total lack of them and figured out he has no audience/customer base.
But the sales model that works in the internet age is to sell 100 items at 2 dollars profit a pop, rather than sell a single item at 200 dollars profit, The latter being the pricing model they are using.
All his store is doing is providing free advertising for those products.
People will always look for the cheapest price on any given product. You could write a book on the ways people game the system on Ebay to get their listings higher up the chain of the "cheapest first" filters.
So the stores will never work, High profit margins over sales volume doesn't work in online retail, where the exact same product for a better price is just a few clicks away. Nor can Volume over margin work because he has no audience/customers in sufficient numbers to make those sales
Naturally he will blame the stalkers and the haters for this failure instead of realizing this get rich scheme was never going to fly in the first place.
As for a paracast store, what he going to sell ? Inflatable alien toys and ghostbuster merch ?
And again little to no audience/customer base.
He can make more money begging, than he will these stores, Their failure at the hands of the haters will at least be a new plot device to elicit sympathy