01 August 2007
Question: I spoke w/ ***EDIT*** yesterday and they advised me to complete their credit app, mail it in to them, and a sales rep will contact me to set up my account. My question is this: Once he or she does contact me, is there anything you would advise me to say - or not say, for that matter - to assist me in getting the best possible pricing I can from them? I do already have my tax #, business license, and Federal EIN #, as well as a dedicated phone # and fax #, so I present a professional appearance in those regards. Is there anything else you could suggest?
The most important thing is to be professional. If you present yourself as a new business, you'll be treated like a new business. If you present yourself as an established business that is new to dvd sales, most wholesale companies will take you more seriously.
I'm not an English major and couldn't beat many 4th graders in a spelling contest, but I know how to use Spell Checker. If you are filling out wholesale applications and writing emails to suppliers, make sure to double check your spelling. I am amazed at some of the wholesale applications I get that appear to be written by a 6 year old.
Most large wholesalers will take the time to call you before opening up your account. Don't be caught off guard. Be prepared to discuss your business plan. What venue do plan to use? What types of movies are you going to sell? What type of volume do you expect? How long have you been in business?
Good Luck,
Brent Crouch
01 August 2007
Question: I was just wondering if it is better to start the dvds off at $.01, $.99 or have it up for buy it now?? which one is a better way guarantee to sell dvd's? or is there a way you do it that i could??
Jayandmarie is one of ebay's top seller. They have built a niche around offering used cds at starting bids of only 1 cent. They have been very successful with this pricing strategy.
Moviemarz is another one of ebay's top sellers. They use a very different pricing strategy. This seller uses a higher starting bid that are probably below his wholesale costs. He easily makes up the difference from his inflated shipping and handling. It only costs $1.50 to ship a single dvd to most locations. This seller charges his customers $5.50 netting him an average profit of $4 from the shipping and handling alone.
I personally use a method similar to Moviemarz. I use a starting bid that is $1 - $3 more than my wholesale cost. I also have a shipping and handling fee that allows me to make an additional $2 - $3 on every dvd.
My advice to new sellers is to try a couple different approaches and test your results. What works for a top seller may or may not work for you. Don't be afraid to start. If you don't like your results, try something different.
Good Luck,
Brent crouch
27 July 2007
As one of my bonuses, I offer a copy of the letter I wrote to a top dvd wholesaler when I was starting out. I attached this letter to my application and was rewarded with very good pricing. Matter of fact, it was less than the price being paid by the guy who sold me the contact info. He wasn't very happy about this
I've been asked a few times about this letter. Most people want to copy it exactly. Others want to know what they should put in their own letter.
First, don't copy my letter. It wouldn't be of much benefit if every wholesaler on my list got a copy of the same letter 10 times every week. Simply use my letter as a guide to write your own letter. You should consider including a history of your company, your sales channels, and your expected volume. If you aren't comfortable listing some of these things, don't worry. Remember, the letter isn't even required.
Good Luck,
Brent Crouch
27 July 2007
Here is the short of it. I have two answers for this question, no and yes.
The actual costs of building and maintaining an e-commerce website is very reasonable. I have sites that generate six figure sales volume every year and cost less than $100 a year to maintain. However, if you are new to e-commerce, the last thing I recommend is setting up your own site.
"If you build it, they will come", only applies to Kevin Costner, dead baseball players, and Iowa cornfields. It doesn't apply to e-commerce sites and internet businesses. If you know a little HTML and can install and configure a shopping cart, you shouldn't have any problem building a website. The problem is how are you going to let the world know your site exists?
Learning to market a website and convert those visitors into sales can be a real challenge. It should be one of your goals, but isn't something most people will master right away. If you want to generate immediate income for your business, the best place to start is Ebay. There isn't another auction site that can generate more bang for your buck. It is an excellent place to start your business.
Just because you aren't going to setup an e-commerce website right away doesn't mean you shouldn't reserve your website. I highly recommend
IX Web Hosting's Top Rated $3.95/mo plan. It will give you the chance to reserve your business domain name, setup a business email, add extra pics to your ebay auctions for free, and become familiar with a web hosting interface. As your business grows, you'll already have everything in place to start your website.
Good Luck with your business,
Brent Crouch

24 July 2007
I'm amazed at the number of people that email me each week intimidated by the idea of getting a business license. Many have no idea of where to even start.
There is no set fees, license type, or requirements that apply to everyone in every jurisdiction. The process of getting a business license is determined at the local level. Every county can have different requirements and fees. I paid a fee of $20 and filled out a one page form to get my business license. In my case, the process was pretty painless.
The Small Business Administration has an excellent web page titled How to Obtain a Business License. This page contains links to every state and is the perfect place to start.
You should check with your local representatives to make sure you qualify for a business license. If you are going to be working from your home, some local governments may have restrictions on what type of business you can open. If you are going to open a business like a restaurant, hair salon, or real estate firm, there maybe even more requirements.
In most situations, the process is very inexpensive and is pretty straight forward.