Hi Guys,
Please make this blog exclusive. I won’t be telling people about this blog nor would I put any links from my website to make sure Google index this stuff here cos it’s going to be hard core.
Here come’s the project that I’ve been talking about previously during my last seminar on 14th July 07. A lot of people had been telling me things like…how to create their own product, what product ideas is good…etc
Ok, now I’ve decided to spoon feed you and make your life easier. I will be creating this incredible e-book and making everybody money. How it works is this. We will work on a fundamental priciple here - Leverage.
I will have 101 incredible case studies compiled into a book and launched on 1st Sep 07 and I will allow 101 members of the Internet Empire Community to participate in this project. Each of the 101 participants will come up with an inspirational case study that is anywhere from 2-5 pages (A4 size).
What happened is that all the 101 participants involved will own the Master Resell Rights of the product. What it means is that you cannot change the content, but you get to keep 100% of the profits sold! This has never been done in the World! I told you I mean it when I said I want to grow this community into the largest in the world!
I’ll be the moderator so you can rest assure that this will be a quality product. If you have been sleeping for a while and had not taken action yet, this is your wake up call. Please Please…no biographies…I want good & incredible case studies! There will also be 101 instant testimonials for the product too. Seriously, I’m not bullshitting. It will stop at 101. I seriously hope I don’t need to chip in by writing.
If you’re No.102, sorry then you’re on the waiting list and hope the 101 in the list comes up with nothing good. Otherwise you can wait for Series 2 when all the 101 has already made hundreds, thousands or even tens of thousands of dollars.
Topics of Case Studies:
Must be good. Any industry. Maybe choose one that has impacted your life or business. Closing date for submission of story is 1st Aug 2007. There’s only 101 spots so please make sure you sign up first. You only pay $10 when your case study is confirmed. I reserve the right to remove any of the 101 members and give others a chance if their story is neither inspiring or good.
After which, all the 101 members will co-own the master resell rights of the products. The product will come with professional e-covers and a minisite template. All you need to do is to just change the paypal button. There is also a one-time investment of $10 from each confirmed partipant for the payment of the minisite & e-cover design by John Tan.
Rules of Participation:
1. Nobody is allowed to change the content of the book.
2. Nobody is allowed to give away this book as a Free Gift.
3. Nobody is allowed to change the selling price of the book unless stipulated by me.
Those Interested can start posting on the thread. I will update the list here. Remember there are only 101 places. So start cracking and let me know whether you’re in or out.
<< These are case studies. More like techniques or strategies that was applied on businesses. Try going through the Jay Abraham stuff...e.g.
Certain company used a certain strategy to increase profitability, clientele list, lowered cost…etc. 2-4 Pages of A4 Page Content please. >>
101 Incredible Case Studies Participation List
- Mustafa Bin Ibrahim
- Serene Lim
- Jeannie Lim
- Mike Shelley
- Kelvin Tan
- Thomas Kua
- Alfred Ang
- George Yeo
- Dave Foo
- Christopher Ngooi
- Argus Chng
- Sherry Seow
- Lilian Chia
- Lam Lee Lee
- Dr. Tan Ching Yam
- Kelvin Cho
- Cindy Chua
- Colin Koh
- Alvin Quah
- Linda Seck
- Marcus Lau
- Bryan John Lucas
- Andre Tan
- Suat Lim
- Regina Vallabadoss
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Internet Empire 101 Incredible Case Studies
>>>>>> Case Study 1 <<<<<<
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This is based on a real event that happened in Philippines while I was working in Brother International. All company names has been removed as some of them are listed and reputable firms.
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Never Compete on Pricing
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I had been an avid fan of Jay Abraham for a long time. In one of his videos, Jay was teaching about this strategy. One that strucked me hard till today.
“Never compete on pricing. It’s just telling the world that you’re not GOOD enough!”, Jay said. That went straight into my head. Jay went further to elaborate, by “Competing on Price, it’s just a matter of how low your competitor will go.”
That really rang a bell and immediately, I started reliving the story in Philippines that I heard from my Japanese Director while working with Brother International, the electronics manufacturer.
Here’s how the story goes…
We were exploring opening up the market in Philippines and bringing our printers and faxes into the country. Back then, the market leader was “X Brand” and there were 2 major Distributors. We will just call them Distributor A & Distributor B. Both were really large companies with huge turnovers.
Then came a third player. We’ll just call it “Company C”. What happened was that Distributor A & B had cornered up the market with thousands of retailers pushing the ‘X’ brand of products that they were marketing.
‘X’ Brand was the market leader for inkjet printers. The volume was high, in tens of millions of dollars. Company C was really ambitious and one with deep pockets. One day, the Chief Executive Officer of Company C decided to pay Brand ‘X’ a visit.
He had wanted to negotiable a deal that would make Company C the 3rd Distributor in Philippines. However, he was disappointed at the end of the meeting because Brand ‘X’ had such a good penetration of the market and the fact that Distributor A & B were doing a good job that Company C had nothing much to offer.
Here’s how the pricing goes.
Distributor A & B - Gets Inkjet Printers at $120
Distributor A & B - Sells to Retailers at $150
Consumers get the inkjet printers at $250.
Company C wanted to get the distributor pricing of $120 but was rejected. They were told to get their products from Distributor A & B if they are interested in the business. The Chief Executive thought it through but rejected the offer.
Then he said to Brand ‘X’. Why don’t you sell to me directly, but at the Retailers pricing? Brand ‘X’ agreed to the arrangement and started supplying Company C directly at $150.
Here comes the strategy…
Company C was really agressive and started playing mind games with Distributor A & B. Company C cost for each printer was $150 but decided to sell them to the Retailers for only $120. When that happened, Distributor A & B got stunned. All their retailers, in fact thousands of them started to place their orders from Company C.
Why not, the retailers get to have $30 more margin. That got Distributor A & B thinking. Why is Company C able to sell at $120? If they are selling at $120, they must be getting $100 from Brand ‘X’. With that, they decided to hold an emergency meeting with Brand ‘X’.
Brand ‘X’ told them the truth that Company C was getting from them the products at $150. Distributor A & B thinks Brand ‘X’ was in cahoots with Company C. Disheartened, disappointed and frustrated, they stopped ordering from Brand ‘X’. Their problems didn’t end there. They still have thousands of pieces of stock left in their warehouse.
They decided to sell all their remaining stocks at $120 and after they did that, Distributor A & B decided to pull out of the Inkjet Printer business in Philippines.
Are you lost yet? Why is Company C making a money losing business. For every printer sold, Company C loses $30 but acquires a new retailer. Company C had continued to do so for a whole year. In the process, Company C made a loss of 3 Million Dollars in a single year but gained the whole business.
This continued until finally Distributor A & B had fully cleared their stock and stopped their distribution business in the inkjet business. Finally it was time for the CEO of Company C to pay Brand ‘X’ a visit.
Now with 100% market share and all the retailers network under them, Company C made a bold request from Brand ‘X’. Company C used to get the printers at $150 but now, they want to get $100. On hand they had more than 10,000 pieces of inkjet printers. The CEO was shrewd and told Brand ‘X’ that if they did not comply, they would stop the distribution business for inkjet business. More importantly they would flood the market with really cheap inkjet printers to make sure Brand ‘X’ will be down the drain.
Brand ‘X’ had to agree. After Company C gets the new distribution agreement, they decided to make an immediate announcement to their retailer network. They announced that as of immediate effect, the cost of the printers would be $170 instead of $120. The rosy days were over for the retailers.
Results of this Strategy.
Company C made a loss of 3 Million in the first year.
Company C made record $7.8 Million profit in the following year.
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Moral of the Story
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Know who you are up against. In this Dog Eat Dog World, it’s either you eat them or they eat you. Now you know why you should never compete on pricing because there are always conglomerates with thick pockets that could swallow you up before you even know it.
P.S. - Please don’t send your registration thru email. I need to be tranpsarent so no person cuts in the queue later. Approval based on comments posted. First come first serve! Remember to post your full name as I’ve got lot’s of Michaels’, Peters’ and Stevens. Thanks.
Regards,
Edmund Ng
CEO, President
www.Internet-Empire.com
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