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Losing to Make Money

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  • Description

    1SaleADay.com Founder Ben Federman discusses how he is revolutionizing flash retail.

  • Duration 5:31
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Illicit money on purpose doesn't sound like a business plan right but David -- about a man who did just that and his -- plan.

Is led to huge success 28 year old and fadiman is the -- CEO one sale a day dot com.

It's a retail site that racked up tens of billions in revenue last year.

Actual retail is what this concept.

Is called Telus Telus describe it force what is flash retail.

Well I'll tell you where daily deal website called once ability dot com we offer.

One -- for a 24 hour time period.

And this -- -- that deal expires the next deals put up we have multiple categories.

Such as wireless -- tech electronics which is our main site.

Jewelry and household.

One thing they -- all have in common is that items are generally offered between eighty to 95% off.

The retail price just one of those effigy is a loss leader that is you lose money but you bring customers.

Well at this point we do initially when we -- the business the idea was.

You know we can only sell us a small amount to let's say 234500.

Units at that point we have to lose money in order really.

Bringing a customer to the site and hold on is a because you you lost money that was your that was out of your pocket right -- did you take injured Max out your credit cards or pay for that.

I did yes -- Max -- all my credit cards but as many -- people would offer and -- recently -- about it paid off.

Correct yes I think I did and so an issue that's how was I it was started with saying listen if I -- by 101000 of one item.

To get that price that I need to really.

You don't have the -- at 90% off retail -- -- 200 or 500 itself low cost.

Now we're at a point where we're buying 101000 TomTom units were actually by far more than that.

And and were able to buy at a price -- we can sell for 39 and still turn a nice profit but do you do you hold these items you have a warehouse in which all the stuff is held.

We sure do yes we buy -- we we've kind of we have industry leading buying team kind of zones and -- certain items.

Buys them large volume 102030000.

Even we put him in the warehouse we do some quality control testing.

That we get the creative folks and our people to particularly images right up the up.

Descriptions and we feature of the week calculator by the way I'm looking at another item here a Cuisinart I -- a whole collection -- from Greece are not -- Individual knives -- -- for 4050 barks.

How much is this whole set of 99 -- going for.

Well the set weeks we sold in the past for 29 -- -- nine.

And it's out of markets -- -- stop -- are not talking about and -- I don't knock offs are right.

-- these are real and I'll tell you the manufactures some initially we were chasing all the manufactures vendors to find these deals.

But we've kind of -- up what where they're actually chasing us.

And looking for you know for -- the -- their deals and we don't -- effect that the target market price.

Because -- featuring -- for one specific day.

Now at midnight the deal expires so it doesn't really affect all the other retailers like Circuit City Best Buy whatever.

It's only up for one day -- manufactures accepted and they can on -- a lot of merchandise on us that way this week and for example.

We sold a 109000.

Of one -- Units and by the way this is this is it's not just electronics her at -- you have I have a ring in my hand this is.

I guess real style real sapphire right.

Correct yeah we initially started with electronics and -- that's what I know best I'm a kind of a self proclaimed gadget geek anonymous and has been added the demands you know that we put up a watch one day on the main site and customers remind us and we'd love to have watches featured.

And we do we always we this and our customers like cash for like I would think that Ashford would be really upset that your doing it because that's -- into their business right.

You would think but -- I wouldn't think so because we're only offer that item for one day they're offering regular line items.

And that's really a big part of how we're able to do what we do because you look at other stores like you know Amazon they're selling.

A 100000 difference feuds and they can move that they of one or 200 at each were offering wants specific unit and will move 101000 is -- -- unit.

So it's very quickly though there must if it's a great concept making millions there must be competitors are snippet -- your heels right.

Not really know we're you know when will we by the that's the usually close up a lots and by the entire a lot so.

Nobody else is really off and anywhere near our price again like if you're -- fellas relationships when you develop relationships with the folks.

That becomes -- that's still very important businesses and actually and what you would think our competitors really -- are deals because.

That's -- TomTom that was up 39 you about it Best Buy for 109 yes so they're just supporting our deal.

By showing how great are up prices really are by the way you never gave me a price and is ring how much is this ring.

8999 hello mistaken.

89 unbelievable OK well best of what it are -- hiring -- or are you -- that on hold with Jessica.

No no -- we're hiring were growing -- continues to bring in more program you know.

Developing each department and expanding absolutely man who's hiring Americans and He still in his -- folks and by the way -- I don't wanna.

Advertisers too much but we're -- high school dropout.

Middle school drop but actually yes -- Holy -- well congratulation -- proud of it but it's has -- -- part of the fact is right Fiat you can do a lot if you have the right gumption Ben -- been great to see event.

It's called one sale a day dot com one.

The number one -- and over -- room and Roman numeral one and then sale would a day dot com thank you for coming have been appreciate your best of -- you have me Dave.

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