Egaragesale

1. Egaragesale.com By: Robert Day Alicia Foschini Jeremy Orlin Janet Paley Sunny Shewakramani

2. What are we? • An online community of users that can post and purchase goods from other users. Our company focuses on selling items that would usually be found at garage sales. Whether it may be an antique rocking chair to vintage vinyl records, this would be the most convenient medium to search.

3. Who are we? This company is an equal partnership • Jeremy Orlin- President of Finance • Janet Paley- President of Marketing • Sunny Shewakramani- President of Information Technology • Robert Day- President of Sales • Alicia Foschini- President of Human Resources

4. How it works • A user can post any item they wish to sell, at no cost for other users to browse the website. • When a user finds an item they would like to purchase, they can privately send the seller a direct message to negotiate a price. • The seller has previously agreed when entering a contract with Egaragesale.com to not sell any items below a certain requested price.

5. Egaragesale.com, is not an auction, there is only direct contact with the seller. Lower fees (no price for posting an ad, lower percentage of sale price-5%). No time span from when the item is posted to when the item is sold. Auction, very informal, there is no direct contact between the buyer and seller, other then email which can take a while. High Fees (a fee to post and a fee of 5.25% on final sale) Certain time limits when an item is posted to when an item is sold. Egaragesale.com vs Ebay

6. Competition Ebay: • Founded in 1995 by Pierre Omidyar, first called “AuctionWeb” • Most popular form of auction on the web • To post something for sale on ebay, a buyer pays between $.25 cents to $5.00 for a basic ad. • The more detailed your Ad the more expensive it will be • Takes 5.25% cut off of any sold item • Ebay is by far the largest threat to Egaragesale.com in terms of market share.

7. Competition Yahoo: • Launched un September 1998, Yahoo! Auctions is an online auctioning website powered byYahoo! Inc. • Within a year of its launch, Yahoo! Auctions had established international versions of the website in countries such as: France, Germany, Australia, New Zealand and Singapore. • In order to post an item for auction a listing fee must be paid.

8. Competition Amazon: • Based in Seattle, Washington, Amazon was launched in 1995 as one of the first major companies to sell goods over the internet. • It also owns Alexa Internet, a9.com, and the Internet Movie Database (IMDB.com) • Amazon offers access to its catalog via web services, much as Google does to its search engine. • a9.com provides search engine services directly on the Amazon.com site. • Amazon.com began as an online book-selling company but has now branched off into many other areas, including DVDs, music CDs, computer software, video games, electronics, apparel, furniture, and more.

9. Competition Overstock.com: • Overstock.com is an online "closeout" retailer offering discount, name-brand merchandise for sale over the Internet. • The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers a global distribution channel. • Overstock.com relies on 70 SUSE Linux servers to serve approximately seven million visitors per month with maximum uptime.

10. Start up Costs • Mortgage Deposit- $1,500 • Insurance- $1,000 • Equipment- $10,000 • Supplies- $1,000 • Legal- $2,500 • Utilities- $1,000 • Other- $1,000 • Total Start up- $18,000

11. Monthly Expenses • Rent- $1,500 • Loan Payments- $1,000 • Salaries- $15,000 • Marketing- $5,000 • Insurance- $1,000 • Utilities- $500 • Other- $1,000 • Total $25,000

12. Breakeven Analysis • Variable Cost $5.50per unit • Fixed Cost $25,000.00 • Expected Sales 25,000 units • Price $10.00 per unit • Total Revenue $250,000.00 • Total Variable Costs $137,500.00 • Profit $87,500.00 • Breakeven Point- 5556 Units

13. Hardware • If you buy, from a variety of different vendors around the internet, all the functionality that this online website builder offers in a single package, it will cost you thousands of dollars a year, and you'll still be missing unique functionality. • For example, here is how our website struggles for traffic from the free search engines - the most valuable traffic because it is free and it produces interest and is willing to buy visitors. • Brainstorming • WorldSubmitter • SpiderWatcher

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17. Target Market • Market Geography • Market Size • Market Density • Market Behavior

18. Market Geography • Market geography refers to the geographical extent of markets and where they are located. • Egaragesale.com is an online market that reached those around the world or those who have internet access. • The consumers search Egaragesale.com to find what they are looking for.

19. The market size refers to the number of buyers or potential buyers (consumer or industrial) in a given market. Egaragesale.com reaches everyone that is of legal consent to purchase an item. The age to legally use Egaragesale.com Ranges from 18+, people who are able to make payments with credit/debit cards, and money orders. Market Size

20. Market Density • Market Density refers to the number of buyers or potential buyers per unit of geographical area. • The major strategic implication of this discussion is that the opportunity to achieve a relatively high level of customer access at low cost is higher in dense markets than in more dispersed ones. • Those who are accessing the website are people of different races, backgrounds, and cultures. • The people consist of those who have high school equivalency, college degrees, or those who have well paid jobs and great careers.

21. Market Behavior • Egaragesale.com, give the consumer a choice of low end prices. • You have low prices that you can’t find anywhere else, and products that do not exist on the market anymore. • With Egarage.com you are negotiating a price within a reasonable quota for an item. • This allows the consumer to feel comfortable with the transaction. • Smooth transactions = great feedback

22. Marketing Techniques • Advertising • Television • Radio • Print Ads • Internet • Coupons/Giveaways • Word of Mouth

23. Advertising • Television • Commercials are the most influential medium for advertising • Expensive but worth the cost in the long run • Start with 30 second ads • One during daytime talk shows and soap operas to attract middle age housewife's. • One on MTV to attract the college age market

24. Advertising • Radio • Small commercials during rush hour • Try to get an interview on a popular radio show to explain how Egaragesale.com works • Print Ads • Ads in local/college newspapers • Internet • Sponsored link on Google directing you to our page

25. Coupons/Giveaways • Along with all print ads there will be coupons offering a discount for first time purchases. • All first time users get their first purchase with free shipping. • Any user who is directed to our website through a link on another website will have a discount on their first purchase.

26. Coupons/Giveaways • Hire students on college campuses to hand out flyers to passing students informing them of Egaragesale.com and offering discounts. • Post flyers in supermarkets and populated areas

27. Word of Mouth • Strongest and cheapest form of advertising • Most people will go to Egaragesale.com, because they heard of it from other people. • This is out of our hands, we only hope that by putting effort in the other marketing areas that this one will succeed on its own.

28. Our Website • http://www.pages.drexel.edu/~amf39/index.htm