The most exciting part of this business model is that we can create a unique and sustainable product at a fairly low cost. At the same time, we have few direct competitors. There are many third party sites which sell second hand electronics, but none of them add any value to the product itself. Because most our capital will be going towards the housing of our products, we feel that the “specialty” angle would be best for how we scale our business. A big play we intend to pursue in the future is to work with brands and artists for them to put their own spin on the design, which will create a very attractive and highly marketable product. The most obvious roadblock for us currently is the cost of training new workers. When we begin working with a new company, we must retrain our workers to understand the hardware of each returned product we work with. We anticipate that the best solution for this would be to either train them ourselves or subcontract the training to a third party.
Returns bog down supply chains for all businesses, but for electronics companies it is especially damaging. This is because electronics returns must be assessed and tested for defective hardware. At the same time, the business has to pay extra to house the electronics in a climate controlled space for quality control purposes on top of cost of refurbishment. Because of this cost, most businesses throw away their returns, and so it can be argued that our products help the environment as well.
What I Will Do With $5,000
As detailed in the question, “What are the juicy details of your idea?”, one of our big plays is to get brands/artists involved in the design of the housing for our products. With the money, we’ll be able to commission artists or find brands to empower artists in making a highly attractive and unique product. I believe that not only will this money help us make a better product, but it will also help represent talented artists and designers to get their foot through the door in their industry.