Online Buying and Selling Antiques Store:
The business model created is an online antique store that primarily deals in the buying and selling of antiques to collectors. Numerous collectors around the world face the problem of locating antiques for sale or finding the right buyer to sell antiques to. The business will be aimed at connecting sellers of antiques to buyers. However, it will offer an additional service for those buying the antiques. It will ensure that the antiques are authenticated and confirmed to be genuine. This will ensure that customers get the greatest value for their money and prevent cases of customers being conned into buying fake antiques. In addition, this will help build the reputation of the online store within the collectors market as a store that delivers high-quality products for its customer base. The key partners of the business will therefore be the owners of the business, collectors of antiques (buyers and seller), and antique experts.
The owner of the business will provide the startup capital for developing the online store, collectors will form both the buyers and sellers on the store and antique experts will help authenticate the items being sold. The customer value created is that the store will help find and authenticate any antiques that a customer may desire. The store also helps to deliver what a customer purchases to selected addresses. In addition, it helps sellers to find buyers for their products. The main revenue stream for the business will emanate from direct sales on the online store. A combination of fixed and dynamic pricing is expected to be used. For the dynamic pricing, customers expected to use a bidding service to offer different prices for the items on sale.
KEY PLAYERS
These are the people or the workforce in the antique shop, they all play a vitally important role in running the company. The antique shop will have the following key players:
The manager
Managers have played the functions such as planning, coordinating, controlling as well as organizing to ensure success.
The Assistant manager
Performs all the duties of a as will be delegated by the manager.
Directors are the policymakers of any firm.
Public Relations Officers
This plays a significant in ensuring that the company is known and it’s productive by ensuring keeping pace with the current marketing trends.
Company workers
Work in every section to help achieve the company’s goal.
Key Activities
The antique shop will apply several key activities in ensuring they get the best items and ones that can be sold at a valuable cost. This involves:
Buying, collecting, and outsourcing of antiques.
Refurbishing and repairing of items to be sold as antiques.
Online marketing and buying of antiques: The marketing team will be on the alert to see any valuable antiques that can be sold at a cheaper price and buy them so that the company can sell them to other consumers
Key Resources
Auctions
Estate sales
Searching flea markets
Garage sale
Value Propositions
Value propositions are offered to:
- Customers-They help in sustaining the company
- Employees-They help in running the company
- Suppliers- They supply goods to the company
- Partners- They help in funding and giving directions to the antique shop
Customer Relationships
Customer relations is our important agenda, it helps in creating a warm spirit of togetherness between the antique shop and the customers, through good customer relations the company will run smoothly because customers are satisfied with the products offered. Employ the use of appealing search engines on your web to facilitate the accessibility of your products online.
We value our esteemed customers: selling quality goods
We also offer after-sales facilities: To ensure that customers find it easier to take goods home
Customers are encouraged to bring goods back if they damaged to maintain a mutual relationship
Customer Segments
Geographic segmentation: Africa, America, Europe, Asia
Behavioral segmentation is done in regard to the culture of the customers
Segmentation by benefits this is done in view of expected effective demand availability hence more sale volume
Channels
Antique dealers: Those specialized in antiques are collectors and the sellers of antique items that can either be furniture.
Retail dealers: those selling goods as retailers
Revenue Streams
Sales revenue these are revenues that will accrue to the antique firma as a result of the sale of its product say furniture.
They also benefit from the revenues earned through the auction. This has also formed a bigger percentage of the revenues accruing to the Antique firm.
The table below shows the revenues earned by the firm in 2012
| Item
Secondhand clothing Secondhand furniture Secondhand computer accessories Secondhand shoes Other secondhand items total revenues collected
|
Revenue
$509.00 million $233.70 million $221.40 million $153.40 million $167.90 million $1285.40 million
|
Another benefit of online selling is the reduced cost of moving goods from one place to another which could further expand the cost structure.
Antique goods are goods that are highly durable, they are thus able to appreciate hence making profits.
Volume and unit sell: Amounts sold per given time scale
Sponsorship and co-marketing
Transaction costs are those that are agreed upon when undertaking the sale as well as the purchase of antiques.
Fixed costs imply the initial costs of developing the antique shop, opening the web as well as the cost for paying the workers. Not dependent on the outcome of goods produced
Operating costs are those costs that are incurred on a daily basis running of the business. This is the most cost that affects online antiquing as it is subjected to daily marketing. Developing good search engines and ensuring that the company remains relevant in the eye of its customer.
Marginal costs are felt on producing one more extra unit of product.
Risk costs are those costs that result from fraudulent and scamming activities. These costs pose a greater threat to the company and as the company might be adversely are affected.
Antiquing costs are those costs that will occur to the firm as a result of purchasing fake goods made through antiquing by disloyal dealers.
The table below shows cost apportionment for the antique firm in 2012
| Cost category
Fixed costs Variable costs Operating costs Risk costs Total cost
|
Amount
$8.90 billion $2.14 billion $4.20 million $ 2.01 million $17.25 million |