IN SIMPLE TERMS "WHAT IS TRADERSPOINT"?
TradersPoint is a unique procurement system that combines the purchasing power of individual small businesses world-wide in a united effort to enjoy and profit from the many benefits of true large volume purchasing direct from global manufacturers. The system that accomplishes this is simple,
YOU SAY "SMALL BUSINESS"BUT DON'T THEY ALREADY BUY FROM WHOLESALERS AND DISTRIBUTORS AND COMPANIES LIKE THAT?
They do and that's what SMORCO calls the standard and outdated way of marketing. It's been the standard way of buying and selling from the time of the ancient caravans and it's outdated because in today's fast moving economy there just happens to be a better alternative for smaller businesses looking to increase their buying power and profit margin.
SO WHAT'S WRONG WITH THE OLD WAY?
Nothing! if you're a big chain and have a well financed purchasing department. Wal-Mart, Target, Sears, they all think its great. Unfortunately for the smaller guy who doesn't have the big pockets he's forced to stand by and watch the old standard and outdated method constantly repeat itself, which always dictates "The Big Buy Big and get Bigger While the Small Buy Small and Stay Small.
SO THE SECRET TO HAVING A SUCCESSFUL BUSINESS IS JUST TO BUY MORE?
No, all successful businesses get that way by having smart competent management and excellent business knowledge of their products, markets, and competition. The key word here being "competition". Because unless a small business can buy competitively and sell competitively in their local marketplace they're most often doomed to stay small no matter how good the management or service.
AND HERE'S AN ADDITIONAL ANSWER ON THAT QUESTION
There will probably always be superstores. Competitive buying will never be the demise of the large chains, its just the nature of the beast. Just because a small business can buy and sell at a competitive price doesn't mean he strives to be the next Goliath in retailing. But joe public down on anywhere street should be able to sell me a widget just as competitively priced as the big chain store ten miles down the road. Now maybe I'll want to drive the ten miles because I like the variety offered or the other attractions of a large store but my decision shouldn't have to be based just on price.
INTERESTING! BUT HOW DOES JOINING TRADERSPOINT HELP THESE SMALL BUSINESSES COMPETE BETTER?
By utilizing the inherent buying power of large group purchasing. Our unique system allows small volume buyers to buy into large volume consolidated purchases direct from the manufacturer. A system that assures small businesses they're buying at the absolute lowest prices possible in a setting that is simple, safe and secure.
How would you describe traderspoint? is it like an auction or online classified ad service?
No! Totally unlike Ebay, Craigslist, classified ads or even trade listing services, TradersPoint is unique in its operation. For instance: Only manufacturers can list products on TradersPoint and they are allowed only one specially selected product at any onetime. Also, all listing on TradersPoint are time sensitive. Every listing has a beginning and an ending date. There are no expired or out-of-date listing on our service.
So traderspoint is mainly for manufacturers?
No, manufacturers and small business buyers will both find our service mutually beneficial. Manufacturers will be thrilled with the extra large orders our system is capable of producing and small business buyers will be able to buy in small quantities at huge factory order prices.
So now you’re going to tell us that TradersPoint is the perfect solution?
No not perfect. The perfect solution would be if manufacturers were able to profitably fill small orders from buyers at the same price cuts as larger buyers receive. Unfortunately this is not the case. It costs a factory more to fill a small order than it does to fill a 50,000 item order. While TradersPoint is not perfect it does have several advantages for both the manufacturer and the smaller merchant.
Such As?
For one, TradersPoint is an open venue where small volume buyers can select from potentially thousands of individual items from manufacturers worldwide. These consolidated orders can often far exceed any quantity that a single business could hope to place. So in effect our small buyers are assured of receiving the very best possible prices from the manufacturer and the manufacturer is assured of receiving what they like best, which is quantity orders with fast direct payments.
So answer me this. If a large chain decided to jump in and place a large order wouldn’t the small buyer be right back where he was?
Sure would. But it won’t happen. Just like a buyer can readily see on the board what the minimum order requirement is there is also a maximum order limit. This limitation is not published or revealed but any ITP order exceeding this limit would be immediately flagged
I looked at the Trade Board and it seems a little complicated with some terms I’m not familiar with.
On first sight it does seem that way but the board itself is quite simple. To help out we put a legend summary on the page to keep the explanations right up front.
Just to be sure can we go over some of the terms shown on the Trade board?
No problem.
How about the “BID”
Business ID: All members are issued a unique ID number.
What does “Type” mean?
Refers to the four type of listings on our board.
1. RL---- Regular Listing --------------- Usually refers to consumer goods
2. IL----- Industrial Listing---------- Raw materials, Machinery, Chemicals, etc
3. QSA---Quik-Sell Alert------------- Surplus, overstocked items manufacturer has for immediate sell.
4. BSR---Buyers Special Request---Items buyers need to purchase immediately from manufacturers.
1. RL---- Regular Listing --------------- Usually refers to consumer goods
2. IL----- Industrial Listing---------- Raw materials, Machinery, Chemicals, etc
3. QSA---Quik-Sell Alert------------- Surplus, overstocked items manufacturer has for immediate sell.
4. BSR---Buyers Special Request---Items buyers need to purchase immediately from manufacturers.
Why a Quik-Sell Alert?
A Quik-Sell Alert (QSA) is a special alert issued by a manufacturer to let buyers know immediately of items in their inventory that they need to move quickly. These alerts show up on the board and are also sent out by text message and email to our buyer members. This assists manufacturers in moving goods that can tie up warehouse and factory space. With these alerts they stand an excellent chance of moving the entire lot at one time.
How about the “Buyers Request” button?
While buyers can’t submit listings they can and are encouraged to submit “Buyers Requests” for items and supplies they need. These item request appear on TradersPoint and also on a separate board. Manufacturers are encouraged to pay heed to these request listings. What one buyer has a need for there’s most likely thousands of other buyers needing the same item.
The “End Date”
This is the date the actual listing will end. A listing runs for 60 days or until its consolidated or until its deleted from the board by SMORCO, which very seldom happens. Also the manufacturer can issue a Reserve Request which also effectively ends a listing.
That’s complicated
A little, but we can explain. But first ask me what an “ITP” is
OK, I’ll bite. What’s an ITP?
An ITP stands for “Intent to Purchase” and is the way that merchants on our board signal their intent to place an order and make a purchase. ITP’s are the foundation of why TradersPoint works. It’s a little confusing at first so bear with me for a bit.
Ok, Explain.
Every listing on the Trade Board has a section called the “MCO” which is short for “Manufacturers Conditional Order”. This is the total order that we have determined in advance would be placed with the manufacturer if certain conditions are met. Also in the listing is a section called the “BMO” which stands for the “Buyers Minimum Order”. Now this reflects the least amount that a buyer must purchase.
TradersPoint is unique in it’s method of operation. When a listing appears on our board we immediately begin to collect Intent to Purchase (ITP) orders from our buyers world wide in an attempt to reach the MCO for that listing.
TradersPoint is unique in it’s method of operation. When a listing appears on our board we immediately begin to collect Intent to Purchase (ITP) orders from our buyers world wide in an attempt to reach the MCO for that listing.
And
Only upon the consolidated orders from all our buyers reaching the total MCO does that listing become “consolidated” meaning we have satisfied the MCO. Because it would be confusing and complicated to collect actual payments before we even knew if a listing would eventually become “consolidated” we use ITP orders. Buyers wishing to place an order do so in the regular way but instead of actually making payment they simply submit an ITP. Only upon a listing becoming consolidated do we submit an invoice to each buyer asking for the actual amount of their order
Who determines the MCO and how do you decide?
SMORCO makes the final determination of the MCO quantity and also the BMO (Buyers Minimum Order). This is done by looking at the manufacturers production capacity as well as several other factors including type of merchandise, price, etc.
So what weight does an Intent to Purchase have?
Absolutely none. ITP’s are completely non-binding and have no legal validity whatsoever. It is merely a way of expressing the buyers desire to purchase goods at an agreed upon price if all the other conditions are met (like reaching the manufacturers MCO). While there is no legal recourse or way to compel a buyer to make payment upon an ITP we do expect buyers to honor their ITP’s by paying invoices once submitted.
OK that explains that so what about that “End Date” I asked about
Right, as I said a listing on TradersPoint runs for 60 days, but listings are only valid for fifty (50) days. The reason being that we collect buyers ITP’s for the fifty days hoping to reach the MCO and certify the listing as Consolidated. The remaining ten (10) days are used to send out the invoices, close the listing and transmit the orders and payment to the manufacturer so he can arrange shipment.
So a listing ends once they’re consolidated?
Yep! A listing ends and disappears from the board once it’s consolidated. That’s when we smile and call it a good outcome. That’s what we would like to see with all listing on the board.
They don’t all end like that?
Unfortunately not. There are several ways listings can end
1.We meet the listing requirements and the listing is consolidated.
2.The sixty day listing passes and doesn't meet the MCO.
3.The manufacturer issues a stop order which voids all the outstanding ITP's
4.The manufacturer issues a stop order with reserve which retains all the ITP's.
5.SMORCO issues a stop order (very seldom done)
A manufacturer may use the 4th option to keep his listing from expiring in order to reserve his outstanding ITP's
1.We meet the listing requirements and the listing is consolidated.
2.The sixty day listing passes and doesn't meet the MCO.
3.The manufacturer issues a stop order which voids all the outstanding ITP's
4.The manufacturer issues a stop order with reserve which retains all the ITP's.
5.SMORCO issues a stop order (very seldom done)
A manufacturer may use the 4th option to keep his listing from expiring in order to reserve his outstanding ITP's
Interesting! A manufacturer can stop his listing but keep his ITPs?
Sure can, and it’s a smart move. For instance, say a listings MCO is for 25000 units of a product but after a period of say fifty-eight days he’s only got ITPs for 20000 units. Should he allow the listing to continue and expire and lose a 20000 unit order or issue a reserve order and confirm the ITPs outstanding.
It seems unfair to the merchants and manufacturer that a listing that had accumulated a great deal of orders or ITP's could just expire because it didn’t reach the full MCO
It would. That’s why we initiated and observe the 75% rule. Once a listing has reached at least 75% of the ITPs needed to reach the MCO and is in danger of expiring SMORCO may at our option purchase the remaining 25% for our house account and consolidate the listing.
But what happens to the ITP's if a listing doesn’t reach at least 75% and is not stopped by the manufacturer?
At 12:01 AM Eastern Time on the sixty first day the listing disappears from the trade board and any outstanding ITPs become automatically null and void
So really it seems like the Trade Board is like gambling. The manufacturer is not assured of anything
There is never any assurances in the marketplace. Whether buying ad space or distributing a sales brochure. A manufacturer can never be certain who or how many will see the copy or how many orders the copy and the expensive advertising will garner. TradersPoint is much more precise. On a day to day basis the results of the listing can be seen by just looking at the board. It’s incumbent and rewarding to a manufacturer to make certain any listing he submits meets a best product best price scenario. A great product and price can produce an extraordinary large order. But in the end its the buyers who decide if they’ve done that. In that respect the Trade Board is more fair and impartial than any other form of limited time selling and because of the international market it’s a great gauge for the salability of a product.
Who can submit a listing to the Trade board?
Only SMORCO and registered manufacturers although we will register a manufacturers sole representative if that information is submitted on the registration form
What products can be listed on TradersPoint?
Generally all products suitable for the retail trade as well as commercial supplies and equipment. Industrial and raw materials is also acceptable. Buyers are encouraged to review and follow all import regulations and rules as they pertain to their specific country.
Is there a limit to the number of products a manufacturer can list at one time?
A manufacturer can only have one current listing at a time. While a manufacturer may produce many different items we strive to offer our buyers those items that have been specially selected by the manufacturer as offering particularly good quality and price. We’re not eBay or an online auction so we’re not looking for listings in quantity but in quality and price of course.
OK then, it would seem like TradersPoint could benefit both small volume buyers and large manufacturers looking to move a lot of inventory. But you say its not a perfect system. Why?
A claim that TradersPoint is the perfect system for every small business or manufacturer would be unfair and it would also be untrue. In international trade no system can be perfect or everything to everyone. Hopefully our system will help many small buyers find needed sources of supply at prices that can help them be more competitive in their marketplace. But buyers inexperienced in foreign trade must be aware that special hurdles often present themselves when dealing in foreign markets. Regulations of US and foreign customs departments, insurance, shipping schedules, and documentation can sometimes mean additional problems. As stated before both buyers and manufacturers must not expect that every posted listing will be fulfilled or reach the MCO. This is natural and is to be expected. The system must be seen as a liquid and active system and not a static and inactive one. Listings are posted, live, expire and die and are often relisted by the manufacturer often at a lower MCO. This is not a failure of the Trade Board but a normal occurrence of the marketing system. Manufacturers must also be particularly aware that because of the much higher than usual orders that can be placed for goods posted on the Trade Board it is always prudent to pay special attention to production capacity, raw material supply and acquisition when posting MCO quantities.
How about small businesses that have never imported from foreign countries before
We understand that many businesses may experience some hesitation if they have never imported, As a service, SMORCO has anticipated many of the problems buyers may encounter and has instituted appropriate solutions. Contacting SMORCO’s help line can often clear up any problems or questions.We have instituted a problem referral system of foreign trade experts around the world that can extent assistance should you run into problems.
What services would you compare TradersPoint to?
TradersPoint isn’t like Ebay or any of the other buy and sell or trade lead listing services in operation. TradersPoint was developed for two precise reasons.
1. To give small quantity buyers an opportunity to buy-in to large quantity orders placed with manufacturers around the world and make it feasible to receive their merchandise without facing insurmountable hurdles
2. To enable manufacturers to access a system and offer their products to a often overlooked market and where that market holds out the opportunity to produce much larger orders than were usually placed by any one entity.
1. To give small quantity buyers an opportunity to buy-in to large quantity orders placed with manufacturers around the world and make it feasible to receive their merchandise without facing insurmountable hurdles
2. To enable manufacturers to access a system and offer their products to a often overlooked market and where that market holds out the opportunity to produce much larger orders than were usually placed by any one entity.
THE BIG QUESTION FIRST: IS TRADERSPOINT REALLY A FREE SERVICE?
All the resources of the SMORCO website including TradersPoint is entirely free for the use of our members. A small 1% transaction fee is included in the manufacturers pricing once an order is consolidated and invoices are submitted to buyer.
