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for ScottR, Scott R

Posted by Ed Davis, DPM on 11/03/04 at 15:08 (162877)

Scott:
Did you have a chance to follow through on that lead for the Ergo-Mates product? I have a call into them myself and gave them your name. They are quite unique as a concept and the few patients who have gotten them have given them rave reviews. An oil and gas parts store in Seattle is the only place in my area that has them and in limited quantities. I am trying to get a hold of some -- the company that makes them in Canada seems unsure how to market them and I don't think they truly realize how significant a product they have on their hands. Almost all devices to date go in the shoe. The Ergo-Mates are mounted to the outside of the shoe acting as a portable tread mat or safety mat. With all the patients I see in manufacturing jobs, standing on concrete for 8 to 10 hours a day, they can significantly decrease stress and strain on the foot, not to mention, making the shoes/boots last much longer.
Ed

Re: for ScottR, Scott R

Scott R - moderator on 11/03/04 at 15:30 (162880)

They called today....over $30 distributor price...kind of pricey, but i think i'll try carrying them to see if anyone wants them. I doubt it will sell well at heelspurs.com. They should really GIVE me all i can sell because one factory worker who stumbles upon them at heelspurs.com or the newsletter has the potential to attract the interest of his entire company. I suspect 25% of powerstep sales nationwide are the indirect result of heelspurs.com exposure

Re: for ScottR, Scott R

Janice C on 11/03/04 at 22:16 (162911)

Scott, I am interested in getting a pair of the treads. I am still doing very well on the HTP heel seats, still not 100% but I would say 75% better than before (I had endoscopic plantar fasciiotomy (spelling?) last July, but have other stuff going on in my feet, morton's in both, Dr mentioned TTS because of the burning & numb toes. All that has improved with the seats). But I think the treads would help me when I have to be on my feet on concrete. The concrete nearly brings me to my knees. I am still continuing to lose weight as suggested in your book. This website has been such a blessing to me. Thanks so much for yours & everyone's help. I hope to keep reporting improvement. Thanks- Janice C

Re: for ScottR, Scott R

Scott R - moderator on 11/03/04 at 22:28 (162912)

OK, keep an eye on the products page and maybe in 2 weeks they will be listed.

Re: for ScottR, Scott R

Ed Davis, DPM on 11/03/04 at 23:09 (162913)

ScottR, Scott R :
Sounds like you got a better price offer than I. I am not really interested in getting into the retail business but will carry them if availability is limited. They seem a bit unsure of how to market them. Did you get that impression from them too?
Ed

Re: internet retailing - a look behind the scenes

Scott R - moderator on 11/04/04 at 07:42 (162920)

It's $32 plus probably another $1 each to pay for shipping to your door, and the suggested retail is $44.55 which is a very small percent profit margin (unless it's something at walmart). From this pricing scheme it seems they are new or they are hoping for big-company direct sales only. I would have to sell 5 pairs for each pair in inventory, and i need at 2 months worth of inventory, but since there are different sizes i need about 3 months of inventory - running out of a size when people are trying to place orders is not an option because it causes a lot of trouble. If i sold 10 per month, i would need 30 in stock, so i would need to sell 5*30=150 pairs (or 15 months) just to pay for inventory. After that, profit would be 10*6.70=$67 a month. But most internet businesses should not depend on seling any product (or even depend on staying in business) for 15 months.

Here are the calculations behind '5 pairs to pay for each pair in inventory':
Labor ends up costing $2 per order at the very most if it's low-volume and inefficient. 25 cents labor per order is the absolute lowest for high-volume and no automatic machine packaging. For this, I'll assume $2 per order. Returns for this would be about 5% of units sold. If returns are 100% resellable, i lose only shipping and credit card processing ($6), so 6*0.05=30 cents per pair sold to make up for 5% returns. 0.04% is the credit card processing fees after all is said and done. Using the numbers above, profit per pair is: 44.55-32-1-0.04*44.55-2-0.30 = $7.70 assuming i break even on shipping, which is not true: i'll lose $1 per pair on that. So $6.70 profit per pair. It costs $33 to get a pair in stock, so 33 / 6.70 = 5 pairs have to be sold to pay for each pair in stock.

Re: internet retailing - a look behind the scenes

Ed Davis, DPM on 11/04/04 at 10:49 (162936)

Scott:
I noted too that the difference between their suggested retail price and 'cost' price did not allow for a sufficient markup. Thanks for the calculations, very helpful. My feeling is that their cost price was 'negotiable' though...
Ed

Re: internet retailing - a look behind the scenes

Kathy G on 11/04/04 at 16:39 (162973)

I thought they were an interesting idea and I'm amazed that they don't have a larger profit margin. I wonder if they don't know what they're on to. Hope they've patented it.

Re: internet retailing - a look behind the scenes

Ed Davis, DPM on 11/05/04 at 14:34 (163040)

Kathy:
I did not note a patent number on the box. I agree that they have underestimated the utillity of their product.
Ed