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Date:         Sat, 22 Feb 1997 13:21:39
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         EXPRES@gnn.com (Ron Salmon)
Subject:      **BIG NEWS!!** Cheap Parts \ my own VW business!

I'VE FINALLY DONE IT! As some of you know, for the last few months, I've been thinking toward turning my overgrown VW hobby/side-business into a "real" full-time operation. I've dreamed of it for a long time. What always held me back was the Great Fear of Failure - walking away from a safe income and risking everything. Well, I've finally made the no-return decision to go for it, rather than spend my life wishing I had.

So, effective immediately, THE BUS DEPOT is open for business. Before I proceed in the conventional way (run the Grand Opening ads, etc.), I'd like to try a different approach - operating the business as a deep-discount distributor, mainly geared toward the needs of the Vanagon and Type 2 lists. I think that between the 2 lists, there is enough combined buying power to support this approach.

What I am proposing is this: I believe that by minimizing advertising costs (relying mostly on word-of-mouth among list members), and by accepting members' personal checks (or COD) in lieu of credit cards (which cost 2-5% to process), I can maintain roughly a 15% across-the-board profit margin. By comparison, most mail order places work at a 25-50% markup, and local FLAPS even higher. Also, I have a background in large-scale buying (for a non-automotive retail chain), so I think I can keep finding us good deals. So, the savings to list members could vary from small to huge, depending on the item, but there will almost always be a savings. This will be on virtually all parts for all VW's (and even for most other cars, since many importers handle multiple lines).

You have already seen some examples of the savings that are possible this way - such as the deals I've offered the list on Bentley manuals, poptop seals, Vanagon water pumps, etc.

I'm not offering this strictly out of the goodness of my own heart. You folks represent a tremendous amount of buying power. Collectively, you could make (or break) me as a new business... if I can get your support. I think (hope) that you would prefer to deal with someone who is responsive to the needs of the V@L and Type2 communities, and has a track record of offering good deals and good service to the list. And frankly, the profit I'm giving up by offering listmembers these discounts, I'm making up on the other end by not having to advertise. So it's a win/win situation.

Still, this will only work if the lists can generate enough combined business to minimize the need to advertise to the general public; with advertising costs added in, a 15% margin would be out of the question. So I'll have to measure how much business is coming as a result of the List. For that reason, I've set up a dedicated e-mail address for listmembers:

list@busdepot.com

Sending inquiries to this address will ensure that you get the low-margin listmember prices I'm promising, and will allow me to guage whether this no advertising/low margin approach is working. Also, thanks to Ken's (and Gerry's) assistance, I will be able to verify that those who claim the discount (and check writing priveleges) are in fact listmembers and are entitled to them.

I have also set up a website specifically geared towards Busses, Vanagons, and Westies (and Eurovans, although I need to learn more about these beasts). The website is at:

www.busdepot.com

***Please note that the prices on this site are NOT listmember prices!*** Although the site is primarily geared toward the Type2/Vanagon lists, it will also get non-list traffic, so most of the prices are a little higher. To get a listmember price, you must either e-mail me at list@busdepot.com, or specify on the order/quote response page that you're a listmember. Also, I'll be setting up a separate "hidden" page at www.busdepot.com/list.htm just for additional listmember info or specials. It is not operational at this time. I'll let you know when it is.

This is my first attempt at designing a website. (Special thanks to Ken Hooper for some welcome assistance!) It looks good on Netscape 3.0, but lousy on my internet provider's proprietary browser. Hopefully it looks okay on what you're using. I'd really appreciate your feedback and suggestions on both its content and its look. I need to learn. Also, I'd like to add more informational pages on Busses, Vanagons, and Eurovans, as well as some classifieds. I bought a little extra webspace for this purpose. If you'd like to use some space for info that you think would benefit the VW community, feel free to e-mail me directly.

There will also be another side to the business. Simple math indicates that unless your VW's start breaking at an alarming rate, your orders alone will not support a business. So I'll be augmenting it with the sale of used parts (which are more profitable), plus my friend Jon will be sharing the space with me doing air-cooled VW repair (which will reduce my overhead, and provide a built-in parts demand). Also, I'd still like to fix up and sell a couple of rust-free California Westies here and there (but privately, as I don't wish to be a used car dealer).

One comment regarding commercial advertising and the Lists. Gerry and Ken have always allowed or even encouraged it on a limited scale, but obviously that's not the main purpose of these lists. They are primarily a forum for discussion of Bus & Vanagon maintenence and enjoyment, not an advertising medium, and I think most of us (myself included) would like to see it stay that way. Obviously, I'm hoping for good word-of-mouth on the list, just as listmembers often post positive comments about other vendors that they've had good experiences with. But I do not intend to use the list as a Sp*m medium. In the past, I've posted offers to the list when a specific opportunity availed itself,or in response to a list query (as have others), and with Ken and Gerry's permission, I'll continue to do so. But not more. That's why I set up list@busdepot.com - so we can keep most of our business dealings off the list.

I'd really appreciate any and all feedback. I want to be responsive to your ideas, suggestions, and needs. I hope I can count on your support. I will do my best to earn it.

Thanks, Ron Salmon The Bus Depot 4801 Gravel Pike Perkiomenville, PA 18074 (610) 754-VWVW http://www.busdepot.com e-mail: list@busdepot.com


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