I figured I talk alot why not write a lot also.
Let me give you some background on the discussion I was having with my sister and her friend.

The guy, my sisters friend, is thinking of starting a new business. His idea? Grocery home delivery, you make the list, he buys the food and delivers it, all for a small fee. Small because it's only $25 which I personally don't see bad. This is where the problem starts, out of curiousity I began to ask about how he plans to go about doing this. I was curious if he had considered the pros and cons of this kind of business and pointed out a few cons as example. Now they consider me to be a negative person simply because all I can see are the bad things that can happen.

Now my question is, am I being "negative" for wanting to avoid problems before they happen by considering any possible problems and try to have a possible solution if they were to happen? Is that not what a business person does before he opens a new business? Is it not the purpose of opening a business to keep it open and so one must avoid problems as much as possible to help keep the business going? OK so it's more than 1 question, but I just can't seem to understand why am I being negative when wanting to avoid problems by considering they could happen and try to have a solution for it.

Here's an example, I asked what vehicle will he consider using for the deliveries? He said he has 3 vehicles at home that he can use. Now I know for a fact that he own an almost new Ford Expedition withexpensive rims and great stereo system and even a dvd player, he also own a Lexus and a Motorcycle. Does this sound like the kind of vehicles you would use in a delivery business? Why not get a used old van, after all 3 vehicles, all expensive you think he could aford a cheap van. Now I'm negative for thinking that bad things can happen to new vehicles. I personally wouldn't want scatches and dents on these kinds of vehicles while going to the supermarket, say 4 or 5 times in 1 day, everyday when I could have a cheap van that I wouldn't mind it happening to. Everyone knows these things happen in supermarkets, am I being negative? I feel I'm being cautious.

Another example, how will you get the right product in a store with many varieties of a single item, like colgate which has about 15 different pastes? This is a place where people look for specials and don't usually by the same thing twice and probably don't even look at the name with the extras. But you want to give good service and avoid mistakes in order to keep customers happy and the business going, otherwise what's the point of the business.

His attitude towards this business is just put out flyers, hope to get some people to bite, use his car and get whats on the list and if it works great and if it doesn't oh well. All I wanted was to help make this a permanent idea and not one where you wish upon a star and hope it works. I guess I see things different, I believe that a business owner wants his business to grow and last long and avoiding problems by having solutions ahead of time is the way to go. By my own account, by what I have witnessed myself and the conclusion I reach, a person who just wings it is usually a person looking to make quick money, a scam artist, a person who's only motivation is to get as much money as they can as quick as they can without consideration for the customers that end up liking and depending on them and when the idea falls, move to the next one and forget about the customer. I just don't get it.

Comments
on Apr 26, 2006

What about the different brads of stuff?  Unless people specify brands, he won't know what to get - and what about when the stores are out of the customer's specified brand?  What then?

If his insurance company finds out he's using his vehicles for business, his premiums will go up. 

What about taxes? Who's going to do his bookeeping? 

I know I wouldn't pay $25 for some dude to do my shopping for me.  There are just too many variables for him to be able to do it well.

on Apr 26, 2006
I've got a business idea I'm currently trying to flesh out with some friends, and from my perspective, I want people to pick my idea apart from every possible direction. I want others to point out every hole and gap they can find. Why? Because I want to go into the ordeal with the most bullet-proof business plan possible. Your sister's friend doesn't seem to understand what constructive criticism is, which implies to me he isn't approaching this as a real business opportunity, so much as a weekend job to make a few extra bucks here and there.

And for $25/run, he's going to operate with very little margin between time to shop, time to drive and carry. You can't just toss out a flat rate like that for a service, there are too many variables that can impact cost to execute.

He's not serious about doing this, that's what I get from your description of his plan.
on Apr 26, 2006
If someone asks you a question and you answer it honestly...you are not being negative.

If they think so then all obviously all they want to hear is "yes yes yes."

Pfft. Sounds like a dumb idea anyway. (Now that's negative!)
on Apr 26, 2006
They tried internet Grocery shopping.  It bombed.  This sounds more like a hobby than a business.
on Apr 26, 2006
The price is too high for the small jobs, too low for the big jobs. Sure, $25 a pop sounds nice, but who's going to pay that for a small order? And a big job could cost him more.

What I would suggest is pricing based on the order size (probably a $5 minimum, to cover gas, etc). He should get the most fuel efficient vehicle he can that will carry enough groceries for the trip, and, yes, he should have insurance specifically for business purposes (because he is not carrying passengers, it won't be too hard of a hit).

If he wants to do it, what with gas prices and all, it's not too bad an idea. But he needs to put together a serious business plan, which consists of more than flat rate pricing and a couple flyers.
on Apr 26, 2006
Considering that many supermarkets and groceries have their own delivery service (for free) and it is possible to order groceries on the internet today (for free) this does not sound like a good idea. The $25 fee is not something that someone will be willing to pay if they can get the same service for free.
I'd advise him not to give up his 'day job' just yet.
on Apr 26, 2006
Considering that many supermarkets and groceries have their own delivery service (for free) and it is possible to order groceries on the internet today (for free) this does not sound like a good idea. The $25 fee is not something that someone will be willing to pay if they can get the same service for free


Maybe in some metropolitan areas, but not in many areas of the country.
on Apr 26, 2006
What about the different brads of stuff? Unless people specify brands, he won't know what to get - and what about when the stores are out of the customer's specified brand? What then?


Well I did mention that and they claim to have a plan for that but they can't fool me.

If his insurance company finds out he's using his vehicles for business, his premiums will go up.


Well, he's doing the business here in Puerto Rico so cars here don't pay insurance and besides they wouldn't know it anyways, that's how things work here.

What about taxes? Who's going to do his bookeeping?


The tax part might be a problem, he does have to pay taxes here for a business, but since the idea is not a serious business it's not gonna be on the books so no taxes. And like I said about chances are they will never find out either unless someone rats him out which is actually very possible.

I've got a business idea I'm currently trying to flesh out with some friends, and from my perspective, I want people to pick my idea apart from every possible direction. I want others to point out every hole and gap they can find. Why? Because I want to go into the ordeal with the most bullet-proof business plan possible.


That is exactly my point, thanx for giving me more power.

Your sister's friend doesn't seem to understand what constructive criticism is, which implies to me he isn't approaching this as a real business opportunity, so much as a weekend job to make a few extra bucks here and there.


That's exactly what I meant, it all sounds like some kind of scam to make money off of people's stupidity instead of a real business with a real service.

And for $25/run, he's going to operate with very little margin between time to shop, time to drive and carry. You can't just toss out a flat rate like that for a service, there are too many variables that can impact cost to execute.


That is true, but they see it as some kind of test run. I see this as a waste of time with a change to make a few bucks before it goes down the drain.

He's not serious about doing this, that's what I get from your description of his plan.


I'm glad I am being loud and clear on this, that is exactly what I wanted everyone to understand. I just can't get them to understand, especially my sister who I'm afraid might be dumb enough to put some money into this idea.

If someone asks you a question and you answer it honestly...you are not being negative.If they think so then all obviously all they want to hear is "yes yes yes."


, this is so true. I guess I might as well except it right? . What bothers me is that my sister already branded me a negative person and no matter what I do, what I say about any subject, my words will be heard as negative thinking. It hurts because it's coming from my own sister, something that already happened with my brother before. They will believe everyone else before me. Hence my reason for my article about being a "Half Brother".

Pfft. Sounds like a dumb idea anyway. (Now that's negative!)


.

Actually I think the idea is not too bad, if done properly. The supermarket as not close by and the only means to get to it is either by car, bike (to far to carry to many bags and a dangerous road) or on foot (if for the bike is far just imagine on foot). There is no reliable mode of public transportation and with gas prices rising faster than Usama can run, chances are there will be some people interested in the idea. Though someone made a good point to me, the economy in Puerto rico is dying and without a good economy this kind of business will not float. People will have to stretch every dollor to make the most of it and paying $25 to get your groceries delivered will not be on the Necesity list.

Thanx for the responses. I feel much better about my position. I even fell like sending my sister to hell for even considering me a negative person.
on Apr 26, 2006
The price is too high for the small jobs, too low for the big jobs. Sure, $25 a pop sounds nice, but who's going to pay that for a small order? And a big job could cost him more.


That's true, didn't even think about that one. I wonder if they did.

What I would suggest is pricing based on the order size (probably a $5 minimum, to cover gas, etc). He should get the most fuel efficient vehicle he can that will carry enough groceries for the trip, and, yes, he should have insurance specifically for business purposes (because he is not carrying passengers, it won't be too hard of a hit).


That is a good solution but one that will be ignored since the main drive here is money not the business itself, they will not see it that way. As far as he's concerned, people won't seem to make a grocery list big enough to make him think $25 is not enough and chances are most will be small list so $25 will be more like a scam.

If he wants to do it, what with gas prices and all, it's not too bad an idea. But he needs to put together a serious business plan, which consists of more than flat rate pricing and a couple flyers.


I don't think he knows what a serious business is. You should see him here at work, he's the kind of guy who does things most people would be to afraid to do for dear of losing their jobs. he does them in plain view is if he has no fear of losing his job. As if he can't be fired.

Considering that many supermarkets and groceries have their own delivery service (for free) and it is possible to order groceries on the internet today (for free) this does not sound like a good idea. The $25 fee is not something that someone will be willing to pay if they can get the same service for free.I'd advise him not to give up his 'day job' just yet.


Well that's just it, this kind of idea does not exist in Puerto Rico. At least not in the south. People here are probably ignorant enough to pay the $25 for a few items that will propably cost them the same price.
on Apr 26, 2006
After reading everyone comments and making comment of my own, I have reached the conclusion that I am wasting my time with a business that I am not involved in, that I have not put money into and with a sister that wouldn't take my advice if God came down and told her to. Why did I make such a big deal out of my sister and her friend branding me a Negative person is beyond me. I should have just ignored it and keep moving knowing I was right in the end, regardless of what they thought.
on Apr 26, 2006
They tried internet Grocery shopping. It bombed.


I'm not sure where you got the idea that it bombed. I think that it is quite successful in cities--I know loads of people who love the service and would not consider shopping any other way.
on Apr 26, 2006
I'm not sure where you got the idea that it bombed. I think that it is quite successful in cities--I know loads of people who love the service and would not consider shopping any other way.


Shades is correct. In larger cities, like NY this is very successful!


Charles you're abosolutely correct in feeling the way you do and Zoomba's summary of the whole thing is correct. [not that everyone's response wasn't good, just that zoomba was more concise].
on Apr 26, 2006

I'm not sure where you got the idea that it bombed. I think that it is quite successful in cities--I know loads of people who love the service and would not consider shopping any other way.

Probably from the fact that all the majors went belly up with the Dot com bust.  I am not talking a Krogers doing it.  I am talking an internet company doing it.

Shades is correct. In larger cities, like NY this is very successful!

I will google it tomorrow and show you the CNN story where the last big one was going Chapter 11.

on Apr 26, 2006
Don't let them make you feel bad. You were just trying to be helpful.

That said I do think this type of service could be valuable. I would take it further and offer an errand, small home repair type of business. There are lots of senior citizens who want to stay in their homes but can't do all the errands and home maintenance because of their health. I think these people would be glad to pay for a responsible person to run errands to the store etc. You definately would have to figure out a better fee structure though. I don't think a flat fee would work unless it was an hourly fee for your time.