PriveCo offers competitive pricing. While
developing our business plan we determined that it was possible for
us to offer pricing that was competitive with leading pharmacies
while offering privacy and convenience. Here is a summary of how that
Factors that contribute to
PriveCo's low prices:
- Low Rent - Our Warehouse is located in the back of an
industrial park. By locating where rent is significantly cheaper
than a retail store or pharmacy, we can reduce our costs.
- Volume - Our present size is equivalent in sales to a
small pharmacy, however, we only carry 1500 different items. We can
take advantage of volume pricing that other businesses our size
- Inventory Efficiencies- We stock everything we sell. In
fact we keep about 1 months inventory on hand at all times. At
times this can seem like a lot of merchandise and indeed we had to
move into a larger location on January 1st 2003. However, when you
compare the amount of merchandise that a traditional store or
pharmacy has to carry we carry much less. Carrying less inventory
is financially efficient and saves money.
- Sales Tax - Unless you live in Michigan, your purchase
will be exempt from sales tax. This may be a significant
- Lightweight items - The items we sell lend themselves
well to online purchase. They are generally lightweight, compact,
and easy to ship.
- Efficiency - We try our best not to waste money and so
far have been doing quite well. Tom (the President) sets a good
example, he drives a very reliable (but very dorky) 1999 cargo van and uses a desk he received for free.
- Publicity - As a young company with a new idea we have
received quite a bit of free publicity. This has saved us a bundle
on marketing costs. We have tried to roll this into business
growth and our method for doing this was to lower prices.
- Competitive Mentality - We carefully monitor competitor
prices and make sure that we live up to our promise.
Factors that may keep us from
having the best prices:
- We don't send unsolicited e-mail. Unfortunately Spam
has become a financially effective method of marketing.
Competitors that use Spam can save money and sometimes offer lower
prices. We believe our strategy of discretion and privacy will be
better in the long term.
- We cannot afford to lose money. Isdera Corp. is a
privately owned company with limited resources to fund its growth
(we mortgaged our houses). This keeps us from offering products at
- We don't screw you on the shipping costs. I think we
all know this trick.