Business Model Question: Is it ok to use Crowdsale to obtain Wholesale Discounts

[McDoublez]

Simple Wholesale Business Model Example:
Retailer A purchases $1 Mio worth goods from Wholesaler B. Retailer A sells goods to customers and makes a profit. If retailer A was to purchase $10 Mio (10x) worth of goods, Wholesaler B would give 10% discount to Retailer A.  So Retailer A conducts crowdfunding and raises $10 Mio from Investors and purchases inventory from Wholesaler B at 10% discount.  Retailer A sells goods, receives higher profit margin and therefore is able to provide dividends to investors .

Question:
Is it ok to build a business model around wholesale discount price obtained through crowdfunding?  ...or what do you think

[1713533554]

1713533554

[nc50lc]

As far as I know, ICOs offer investors discounts or rather bonuses for the "early birds" and it works wonders.
Experimenting on gimmicks like extra discounts are a good thing, the wholesale discount can be a good addition if you use it well.

The truth is, ICOs aren't totally trusted by the crowd, what they trust is each-other's decisions.
People want to join an ICO which is "selling like pancakes", one reason is, they could be thinking that "it's a good one because the fund is growing faster than anticipated"
With the early bird bonus, the crowdfunding can achieve a boost at the start of the fundraising that is most of the time displayed in the Webpage, which is an eyecandy for potential investors.

With this, offering a wholesale bonus together (do not disregard the "usual") with the earlybird bonus can help the success of the ICO.
Although, the usual early bird bonus is good enough, another gimmick wort hunt.

Keep in mind that the most success-driver for crowdfunding is its offered services or end-products, not the bonuses.

Regards.

[minthit]

Purchasing big amount to get discount from wholesaler to get better profit margin is how retailer usually operate, isn't it? I can't see anything not ok with that even if the purchase was made through crowdfunding.

[audaciousbeing]

Simple Wholesale Business Model Example:
Retailer A purchases $1 Mio worth goods from Wholesaler B. Retailer A sells goods to customers and makes a profit. If retailer A was to purchase $10 Mio (10x) worth of goods, Wholesaler B would give 10% discount to Retailer A.  So Retailer A conducts crowdfunding and raises $10 Mio from Investors and purchases inventory from Wholesaler B at 10% discount.  Retailer A sells goods, receives higher profit margin and therefore is able to provide dividends to investors .

Question:
Is it ok to build a business model around wholesale discount price obtained through crowdfunding?  ...or what do you think

Since nothing is mentioned about coins or ICOs, I would assume that its not related to that. Crowdfunding if looked very well is something that have been with us for a while. Group of people coming together to buy goods at a discounted price that they would otherwise bought higher if they had done it individually, or investors coming together to finance a project then wait for dividend to be shared.

However, if you are going for the dividend part, its more difficult than it sounds depending on the amount involved, people involved, the business to venture into, other administrative cost, and the regulation of that jurisdiction all of the factors pit together affects businesses to the extent that in the first five years, it might not even turn out profit talkless of dividend. The summary of it is that, its a good business line but you need to consider all of the factors before asking for people to contribute for financing.