Invest $700 Dollars Using Economies Of Scale - Building a Soap Business

By Martin Thomas

Economies of scale is a very interesting business term that refers to the deep discount one can receive for purchasing something of anything in bulk. By splitting it off into more appealing retail chunks, when all is sold, the return is double or triple what you paid for the larger quantity.

This is a typical business concept and nothing knew. When you buy a large lot of anything, you are entitled to and usually receive a deep discount. Whether its land or cars or consumer items or soap. One thing about soap is that it is a re-sellable item.

Unlike other types of products which you can typically sell only once to a consumer and you never sell them anything ever again. Soap is a renewable business product. If your soap is good, or the deal is good or what ever the reason is, that people will continue to buy from you, it can potentially turn a majority of customers into life time customers.

One idea is convenience. With only $700 to invest, you need to look at these types of products because they are within your investment budget. If you purchased for example a drum of dish washing liquid for $200 and purchased 1000 blank plastic bottles that can be filled. You could potentially price them way under what a retailer may charge. On top, to get your life time customers you provide convenience by going door to door.

Once you have 1000 of these types of customers buying from you dish washing liquid every month, you could expand your range and also replace the manual delivery with a phone call and a mail order set up. This type of investment takes some time and energy to set up but over time it becomes more and more passive.

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