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Doing Hi-Tech Business The Old Fashioned Way 18 August 2003 Edition
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Back in the olden days (before the dot-com collapse) it was thought that just about any Net-related venture would make money, you just had to keep pouring cash into it until profits came out the other end.

Of course (now) we all know that isn't true and that profitable Net-based ventures are the exception rather than the rule.

However, there are some people out there making a quite satisfactory living through their clever use of the Net and all the power it offers.

No, I'm not talking about idiot spammers who try and pitch fake pills and potions at us. I'm talking about genuine business people who provide goods or services that are really worth paying for.


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One example of this is the website PriceJapan.com.

As far as websites go it's nothing exceptional, but the concept and execution of the service being offered are rather good.

The idea is that PriceJapan.com acts as your shopping proxy -- a cyber "rent-a-shopper" so to speak.

You tell them what you want and they'll run around, find the best price and, if you decide to purchase, they'll go out and buy on your behalf.

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Then they bundle up your new item and courier it off to you for the cost-price plus freight and a small 5% margin.

But why would you want to do this rather than buy directly from the supplier?

Well there are a number of reasons.

Have you ever tried to deal with an Japanese retailer with an online store that looks like this? What's more, few Japanese companies are prepared to ship outside of Japan anyway.

Mr Kaneda, the founder of PriceJapan.com told me that the operation was started back in 2001 after he realised the degree of difficulty many foreigners were having in dealing directly with Japanese suppliers.

The site now employs four people on a full-time basis yet does no promotion outside of the website, most of the business now coming from regular customers and their referrals. And a quick check of Google's usenet archive shows that they do indeed have an excellent reputation.

When I asked Mr Kaneda why PriceJapan.com was so successful he told me "Simple name, reliable shipment, clears statement of purchase condition, link to lowest price in Japan, and quick reply to customer's inquire".

I think, despite his slightly broken english, Mr Kaneda has spelt out some of the key attributes of any successful business: Price, performance and service.

My own experience with PriceJapan.com has been very positive. I was looking for a "genuine" manufacturer's-brand lens that was not available in NZ because the distributor was out of stock. Within a few hours of emailing them, PriceJapan had responded with a price (including service charge and courier fee) that was less than the local retail for the item, the savings being even greater because it cost less than the threshold at which GST is levied on private imports.

I received another email (complete with the courier's tracking number) when the item shipped and a couple of days later the lens was in my hand. Meanwhile, the NZ importer was still "out of stock" and trying to charging a small fortune for the same item.

Of course when you live in NZ there are some caveats with buying consumer electronics direct from Japan. If your item has a manual, you'll get the Japanese language version. If it's video gear you're wanting, be aware that Japan uses NTSC so you won't find any PAL (NZ standard) equipment there. I believe they also run 100V mains at 60Hz, although much (but not all) of it will run happily on our 230V/50Hz power. However, sourcing other accessories such as lenses, filters, batteries, digital still cameras, etc., direct from Japan may sometimes save you a few dollars or some time if the local supplier is out of stock.

For example: an Olympus C-750 Ultra Zoom digital camera will currently set you back a cool NZ$1,427 (RRP) or $1,269 (plus freight) from a local online retailer.

A quick Froogle turns up a lowest price of USD$575 (NZ$974.90 plus freight/courier to NZ, plus 12.5% GST)

PriceJapan will send you one for around AU$752 (NZ$839 +GST = $944) including courier delivery to your door. That means you'll save nearly three hundred bucks over buying locally but remember that the manual and onscreen prompts will probably be in Japanese and the warranty might not be honoured locally.

Let me make it quite clear that this isn't an advertisement for PriceJapan or any other company -- simply an example of how and why some people are doing very well with their Net-based businesses, while others have to resort to spamming.

If any Aardvark readers want to share an opinion on today's column or add something, you're invited to chip in and have your say in The Aardvark Forums or, if you prefer, you can contact me directly.

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