On4 Communications Inc (ONCI)

[Phattwoohie]

Here's some info on QVC and how they do business. First, they have an average sales rate of 15,000 orders per hour. They negotiate very hard!! If you tell them your product sells for $20 each they might offer you $7 each and demand that you can deliver 1500 of them in 30 days. But if the product costs you $11 to make then your only going to profit $2 off each one while QVC is making more than you on your own product.

The upside to this is that your product is now in front of millions of potential buyers and seasoned hosts on QVC that will work the audience and make it sound like your product is the best thing since sliced bread. Many vendors came on QVC with an unknown product that exploded in popularity and went on to make tons of money.

QVC also has a minimum hourly profit rate which is divided up by the time slots allotted to each product. They have a meter that measures the calls and sales of your item from the very second it goes on air. If say you are given a 30 minute time slot and in the first 4 minutes your product is not garnering the calls that meet their minimum requirements they will end your slot early and move on to a different vendor.

Even if you only make $1 profit per sale, the exposure to 110 million households is HUGE. Also, sales can be intense if it is something that strikes home with the audience. Take Dooney and Bourke for example, their first show on QVC years ago, they sold 10,000 handbags in less than 5 minutes! Then there was the backup battery for your phone that sold 380,000 units the first time it aired.

So my point is that even if your margin is slim, your a stupid idiot not to put your product on QVC in front on 10's of millions of viewers/potential buyers/potential investors, etc.