The SYANDEX business model
8 unique points of innovation in one concept!
1. Brand of brands
Through your cluster you promote brands and products of your customers and bring them into business in markets abroad. So you provide to them the same benefits as you would acting as consultant.
Though, for the buyers it is your brand they are doing business with. The relationships are owned and managed by your brand.
2. Multiplying customers through clustering
As consultants you have face the problem that there are hundreds of prospects interested in your services, but without budget to pay for your services.
SYANDEX is now providing the key for exploiting this potential: instead of a one-to-one business development, you create a cluster of many producers. They can participate in your cluster with a small listing fee, absolutely affordable to them.
This means that SYANDEX generates business value in a segment which for you had zero value before.
3. Unique services to cluster members
SYANDEX creates a very special character for cluster members: you are to them a great business development solution and buyer at the same time. This makes the SYANDEX proposition so unique and attractive!
4. Digital business
Business goes digital at all levels. Digital tools are required for managing the cluster, but at the same time buyers are expecting more and more digital interaction and digital product data.
In SYANDEX all products, product specifications and product management are digitalized. This is the base for the digital catalogue, digital quotations and digital orders.
Very important: cluster members are asked to enter their product data themselves, which save you a lot of work and costs.
5. On-demand business
With SYANDEX you are neither in spot trading nor in e-shop business. Your objective is to build up long-term relationships with buyers (and producers). You will sell on-demand, this means upon orders of buyers.
By this business logic you don’t need a warehouse or to purchase and to stock products, but you collect them in the transportation company, whenever you are ready to ship.
6. Multiple revenue streams
SYANDEX allows you for generating a source for multiple income:
Listing fees for entering your cluster
You should ask for entering your cluster a small, affordable listing fee. Don´t consider it as profits, but as contribution to your costs for developing the business.
Why should cluster members pay a fee for entering?
- You provide to your members an innovative business development opportunity
- Incredibly low cost should not mean zero cost! A zero-cost proposition is a no-commitment proposition! You don´t want to invest and to rely on partners who are not really committed to your project. So, the listing fee is a minimum prove of their interest and commitment.
Of course, you are free to start your cluster without any setup fee.
Sales are in business always the main objective.
You buy and you (re-)sell the products with a predefined mark-up or margin. This is the favorable option. Why?
- You have the full control of the relationships to buyers
- You are able to control the complete process from order to delivery
- You are able to collect products from different brands and to execute mixed orders
- Even for mixed orders buyers will receive only one invoice
With SYANDEX you can go for a significant share on sales, as you are not just an agent, but in control of business development. You are the business!
Beyond the commercial part (listing fees, margins) the cluster business offers opportunities for additional revenues through add-on services as:
- Optional participation in special promotion activities and events
- Consultancy on improving competitiveness of cluster members
- Support in the development of marketing tools
7. Cash flow
Usually a new business requires a lot of cash to put in, before revenues start to come in. With the SYANDEX model you generate positive cash flow even before you start sales! How does it work?
For listing a new brand the listing fee is much higher than the subscription costs. In most industries, even for small companies, a listing fee of 2.000€ – 3.000€ to enter your cluster is a reasonable payment. So you create a high cash flow already during the development phase.
8. Minimal investment costs
The most common barrier for starting an own business is the necessity of high equity. The SYANDEX model provides the opportunity to setup your business with minimal investment costs. With our subscription model you will generate positive cash flow even before starting sales with your cluster.
Beside the innovation of SYANDEX keep in mind:
Key of success: your professional background
With SYANDEX you get a strong concept, sophisticated digital tools and a roadmap to design, implement and operate your business.
Nevertheless, there are some more assumptions for being successful in your business:
- You should have expertise in the product field you are starting your business. It is important that you are experienced in discussing, evaluating and accepting brands in your cluster.
- Your experience in the specific product category will enhance your profile to prospects (cluster members) and buyers
- It is very helpful to know personally from the very beginning producers, which will be interested in your business proposal. The acquisition of first 5-10 cluster brands in short time will boost your cluster development.
- As stronger your cluster is in terms of brands and assortment, as more interesting you become to buyers and as better your prospects for high sales results
- You should be a strong marketer. Beyond the SYANDEX application, your main asset is your marketing expertise and marketing power.
Cluster operation processes
For the development and operation of your cluster the main processes are:
- Acquisition of cluster members / producers
- Monitoring your product assortment
- Promotion activities
- Acquisition of buyers
- Order management & quotations
- Sales management & shipments
With our subscription model you save huge investment costs. Even though the business is always yours. This means that the database and all data of your brands and products are owned by you and can be transferred to any other system in the future.