31 January 2013
BFG Buys Commecre Website Thus Customer Base as Well
BFG Buys Commerce's Former Website from IGC Retailer
Burton, OH - BFG Supply Co. has secured ownership of Commerce Corporation's former website, www.commercecorp.com, where users can enter their existing Commerce login information to place orders through BFG. "The website is part of the asset deal that we've secured with Commerce and its bank. We now occupy Commerce's former Grand Rapids, MI, facility and commercecorp.com," says BFG Marketing Director Tim Ward. BFG is actively shipping product from the Grand Rapids facility. "The 50-plus employees we've rehired from Commerce are back at their old work stations there," Ward says.
Watch for more details, including reactions from affected IGC retailers and industry distributors, in the March/April issue of IGC Retailer magazine.
Garden advice you can dig!
Subscribe to:
Post Comments (Atom)
"BFG Buys Commerce Website Thus Customer Base as Well" Really, that is what you think BFG's purchase of Commerce's domain name & website means? BFG now owns Commerce's former "Customer Base"? Not!!!
ReplyDeleteAn outright physical purchase of Commerce customer base of course not. That was not the intent nor the meaning and I think you already know that. It is no different than when a cable company buys another and the end result is the customer base/subscribers come with it. As well well when a magazine or newspaper buys another they get the "customer base"/subscriber list.
DeleteSince this is a website with a large customer base it is akin to buying a catalog company and with it comes the customer base/mailing list/etc. This is a common practice in media to buy an existing asset with a large customer/subscriber base.
For instance someone buying Facebook would pay mostly for the users not the site itself. You Tube would be another example. Huge user base that would cost the buyer dearly. My Space on the other hand would not command anywhere near the dollars because the user base has evaporated. A small online garden store with small customer base is not a good buy. This is a brilliant move by BFG. BFG now not only can service existing customers without having them to switch to a new website and learn how to navigate a new system Commerce customers anywhere can log in and buy. This allows BFG an amazing opportunity as they have in a sense laid track into markets not currently served by having the infrastructure in place first. It does not cost BFG anything if I in New York do not purchase online. If they start sending a sales force here guess what the web site makes it much easier.
By purchasing the website and keeping it functional by allowing existing customers to still log in and buy is the same as "buying" the customer base/subscribers.
So to sum up yes BFG did buy an asset called a customer base. All businesses are priced to sell based on more than the real estate. Retail businesses are priced on sales and good will. These two items far outweigh in many instances the real estate, inventory and web site.
Thank you for sharing this information with us! There are lots of financial planners in our society but we need to choose the trustworthy for the safety of our investments.
ReplyDeletefinancial planning columbia sc