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GRG Motors buys overstock, oversupply, manufacturer's overruns, and
bankrupt companies' auto parts inventories and selling them to the car parts
shops and car repair shops in different countries, particularly developing countries in South America and Asia. The company has access to over 3 billion dollars worth of automotive parts.
The company had traditionally done business manually. Being a company that operated in different countries, it was not only logical but imperative that there were many benefits to be had in taking advantage of the Internet and establishing a web presence.
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GRG Motors researches the entire US, Europe and Japan for different companies who no longer wish to sell the car parts and related items individually, but rather in volumes.
That is where GRG comes in. They buy the whole inventory at wholesale rates, and turns around to ship and market these parts to different parts of the world. The company can obtain parts at less than half the going rates, but buys them in large quantities, such as 1,000 pieces for a particular automobile model's brake pads, and other units. The company then turn around and offer the same inventory to volume or retail buyers in other parts of the world. These can be sold for a previously-agreed amount, or a private auction can be set-up and bidding can commence. For example, a starting bid of 12 to 14 dollars with a quantity of 500 to 1,000 pieces can be set and the bid increases, while another auction can be happening for another item, or as the case may be- of the same item but at other levels of quantities and rates, and so on.
Thus, what the company wanted was a presence on the Web that showcased what the company is and what it does. But the company also wanted to go a step further and have a private section where actual auction transactions would happen.
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GRG Motors is in the auto parts and wholesaling business. They didn't want to get bogged down with having to learn how to use software to set-up their site, and at the same time they wanted to project a very credible image for the company, especially that people from different parts of the world will be taking advantage of the site and will definitely judge the company by the first means that they get in contact with it: its website.
They finally started the search for a good web design company that can capture their goals and implement it to their desires accordingly.
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As the saying goes, "achieving any great endeavor always starts with the first steap," GRG Motors decided that just as their website became more of a necessity, they would take the plunge and have a website set-up.
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The company decided that web designers and developers were the only way to go because of the back-end auction software that had to be run. There were three groups outside of HostPrepaid that were considered:
- Web design firms or freelancers
- Programmers
- Software companies and ASP (that offered these services on a rental-like subscription basis) operators
The web design firms said they could provide the customization and construction of the main site, as well as the transaction engine and back-end. The problem is that the charges were rather high, and rightfully so because of the work involved both in designing the main site, and programming the backend.
Programmers were those who specialized in the backend transaction engine, but by themselves couldn't produce a professional design for the front-end of the site, which was naturally very important because visitors judged a site not only by its function, but by its form, and how professional it looked. Engineers don't make for good artists. So unless the quality produced was very low, it was necessary for them to work hand-in-hand with graphic designers, which like the above option, ultimately resulted in a more expensive sum.
Alternative to the specialized and customized work web designers and programmers can do are the software companies and ASP (application software providers) that provide both a robust back-end software engine as well as a managed solution where they run the operations of the site, and also provide a design for the website in a superior degree. The problem is that while the first two options were expensive enough, this option is even much more expensive.
Enter HostPrepaid, which offered all the best that these options provided, but for free.
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Hostprepaid offered allt he best that the above options provided, and actually without the downsides. HostPrepaid provided the whole spectrum and package. First was the first-rate professional website customization and design. Only that there was one difference: HostPrepaid provided this totally free.
And GRG Motors can simply purchase HostPrepaid's Add-on services to have its auction back-end running, as well as have its new logo designed, at a very minimal cost, while attaining a very high quality.
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Armed with the unmatched value from HostPrepaid, GRG Motors decided to go with HostPrepaid, and in addition wanted HostPrepaid to handle the day-to-day operations of the site, and the company signed up for a maintenance contract. They instructed that they would provide HostPrepaid with pictures already in digital format of the parts that are currently available for sale or until the parts are sold to the highest bidder and are replenished with either new sets of parts or new inventories.
There was to be no direct "ecommerce front-end" payment transactions intended because everything is done through the bank, although they wanted the option available for a future inclusion. But the company took on HostPrepaid's add-ons to have a private back-end database-driven ecommerce auction engine software installed. It was to be made available only to hand-approved suppliers, buyers and related users.
Auction winners will have to provide GRG Motors with all the information regarding the transaction, such as bank accounts and other data before the transaction is consummated. Basically, they would bid on a particular part. The minimum number of parts that the bidders can bid will be approximately 500 pieces plus shipping, duty, taxes and other costs involved. A java applet would do the calculations to get the exact cost plus shipping and taxes. This is the extent of the functionality of the website in terms of front end manipulation. After that, development of the site went underway.
Continual communication was done as different stages of the website was finished, and as management of GRG Motors made some additions and requested modifications from the samples. The back-end auction engine was concurrently customized and added programming was done. GRG Motors officers and staff were able to see the development of the site as it progressed from their privately accessible viewing area of their website where they could see as their website was erected. It is also where they can make changes and the like.
The backend auction software was also being set-up and after the beta-version was available for examination, beta-testing began. This project took slightly longer because of the custom programming involved. After two weeks of testing, the auction engine was ready, and after minor cosmetic modifications were made upon GRG Motor's request, the website was completed and went live. There was a short period of testing while its first suppliers and buyers trickled in slowly at first, but which became more frequent as days progressed.
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From no website to a powerfully web-enabled business, GRG Motors had its website and its database-driven e-commerce backend bring not only the true world-class impact, but the kind of automation that brings in more revenues from the increased number of transactions the company can now handle without needing to add more people.
But the greatest upshot obtained by GRG Motors is that even though paying a web design firm the highest amounts rightfully justified the great impact and additional business their website has produced, they were able to get their website professionally and absolutely free through a prepaid hosting account from HostPrepaid, and then the simple purchase and installation of the auction backend transaction engine. Not to mention the other services available at a big discount to existing HostPrepaid member-clients.
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Many companies pretend to offer free web design but actually only provide free quotes or free mock-up designs and the like, and clients were still actually made to pay the full and hefty amounts if the prospect liked the design and became a customer (at least $800 to $3,000 or more for the first several pages alone).
HostPrepaid lets clients utilize its high-end, ultra-secure hosting services at the regular rates, and when clients pre-pay for 12 months, which they will eventually consume, with no surcharge and no added costs, HostPrepaid provides them with their professional-grade websites totally free of charge. And if the clients wants additional services above and beyond the standard offerings, (like auction software as described in this case study, or advanced logo design, etc.) they can easily do so also, and purchase any of HostPrepaid's various Add-ons.
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