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Month: February 2018

Pricing Your Products

Posted on February 18, 2018 in Uncategorized

In our scramble to find a way to offer the lowest prices on the Internet, we often overlook the basic steps that we should be taking BEFORE we even offer a product for sale.

We also overlook something even more important: you don’t HAVE to have the lowest price in order to make great sales. Following are some things I do before and after determining my bottom line. I sell by having products drop-shipped for my sites, which works VERY well, but these steps should be covered no matter your distribution method.

Should you be selling this item now?

Snowboards don’t sell well in the summertime. You may have a hard time moving a pair of roller blades in January. Don’t waste your time and your site space marketing products out of season. Ask your supplier for a little historical information regarding the best time to sell their products. Believe me, to everything, there IS a season. They have the figures. If they don’t want to share this info with you, find another supplier.

Identify your costs

Profit isn’t just the difference between wholesale and retail. You have other costs to consider. Think about every penny you spend in order to get that product to the customer’s door, and plan accordingly. For example, your merchant account probably costs you about 2.2% plus 30 cents per transaction. On an item you’ll sell for $20, that’s 74 cents. Don’t forget that calculation when pricing the item. Are you warehousing the item? How much is that space costing you per item per month? Did you spend money stocking up on shipping materials? How much per unit? What about advertising? Monthly hosting costs? You may need to project some estimated sales in order to arrive at some of these figures.

This may seem very complicated, but it’s really not. Just take the figures one at a time, and you’ll arrive at a wholesale cost plus an amount that, when added together, becomes your initial ESTIMATE of “cost of goods sold”. Identifying all your costs is critical if you want to price your products properly.

Check out the competition

Search on the item you plan to sell. Check out the competitors’ prices. But DON’T get caught up trying to beat the wrong competitor. You need to stay within your “venue”.

My stores are built in Yahoo Shopping (http://store.yahoo.com). 90% of my traffic comes from there. When I seek out my competitors, I look for other businesses like mine ONLY in Yahoo Shopping. Then I compare.

If I’m thinking about selling a product, and I get 1,500 hits in 400 stores on that item in Yahoo Shopping, forget it. If I get a hundred hits in 20 to 40 stores, I’ll look into it further.

So check out the competition, narrow down your product list, make a note of the five lowest prices you find, and then ask yourself another question:

Is anybody going to buy this thing?

This doesn’t have much to do with pricing, but it should be said.

When considering products, there’s unique, and then there’s too unique. Yak Cheese may sound like something that nobody else has for sale on the ‘Net. There’s a reason for that. If you sell more than 3 boxes a year, I’ll EAT some.

Unique is Rain Barrels made in Maine. It’s Exotic Cheeses imported from Italy. Silk Parisian Lingerie. Things you don’t see every day, but would be proud to give as a gift.

Then there’s “common”. Everybody and their grandmothers are selling Alabaster Figurines on the Internet. Do they sell? Sure, in a limited fashion. Do you want to sell them? Not if you want to make any real money.

In my experience, unique products, like Rain Barrels and Parisian Lingerie, DO sell. So do Coleman Sleeping Bags, and Conair Hair Dryers. BRAND NAMES sell. Look at your potential product, and ask yourself honestly if YOU would buy it on the ‘Net.

Set your price

Take the five lowest prices you collected on a product in your list that has survived the above. Calculate your estimated cost, then subtract that from the lowest price. If you don’t see at LEAST 15% profit, don’t bother.

If you do, there are a couple of ways to proceed. You can undercut the lowest price in your “venue” by a bit, and hope to “kick off” the product and get yourself noticed. Chances are, though, that the following week you’ll find that someone has undercut YOUR price by just a bit. That becomes a losing game.

I generally set up a couple of “loss leaders”. These are desirable items (in my general product line) that I sell dirt cheap just to bring in customers. Then I price the rest of my products at the second or third lowest price in my venue. The customers come in for the loss leaders, and then I can market everything else to them via email. I spend a lot of time making my site look better and easier to navigate, and pay a great deal of attention to my customers.

That makes me more reputable in the eyes of the customer. You’ll find that people don’t mind paying just a little more if they feel comfortable in your store. They don’t like to worry that they’re buying from a “hack” who may not deliver. Nothing says “hack” like a cluttered, confusing storefront.

Follow up

After you’ve sold an item for a month or two, revise that “cost of goods sold”. Measuring past performance is just as important as setting the correct price to begin with. If sales drop, recheck your competition. If that’s not it, drop the product, or shelve it until the “season” comes back around. Don’t get sentimental about your products, and NEVER just let your store sit there in limbo once it starts to make money. This is a dynamic business; stay on top of it!

A last word (or three)

Retail pricing on the Internet is so fraught with permutations that it would be impossible to cover everything here, even if I KNEW everything. The steps above are just the basics of a process that works for me. Hopefully something here will strike a chord and work for you as well. Patience and persistence are the keys to a successful Internet business, so hang in there, and don’t quit the day job for at least a couple of weeks. ;o)

I hope this helps in your future marketing decisions.

Product Packaging Tips

Posted on February 17, 2018 in Uncategorized

Product packaging is designed to protect a product. However, it is possible to use the packaging of a specific product to market it to consumers as well. You can use various product packaging tips in order to find the perfect balance between marketing your product and packaging it properly. In order to pack correctly, you will need to know how to analyze the market. You will also need to know what your customers want. Lastly, you will need to know how to pack in a way that allows the customer to remove the product easily.

Understand Your Product

Before you can package your product correctly, you will need to look at how other related things are packaged. Look at these product packaging ideas and incorporate them with product packing ideas of your own. You can take advantage of market research so that you can find out what products are successful. Once you have found out which things are more successful, you can find out what parts of their packaging makes them more successful.

You also need to consider the size of the product packaging. Shelf space at different retail stores is exceedingly expensive. Because of the price of retail shelf space, you will need to make sure that the packing is as small as possible. Keeping the packaging small can ensure that you get your money’s worth.

It can also help your packing cause to stay updated on new product packaging ideas and new product packaging technology. Doing so can help you keep up with competition related to your industry and product.

Understand Product Packaging Laws

How you pack your product is affected by numerous regulations and laws. Some of these laws only pertain to specific products. It is important for you to understand the laws and regulations of packing before you start to pack your product. It can hurt your cause if you create packing that is not legal.

The Consumer Product Safety Commission has set laws into play that only apply to the packing of specific products. The Food and Drug Administration has done the same. This is to ensure the safety of customers and the product in general. Product packaging laws normally apply to various medications and household chemicals. Be safe by knowing the requirements of your product’s packing.

Work with Retailers

There are a lot of large and popular retailers that have some requirements as far as packing is concerned. These requirements may deal with the size of the packaging, the images on the packaging, and the description printed on the packaging. The retailers may also require products to include whatever the stores need to reduce product thievery.

Just Ask These 4 Essential Questions To Find The Best Affiliate Product For You

Posted on February 16, 2018 in Uncategorized

If you’re just starting out in the internet marketing world, then it’s likely that you’ll turn to affiliate marketing for some quick income. Affiliate marketing is easy to do, once you’ve chosen your product. But from all the offers available, how do you find the best affiliate product for you?

Well, that’s easy too, you just need to answer these four essential questions, to make sure that your affiliate career gets off to a great start!

No.1. Are You Interested In The Product You’re Marketing?

This definitely comes first. Just as when choosing a product to create yourself, you need to pick an affiliate product that you’re interested in or already know about. For example something connected with one of your hobbies or leisure activities, or previous employment.

Having this kind of connection to the affiliate product, will help to bring your personal experience into your promotion and will maintain your own interest when you’re doing your marketing.

You’ll find this of most help if you’re using the regular blogging and article marketing, which is recommended for the best affiliate product promotion. It’s always so much easier to write about something with which you’re familiar, rather than trying to make up a post for something that you don’t know about and have no real interest in. If you do go down that route, you’re likely to find your initial enthusiasm waning quite quickly and your promotional output slipping as well.

No.2. What Is The Commission Rate?

When you’re looking for the best affiliate product, you’re intending to make a profit. That means earning more from sales than you pay out in expenses. So, obviously, the commission rate that’s paid, coupled with the products selling price, is of prime importance.

The way to approach this step to finding the best affiliate product, is to take the subjects that interest you and compare the different affiliate offers in those markets, until you find the higher value products and their commission rates.

Obviously, at any given commission rate, the more expensive the product, the more profit you make. So, generally, the higher value products will be the best bet. However, you’ll also need to assess the product’s saleability as well (No.3.), in order to decide the overall profitability of the product.

This is something to be learnt from experience and a good step right now would be to have a look at the range of offers on ClickBank.com and familiarize yourself with the sales statistics they give for each offer.

No.3. Will The Product Be Saleable?

Here you need to consider the saleability of the product. By that I mean, is it likely to be popular. Is it something that people will want and is it something that your target market will find both affordable and value for money.

These are the key elements that will achieve the product sales, once the prospects have arrived at your site. Another aspect that will make sales easier, is if the product is seen as unique or is easily recognizable to customers, for example by having a brand name or trademark.

Picking a product that has this sort of individuality, will make it easier for you to carry out your search engine optimization and will bring more focused traffic to your site, than will a general product description.

No.4. Is The Product Merchant Well Established?

If you are right at the beginning of your own internet business, the best affiliate product to choose will be one from an established seller. Here you’ll get the benefit of knowing that all the production and commission systems are set up and bug free, and all you need to do is concentrate on making the sales.

Well established merchants will often have good quality sales aids, like ads and banners and sometimes offer affiliate help lines. They’re also more likely to have the benefit of some brand recognition, which will help your own sales and marketing.

So, if you’re ready to start, two of the best known places to take a look at are ClickBank.com and Commission Junction. Take some time and look around these sites to see how they work, what’s on offer and how the commissions are paid.

Then, wherever you choose your product remember to answer these four questions to find the best affiliate offer for you.

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