| In our scramble to find a way to offer | | | | reason for that. If you sell more than 3 |
| the lowest prices on the Internet, we | | | | boxes a year, I'll EAT some.Unique is |
| often overlook the basic steps that we | | | | Rain Barrels made in Maine. It's Exotic |
| should be taking BEFORE we even offer a | | | | Cheeses imported from Italy. Silk |
| product for sale.We also overlook | | | | Parisian Lingerie. Things you don't see |
| something even more important: you don't | | | | every day, but would be proud to give as |
| HAVE to have the lowest price in order | | | | a gift.Then there's "common". Everybody |
| to make great sales. Following are some | | | | and their grandmothers are selling |
| things I do before and after determining | | | | Alabaster Figurines on the Internet. Do |
| my bottom line. I sell by having | | | | they sell? Sure, in a limited fashion. |
| products drop-shipped for my sites, | | | | Do you want to sell them? Not if you |
| which works VERY well, but these steps | | | | want to make any real money.In my |
| should be covered no matter your | | | | experience, unique products, like Rain |
| distribution method.Should you be | | | | Barrels and Parisian Lingerie, DO sell. |
| selling this item now?Snowboards don't | | | | So do Coleman Sleeping Bags, and Conair |
| sell well in the summertime. You may | | | | Hair Dryers. BRAND NAMES sell. Look at |
| have a hard time moving a pair of roller | | | | your potential product, and ask yourself |
| blades in January. Don't waste your time | | | | honestly if YOU would buy it on the |
| and your site space marketing products | | | | 'Net.Set your priceTake the five lowest |
| out of season. Ask your supplier for a | | | | prices you collected on a product in |
| little historical information regarding | | | | your list that has survived the above. |
| the best time to sell their products. | | | | Calculate your estimated cost, then |
| Believe me, to everything, there IS a | | | | subtract that from the lowest price. If |
| season. They have the figures. If they | | | | you don't see at LEAST 15% profit, don't |
| don't want to share this info with you, | | | | bother.If you do, there are a couple of |
| find another supplier.Identify your | | | | ways to proceed. You can undercut the |
| costsProfit isn't just the difference | | | | lowest price in your "venue" by a bit, |
| between wholesale and retail. You have | | | | and hope to "kick off" the product and |
| other costs to consider. Think about | | | | get yourself noticed. Chances are, |
| every penny you spend in order to get | | | | though, that the following week you'll |
| that product to the customer's door, and | | | | find that someone has undercut YOUR |
| plan accordingly. For example, your | | | | price by just a bit. That becomes a |
| merchant account probably costs you | | | | losing game.I generally set up a couple |
| about 2.2% plus 30 cents per | | | | of "loss leaders". These are desirable |
| transaction. On an item you'll sell for | | | | items (in my general product line) that |
| $20, that's 74 cents. Don't forget that | | | | I sell dirt cheap just to bring in |
| calculation when pricing the item. Are | | | | customers. Then I price the rest of my |
| you warehousing the item? How much is | | | | products at the second or third lowest |
| that space costing you per item per | | | | price in my venue. The customers come in |
| month? Did you spend money stocking up | | | | for the loss leaders, and then I can |
| on shipping materials? How much per | | | | market everything else to them via |
| unit? What about advertising? Monthly | | | | email. I spend a lot of time making my |
| hosting costs? You may need to project | | | | site look better and easier to navigate, |
| some estimated sales in order to arrive | | | | and pay a great deal of attention to my |
| at some of these figures.This may seem | | | | customers.That makes me more reputable |
| very complicated, but it's really not. | | | | in the eyes of the customer. You'll find |
| Just take the figures one at a time, and | | | | that people don't mind paying just a |
| you'll arrive at a wholesale cost plus | | | | little more if they feel comfortable in |
| an amount that, when added together, | | | | your store. They don't like to worry |
| becomes your initial ESTIMATE of "cost | | | | that they're buying from a "hack" who |
| of goods sold". Identifying all your | | | | may not deliver. Nothing says "hack" |
| costs is critical if you want to price | | | | like a cluttered, confusing |
| your products properly.Check out the | | | | storefront.Follow upAfter you've sold an |
| competitionSearch on the item you plan | | | | item for a month or two, revise that |
| to sell. Check out the competitors' | | | | "cost of goods sold". Measuring past |
| prices. But DON'T get caught up trying | | | | performance is just as important as |
| to beat the wrong competitor. You need | | | | setting the correct price to begin with. |
| to stay within your "venue".My stores | | | | If sales drop, recheck your competition. |
| are built in Yahoo Shopping ( 90% of my | | | | If that's not it, drop the product, or |
| traffic comes from there. When I seek | | | | shelve it until the "season" comes back |
| out my competitors, I look for other | | | | around. Don't get sentimental about your |
| businesses like mine ONLY in Yahoo | | | | products, and NEVER just let your store |
| Shopping. Then I compare.If I'm thinking | | | | sit there in limbo once it starts to |
| about selling a product, and I get 1,500 | | | | make money. This is a dynamic business; |
| hits in 400 stores on that item in Yahoo | | | | stay on top of it!A last word (or |
| Shopping, forget it. If I get a hundred | | | | three)Retail pricing on the Internet is |
| hits in 20 to 40 stores, I'll look into | | | | so fraught with permutations that it |
| it further.So check out the competition, | | | | would be impossible to cover everything |
| narrow down your product list, make a | | | | here, even if I KNEW everything. The |
| note of the five lowest prices you find, | | | | steps above are just the basics of a |
| and then ask yourself another | | | | process that works for me. Hopefully |
| question:Is anybody going to buy this | | | | something here will strike a chord and |
| thing?This doesn't have much to do with | | | | work for you as well. Patience and |
| pricing, but it should be said.When | | | | persistence are the keys to a successful |
| considering products, there's unique, | | | | Internet business, so hang in there, and |
| and then there's too unique. Yak Cheese | | | | don't quit the day job for at least a |
| may sound like something that nobody | | | | couple of weeks. ;o)I hope this helps in |
| else has for sale on the 'Net. There's a | | | | your future marketing decisions. |