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