Continued from page 1
At $10, our projected weekly earnings are $10,000. When we sell
product at $50, we know that we can earn $25,000 per week. Most importantly, we know that we can earn $29,250 when our product is priced at $45.
With
imaginary testing we have done on our imaginary product, we can easily see that selling our product at $45 per item will earn us more money over
long haul.
Thus, when we make
decision for a national rollout of our product, then we will price our product at $45.
Of course, this is a very simplistic analysis of
point I am trying to make. Though simple, I believe this analogy will help you understand
methods of developing a product's prices.
PROMOTION
Promotion, on
other hand, is
process of notifying
consumers for your product or service of your availability to serve them.
Methods of promotion vary distinctly and should be arranged to meet very specific goals.
As with product, place and price, promotion should not be left to chance. You should test every ad, every media, and every price point to determine
best bang for your promotional dollars.
HEADS UP!
If you are an online promoter or marketer, please factor in
most important element concerning
cost of your promotions.
What element is that? Your time!
Value your time at a certain dollar amount, and figure in your time into
cost of your promotional accounting.
I say this because too many online promoters lose sight of this concept and spend 20 hours to generate one sale while using free advertising. Even if you rate your time at
federal minimum wage, then you will have invested $105 of your time for one sale that might only net you a gross sale of $45!
ARE YOU TRULY A MARKETER OR ARE YOU JUST A PROMOTER?
Most people who run a business on
Internet call themselves marketers. Yet, most of these same people are really just promoters wrapped in
label of a marketer.
True marketers do not promote without a lot of advance work. They spend time planning, testing and measuring their actions and results to get
most out of every dollar spent and earned.
Entrepreneurs finesse
art of marketing as they build their company into a major enterprise.
If you are a promoter who does not keep an eye on
total marketing equation, then you are bound to fail.
If you do call yourself a marketer, then do what a professional marketer does. Make sure that every dollar spent is spent well. Make sure that every dollar earned is put to good use. Market well so that when
people of
next generation look at your life, they will see a fine example of a successful entrepreneur that they will strive to emulate.

About the author: ----------------------------------------------------------------- Stone Evans owns the Home Business Resource Directory where you can find everything you'll ever need to start, run and grow a home based business at: http://www.Home-Business.com -----------------------------------------------------------------