Pricing Your ProductsWritten by David Bell
In our scramble to find a way to offer lowest prices on Internet, we often overlook 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 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 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 best time to sell their products. Believe me, to everything, there IS a season. They have figures. If they don't want to share this info with you, find another supplier. <> Identify your costs Profit isn't just difference between wholesale and retail. You have other costs to consider. Think about every penny you spend in order to get that product to 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 item. Are you warehousing 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 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 competition Search on item you plan to sell. Check out competitors' prices. But DON'T get caught up trying to beat 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 competition, narrow down your product list, make a note of 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 'Net. There's a reason for that. If you sell more than 3 boxes a year, I'll EAT some.
| | Internet Freebies and Cheapies to Help You Grow Your BusinessWritten by Dina Giolitto, Wordfeeder.com
Do you dream of running your own business? Well, get ready to make that dream reality. The internet has leveled playing field so that just about anyone can bring in big bucks doing what they love. Welcome to global marketplace! Thanks to web, now you can make business connections wide world over for virtually no money... without ever leaving your home or office. What can you sell on internet that will put you on path to prosperity?- Products: books, CDs, greeting cards, photo frames, gifts and collectibles, fashions... list is endless! - Services: writing, graphic and web design, coaching, administrative assistance, marketing, tech support, tax preparation... if you have a skill, you should be marketing it on net. - Memberships: to a technology forum, to a shopping club, to a pet lovers' group, to a freelance bidding auction, to a service swap, to an entrepreneur's network, to a dating service - E-books: for dog lovers, for knitters, for aspiring millionaires, for handymen, for cooks, for astrology buffs... there is no end to what people will pay to learn about! Brainchildren are born on web every day. You don't even need a nest egg to make money putting big ideas to work. What you do need: lots of free time, some computer knowledge, a credit card (yes, you will have to make a few low-cost purchases), a network of supporters with varied skills, a problem-solving nature and a can-do attitude. If you're already on your way to becoming an online success, great! No matter what stage your business is in, here are 10 no-cost or low-cost resources to help your profits soar. 1. An Earthlink Web Domain. What's an online business without a website? There are tons of low-cost domains out there, but I use Earthlink to run my own business and I'm happy with it, so that's one I'm featuring here. For a low monthly fee, Earthlink offers a fantastic, all-inclusive web-hosting package. What you get: your own domain name, website-building software that's easy to learn, up to 30 mailboxes, and tons of enhancements including visitor counters, form scripts, file uploading and a large selection of background designs. Plus, Earthlink gives you tons of free hints, resources, tutorials and advice on how to promote your business online. 2. Microsoft Outlook. I can't fathom how anyone would manage their company email without this program. It's super-fast, offers plenty of storage space and can handle large graphic files. Open multiple email windows and copy contents of one into other! Sort your emails by field and deposit them into separate folders that you create and label for optimum organization. View contents of each email without having to open each one. Block unwanted emails from entering your Inbox, or set your auto-reply for when you're away. Managing your contact addresses is a snap - and so is creating group lists for easy bulk-mailing! Can you tell I'm enamored with this program? If you bought your computer in last five years, Outlook probably came with your Windows package... so if you haven't clicked on program yet, do it NOW! 3. Craigslist.org. I don't know who Craig is, but God bless him for providing a F-R-E-E classified advertising forum for world's internet users. Craigslist is secret to my success and it can be yours, too. Post information about your business services to major cities around globe... for no money at all! Find people who have skills you need to build your online presence. Buy and sell anything. Broadcast your name and contact info, or be anonymous if you're shy type! I can't tell you how many cool opportunities I've found through Craigslist. Don't waste another minute - post an ad today. 4. Ezinearticles.com. Want to establish your credibility on internet and advertise your website in process? Ezinearticles.com offers a free article posting forum where you can showcase your skills and ideas. Write articles yourself, or pay a writer to write them for you. Either way, you get chance to present your professional know-how as well as read articles written by other web experts. It's a great way to swap information, promote your site, and make a name for yourself!
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