A different ecom approach

5 replies
First post here after lurking, reading, and learning for a LONG time.

I figured however that it was time that I give back and this first post is how I'm doing that. I would like to offer an alternative approach to an ecom business that I do not see ANYONE talking about and this approach is how I launch new stores in a few days and have them exceeding 10k per month within another week.

As a native american woman I have a unique approach and look at things that is sometimes different than most "regular" americans. I am also a fan of people like Grant Cardone who I have also learned a great deal from.

To explain this approach let me first explain a few things. Do you want a business like General Motors, or like Ferrari? This is a comparison another person I have known has given me and shifted the way I think about almost everything. In 2008 there was the start of the global financial collapse that lasted quite a few years. General Motors, which sells every car it makes (cadillac and corvette included) on a basis of price (we're cheaper than the competition but better) needed a bailout from five different nations around the world to stay in business. Ferrari, which obviously sells some of the most expensive cars made, sold out of every single vehicle it made with a waiting list.

Do you want a business like GM or like Ferrari? The question is important. It means, "sell more expensive stuff"

More than that it means to sell, to coin a phrase, "premium products at a premium price." (not sure where I heard that from but it's not mine)

How I do it is I look for things that SHOULD be packaged together that often are not. Hunting blinds need chairs and a few other things as an example. I sell the hunting blind at a premium price, selling only the top of the line hunting blinds, and then "give away" the other stuff "free."

My profit margins as a percentage are A LOT higher, on products that have a MUCH larger price point. This is a double wammy that results in making money hand over fist with little effort because I am almost instantly viewed as the top/best supplier in the market. But wait, it gets better.

It is now a simple matter of putting up some ads and driving traffic to get the ball rolling ... but now lets do things that NO OTHER ecom company is doing either.

Now lets add into the mix the kinds of email marketing that many of us here on WF are familiar with and you sell even more of your higher priced higher profit margin products. Want this to get even more powerful?

Now also sell information products relevant to the market.

We are now in a "best of all worlds" scenario. Selling physical products at high margins AND selling information ... all doing it using time tested and proven techniques that have worked for a very very long time.

I hope this helps, and if anyone has any questions I'm available to help :-)
#approach #ecom
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  • Profile picture of the author Ged3
    Wiyakalutawiyan,
    thank you for sharing your experience with us.


    I think that you have hit on a very good point especially during a recession - concentrate on quality products that people are willing to spend their money on.


    Aiming for the top end of the market is probably best as your audience there is more concerned with very high quality than price.


    Wheras if you try to sell lower qualiy cheaper products its often a race to the bottom as other competitors undercut you.



    I am very pleased you are finding success with this strategy!


    Kind Regards
    Ged
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    • Profile picture of the author wiyakalutawiyan
      I can still remember during the 2008 financial collapse and people acting like the world was ending walking into a shop in La Jolla California and seeing ... I kid you not ... little more than a pile of polished granite rocks three feet tall that cost 12,000. People with money always have money. It creates a much more recession proof business.

      (Edit to fix typo)
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  • Profile picture of the author Ged3
    Yes, good point and very wealthy people are buying collectibles such as paintings, rare coins, stamps autographs etc. possibly to diversify from financial markets - the price of a lot of collectibles have been increasing in value over the last year!


    Best Regards
    Ged
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    • Profile picture of the author wiyakalutawiyan
      This goes beyond just collectibles. I'm talking more about being in the very high end of the market and making sure that all marketing and advertising is designed to target the high end buyer. Target the Ferrari driver not the Chevy driver (as an example)
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  • Profile picture of the author Ged3
    Yes, I know what you mean.


    I mentioned rare collectibles because a lot of them have not risen in value for a decade and since inflation has risen so much collectables have been a lot more popular and people are prepared to pay a lot more for them - partly as a hedge against inflation - $100 in a year may jusst have $90 of purchasing power compared with today - but rare tangible assets keep their value.


    Best Regards
    Ged
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