FBA: Private Label Question

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I'm selling through Amazon FBA and thinking on launching my second product with my PL brand.

My actual product is a "garlic press" (just an example) and competition is not too big, as I nicely carved out my piece of the cake.

I also found out that competition is mainly made of many different variations of the same product so here's my question:

Would it be a smart move from me to introduce a Second Garlic Press under my own brand?

My way of doing this would be by getting a different product made of different materials, kind of having a LOW-RANGE PRODUCT and a HIGH-END PRODUCT, with a MID-RANGE PRODUCT being possibly my third model on the line.

I've seen other sellers doing this with other type of products and I wonder if is this a reliable way to increase my online income stream..

Share your thoughts if you want, I'll greatly appreciate it

Cheers
#fba #label #private #question
  • Profile picture of the author gange10
    Hi, yes I do this with one of my products and get a lot of piggy back sales. And its always a good idea to increase the brand.

    Keep things related and more sales will come.

    David
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  • Profile picture of the author Seantrepreneur
    haha "garlic press" I see you've been drinking the Scott Volker Kool-Aid.

    I think this is a good way to proceed. I would just keep an eye on your margins and quality. If the low range product is crap it could hurt the sales and reputation of your higher range product. It's a little tricky without knowing what the product is, but I know that's top secret among us PLer's.
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    • Profile picture of the author rumifdx
      Originally Posted by Seantrepreneur View Post

      haha "garlic press" I see you've been drinking the Scott Volker Kool-Aid.

      I think this is a good way to proceed. I would just keep an eye on your margins and quality. If the low range product is crap it could hurt the sales and reputation of your higher range product. It's a little tricky without knowing what the product is, but I know that's top secret among us PLer's.
      I knew someone would notice it! Scott is a great guy...

      Thanks!
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  • Profile picture of the author DWaters
    Yes this certainly makes sense. At many levels and with many different products you will see companies selling various models of similar or the same products. Does Ford sell just one automobile? Does Sony just sell one camera?


    Expanding your product line should be a good move if done wisely. As Sean mentions above you want the quality to still be good.
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    • Profile picture of the author FBAJesse
      I personally disagree with that strategy. Why would you want to compete with yourself? There are only x number of people that are going to buy a "garlic press" it's your job to convince them to buy the one that makes you the most profit. Why would you want to spend time and energy in a product that could potentially take away from that.

      Does Ford sell just one automobile? Does Sony just sell one camera?
      This is a terrible comparison, because yes when they opened their doors they did just ONE product in a niche and did it very well. Once they established an extremely detailed profile of their target client base they were then able to segregate it.

      Meaning they now know that of x number of people who are going to buy cars x% of them will only buy red cars and GM offers red cars so then they added to their product line. Now they no longer just make all one color cars. Now they making 2 different versions in essence a competing product, but necessary to compete with the competition and changes in customers needs. This however is only because they completely understand their market and have extreme competition that also understands this. In 99% of the cases on Amazon this would not be true. So if you're going to spend time and money on a new product launch my advice is co with a complimentary product. Such as a "Cutting Board."
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      • Profile picture of the author rumifdx
        Originally Posted by FBAJesse View Post

        I personally disagree with that strategy. Why would you want to compete with yourself? There are only x number of people that are going to buy a "garlic press" it's your job to convince them to buy the one that makes you the most profit. Why would you want to spend time and energy in a product that could potentially take away from that.



        This is a terrible comparison, because yes when they opened their doors they did just ONE product in a niche and did it very well. Once they established an extremely detailed profile of their target client base they were then able to segregate it.

        Meaning they now know that of x number of people who are going to buy cars x% of them will only buy red cars and GM offers red cars so then they added to their product line. Now they no longer just make all one color cars. Now they making 2 different versions in essence a competing product, but necessary to compete with the competition and changes in customers needs. This however is only because they completely understand their market and have extreme competition that also understands this. In 99% of the cases on Amazon this would not be true. So if you're going to spend time and money on a new product launch my advice is co with a complimentary product. Such as a "Cutting Board."
        You have some valid points.

        However, in the hypothetic scenario in which I have multiple types of a specific product, I wouldn't feel like I'm competing "against myself", since I will be actually multiplying my chances to sell one of my products, because they're not identical and as I pointed out they all have different characteristics and build materials, so with these I will be addressing more than one type of customer: while someone will conform with the $20 type (plastic made) some other will prefer the $50 type (stainless steel made) for its stronger materials and more appealing design, while a third type of customer will likely fall in the middle and choose the $35 type (plastic+brass made).

        Once again, I'm not competing against myself since my different range of products will target different type of audiences.

        And as per the "cutting board" thing is something I'm already looking into it, although my specific "garlic press" product doesn't have much of accessories.

        Thank you for your response.

        PS: The Ford&Sony example is appropriated to me even though it may sound a little exaggerated, but is definitely not "terrible" as you described it
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        • Profile picture of the author FBAJesse
          Perhaps I was a little rash with my use of the word "Terrible." I was only trying to illustrate a point that extreme level of product diversification and market segregation is reserved for a very select group of well established companies. Maybe your part of this group maybe your not.

          I can see having a customer choose between a $20 purchase vs a $50 purchase might be a leap and there is probably some value to having both to ensure you capture both the high end and low end side of the market. However in my opinion a $20 product vs a $35 product is not large enough. Personally if it were me I would rather invest my time and money in establishing that my product was worth $35 (and deliver) rather than sourcing, stocking and marketing an inferior product. $20's is not an impulse buy that means if you can establish enough value with your $35 "garlic press" you could easily pull all the $20 buyers up to the $35 price point.

          Obviously I don't know your product or your market and I'm speaking in generalities. $15 is not a huge leap for someone who has $50 to spend and is looking for the best product it can buy. Especially if its a one time purchase like a no quotes garlic press, but it IS a huge leap if you're selling a multi-purchase product like copy paper for instance. In which case I know I'm going to have to buy it again soon and I'll see if the $20 version fits the bill before I spring for the $35 version.

          The best example I can think of to illustrate this point is fuel. Let's say your car's manual says only use premium fuel and like a good car owner you always pick the middle nossel. Now what happens when you go to a gas station that only has standard or premium? You are faced with a choice between ok and the best. Well if you're driving your car to work every day and fill up once a week you might just want to know how well the "ok" actually performs. On the flip side of that coin if you are about to enter a once in a lifetime race where you could win $100,000 do you risk the standard or buy the premium?

          Most obviously the premium because it's a one time purchase and because of the great marketing by Shell and Exon you have a perceived value its worth the money. "They say its better. I'll go faster!" While in actuality that incredibly small difference in octane for that one tank doesn't really make a performance difference at all.

          It sounds like you already have your mind made up on this though and are only posting here to make you feel more confident in your decision. If so I hope you keep us updated with how it plays out.

          And as per the "cutting board" thing is something I'm already looking into it, although my specific "garlic press" product doesn't have much of accessories.
          Don't think accessory. Think laterally. A cutting board is not an accessory to a garlic press a "garlic press cleaner" would be more of an accessory. Cooking enthusiasts use garlic presses they also use cutting boards. EVERY product has a lateral product. The cave man who buys sticks for his fire might also want rocks. They have absolutely nothing to do with fire, but they sure do hep keep his fire in the pit
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        • Profile picture of the author DWaters
          Originally Posted by rumifdx View Post

          You have some valid points.

          However, in the hypothetic scenario in which I have multiple types of a specific product, I wouldn't feel like I'm competing "against myself", since I will be actually multiplying my chances to sell one of my products, because they're not identical and as I pointed out they all have different characteristics and build materials, so with these I will be addressing more than one type of customer: while someone will conform with the $20 type (plastic made) some other will prefer the $50 type (stainless steel made) for its stronger materials and more appealing design, while a third type of customer will likely fall in the middle and choose the $35 type (plastic+brass made).
          Once again, I'm not competing against myself since my different range of products will target different type of audiences.
          t
          Yes. I agree that you are not competing against yourself but expanding your potential customer base by having a similar product to offer. Having multiple products at various price points is a proven method to build a business.
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          • Profile picture of the author FBAJesse
            Originally Posted by DWaters View Post

            Yes. I agree that you are not competing against yourself but expanding your potential customer base by having a similar product to offer. Having multiple products at various price points is a proven method to build a business.
            Again I disagree and I challenge you for your source of "proof." Unless what you actually meant was having multiple products is a proven method to build a business, but having multiple variations of one is actually proven to have the exact opposite effect.

            I don't want to get into the full study, but if you want more information read The Myth of Fair Value by William Poundstone. According to a study he published when a consumer is given multiple choices they almost alway go for the mid range option.

            So let's assume brand marketing was done correctly and a customer decides to buy a Brand-X product. He is now faced with a $25 product a $35 product and a $50 product. The $35 product will almost always get the sale. I can't remember the exact numbers of the study, but the $25 product will also get a small percentage, but the $50 product get almost none. Alternatively if they had made their decision to buy Brand-X and the only option was a $50 product that will take the sale 100% of the time.

            As I mentioned above there is a little merit to capturing the high and low end of a market depending on your product, but because the original question stated:

            I also found out that competition is mainly made of many different variations of the same product
            I still stand by "Why on earth would you want to introduce another product variation!" That is the self stated number one competition.
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