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    Home Business: Wholesale Product Supplier
       January 9th, 2008

    People often misunderstand the meaning of the word “wholesale” when they are eager to start a home business.

    So, let’s find out what’s that magic word that means buying products at a cheaper price, selling them thus getting money.

    Many people think that if they find a wholesale supplier, they will buy the products at unbelievably low prices and will be the only ones that can do it. Thus they think they can earn millions within weeks and then simply retire and live a happy life. No way. What they actually find out shortly after starting a home business is that anyone has to compete with huge companies. They find out one simple rule: there is no market without competition.

    People find out that huge companies sell products at prices that are even lower than the prices provided by their wholesale supplier. What they do? They never try to find out why, they simply go round saying the supplier is cheating on them etc. But in fact, the supplier is not unfair!

    Here comes in the notion “wholesale level price”. There is a very good reason why huge companies can sell products at lower prices than home businesses. And this fact has to be faced sooner or later – a small business IS NOT ABLE to compete with a huge one.

    As I’ve already mentioned, there are so-called price levels. For example, if you buy 1 product from your wholesale supplier for $1, do you think that a company that buys 1000 products will pay $1 per item. NO. That’s the thing. You are sold products at the first wholesale price level. And if a company buys much higher quantities of the same product it gets them much cheaper – it enters 2, 3, 4th etc price levels (depending on the quantity of the purchase). Do you now understand two things: wholesale suppliers do not cheat and there is competition between a small and a huge business?

    So, is there any solution? Of course, there is! Sales is much more than just selling products at the lowest price imaginable. In fact, selling is a mixture of finding the right product (or a few products). It is even more than that. It is about giving your customer confidence in your service. But what is still important for you? The most important thing is to be confident in your wholesale supplier, because unless you are, you cannot provide your customers with a trustworthy service.

    You can attract visitors by creating a good, cozy and fast web-page that will ensure that customers will spend more time on it and thus the possibility of a purchase increases.

    You have to learn the competition. Do not try to find the lowest prices on the Internet. Instead, try to find out the prices of your competitors. And then again, do not try to win the competition by cutting them, just try to attract visitors in other ways. The best thing to do is create a reliable aimed web-page.

    There are no wonders in business. If people try to prove that there are, they are either cheating on you or try to sell something. The thing that really matters is you treatment of the customers. If you understand that they are much more than just a source of money, then you will be successful. You will simply find out what they want.

    Sell What People Want, NOT You Like
       January 8th, 2008

    I cannot say that I’m the oldest and the most experienced survivor of the Internet business and thus can predicts what is going to happen there tomorrow. But there is one thing I know for sure (besides me this very thing puzzles millions of individuals worldwide). To tell you the truth, I consider this very issue to be the greatest puzzling factor of all the selling processes. So the question is: WHAT TO SELL?

    Basically, there can be no “right” or “wrong” answer to this question. But there are a few pieces of advice I can give you.

    A great number of people get extremely focused on 4 elements:

    • Sell the stuff they personally like
    • Sell the stuff they know at least something about
    • Sell the stuff the personally consider to be great
    • Sell the stuff they are sure to be “The Bestselling Internet Stuff.”

    In all four cases there is one basic mistake: the overestimation of the personal interest. What I am talking about? Why do they think that the stuff they are interested in should be interesting to other people over the Internet? As a rule, it is not, and people get stuck selling products no one needs. While there is no demand, there is no effective selling. This is the basic rule every one should stuck to.

    Now let’s look through these 4 issues (the above mentioned 4 elements).

    1. Narrow vision will lead to the narrowing of the market opportunities. A person might open a store and that’s it. Instead of developing and enlarging it, he/she will just sell the stuff he/she likes when he/she could have done so much more. What needs to be done is to broaden the interests and try to explore new markets.

    2. The most important thing to understand is that each business involves constant studying and learning new things. Every day you have to find out something new, business is about reaching new horizons and it is really crucial to be successful. You don’t have to know the product in depth, but you MUST know how to sell it!

    3. In the Internet business the “coolest” and “hottest” thing are sold EVERYWHERE. The competition is unbelievable. If you keep selling the hot stuff no one needs but every one sells, you will definitely fail. Try to find products the customers are really interested in even though they may seem “uncool” at first sight.

    4. The wrong way is to find out the Internet bestsellers and sell them. Do you really think that other sellers don’t know about these bestsellers? They do. And if they do, they sell these products as well. It is not the right way to start business. So look at these lists and go the other direction. Sell something new, something that might be in demand tomorrow, be creative and be a step ahead of the others. It is the one and the only piece of advice that can be given

    Now you are equipped with a number of tips on what to sell. You have another issue still: where to find the products you think will sell good. Dropshiparea.com can provide you with a trustworthy drop ship directory plus a number of other drop ship solutions.

    Now you are ready. And remember one last thing: never listen to other sellers, there is no ideal scheme of selling, yours can be the best, so dare and don’t be afraid of mistakes – they are inevitable, but they can teach you volumes!




    Bundle Your Products Effectively
       January 7th, 2008

    When you sell products over the Internet, one thing will naturally come with experience – it looks strange, but the customers are not eager to buy small items (I mean the items that are basically cheap). It IS strange, isn’t it. But Why? It should be vice versa, you would say. I should be…but for the Shipping charges.

    Well, you see that there are dozens of charges for the transportation and delivery of goods. Just imagine, a small silver fork the user is interested in costs $10 and the total shipping charges for its delivery reach, for instance, $5. It makes 50% the cost of the purchase. I would say it is way too much. And if we take, for example, a kitchen machine worth $100, then $5-delivery makes only 5%. Much more agreeable.

    A number of services on the Internet deal with a better scheme. I’m talking about Drop Shipping. Why is it better? Very simple. The transportation and delivery methods are the cheapest. You but the products directly from the manufacturer. Thus you avoid extra expenses with transportation and stocking of the items. If a service has a huge database of wholesale drop shippers, then your task is as simple as it can be: just go there and choose the ones you like.

    However, it is impossible to avoid shipping charges completely. You have to pay the manufacturer or the service for the delivery of the ordered items.

    As I already mentioned, when the shipping charges make half the price of the product (but it can even be equal or higher than the cost of the item), then the customers get less and less interested in the products you sell.

    So, is there any solution? There is one I can give you. Make up sets. What’s that?

    By a “set” we mean any collection M into a whole of definite, distinct objects m (which are called the “elements” of M) of our perception or of our thought.

    This definition has been given by Georg Cantor. Do you wonder how the so-called “set theory ” can help you? Let me explain.

    Let’s assume that you deal in children’s accessories. Let’s take multi-colored markers, for instance. You sell a box of markers of all the imaginable colors to your customer. The box features 100 markers.

    The customer who bought your wonderful product comes home and presents it to his/her little son Jimmy. Jimmy is extremely happy and goes round the house trying the new present on all the furniture and wallpaper. He is so happy that he screams and throws the markers all over the place. One week passes and the customer discovers that out of the 100 markers only 80 are present. Jimmy is now extremely upset that he cannot paint the walls with his favorite green and blue markers. So the customer decides to buy him these 2 markers (because the customer clearly remembers that you sell markers at retail). But what does he/she find out? That the cost of one marker is $1 and the cost of shipping is $5. Then if he/she wants two new markers it will cost $7 (when the actual price of items is $2). The customer goes crazy and refuses to buy at such a brutal price.

    What do you do? You make a set of the most frequently used 20 colors (I mean 20 markers of different colors) and bundle them together. The price of the bundle is $20 plus the shipping charge it makes $27.

    You can even give the bundle a name (i.e. “Scope-for-Imagination set” etc. to attract new customers to the product).

    The story is a simplistic one, but there derives a very important conclusion from it:

    If you deal with products that time after time need additional accessories or parts you have to make sure that buying these parts is convenient for your customers.

    In fact, almost all the products can be bundled, but there are natural bundles (i.e. surgery equipment: you cannot sell a scalpel without bandages). So, before getting down to selling something give a careful to your market strategy.

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