Business Talk

[kman]

Shazam, back at ya

[The Virginian]

My charm, good looks and intelligence just isn't enough.

;D True this was especially difficult for me to realize also!

Marketing being one of them.

Marketing may just be the single most challenging part of business; after all if people don't know what you are offering what will make them come to you? Marketing can be expensive also and one of the key challenges I have faced is figuring out what is the most effective means of advertising - It's not cheap and if you are not reaching your target audience you might as well throw the money in the fire place.

[kman]

There are many...free and logical ways to get your company known.

Think like your customers. ..That is the most important key.

[usaone]

Feb 7, 2011 21:35:04 GMT -5 kman said:

One day apart on our bdays...and 8 years...some k for your mojo

I was born in '70 but cant figure out how to change it!

[kman]

sun, what would your customers type in to search for your services on line?

[vl]

Thanks to you as well VL.

Don't you have a web site based business? I would like to hear your thoughts on it.

Read more: notmsnmoney.proboards.com/index.cgi?board=moneytalk&action=display&thread=784#ixzz1DT25UrIO

More than one. Each uses a tailored component to make it unique. For anyone looking to start up e-commerce, the concept is entirely different than a brick and mortar storefront.
For instance... you don't need a marquis or fancy website, you need optimization. That said... you don't need to be a nuisance, you need to be the one site that aligns with the keywords a prospective shopper is using. That gets them to you. The more important aspect is to have what they seek positioned, constructed or presented in a format that eliminates apprehension due to missing, lacking or suspect information. The more "template-looking" you get, the fewer your sales will be because the average global consumer opposes organized business today. In short, I can have EXACTLY what Target, Kohl's and Wal-Mart has. If I can get the prospect to my site- at all-- I will win the sale by sheer presentation.

Let's say the product was a widget. The brand would be the optimized aspect. Seekers would use the brand as a keyword. The optimization order using just the brand would be: E-Bay, the brand's own site, each big box retailer and/or optimization pirates who use keywords that are unrelated to their product to get you to their site, where you are bombarded with banner ads and forced-entry ads. To avoid these, experienced seekers key in more than the brand. Those subsequent words are the optimization I employ. Once a prospect gets to my site, my widget is photogenic and pleasant with a short and specific description that addresses apprehension or the factors that reduce unknown variables to being worth the risk to purchase.
A widget viewed more than 5 times is no longer a product, it's a benchmark shoppers are using to buy somebody else's widget. There is a hurdle that needs addressing (price, photo, etc). It becomes my job to be a prospect and back into the process to find the hurdle.
The idea of buying online has evolved. No one trusts Big and Organized any longer, so being the alternative requires sharper thinking. I do not strive to mimic Big-Anything, I focus solely on having what seekers want and reducing apprehension before purchase.

This is-- Market Talk. My original margins were dismal, my consistency was weak and I actually lost money on some transactions. Today, a 4-to-1 return on investment would be on the low end. The median is closer to 16 to 1 these days. Overhead is far below brick and mortar and I can roughly forecast my months as well as floorplan for cyclicality. Last year (2010), I sold off 50% of my standard-flowing inventory while hedging the other 50% because supply waned in competitor outlets. I was-- right on-- and am now marketing that supply at a much higher margin.

If you thought e-commerce was for ham-and-eggers on E-Bay, adjust your thinking. I actually buy supply off bad business brokers when they become asset-rich, cash-poor and resell it in the same venue they failed in (for my stated margins). The future contains TWO important things... a knowledge of goods and the price people will pay versus cost... AND... presentation without misrepresentation to ensure a quality reputation.

[The Virginian]

Thanks VL,

I have two Web Stores I would like you to look at if you wouldn't mind giving me a few pointers on what I might be doing wrong. So far I have had very little response to either site. Both have been up since Summer 2010. I'm not sure I am allowed to post them here but I could PM you with the URL's if you are willing to look at them for me.

[vl]

One of the biggest aspects of e-commerce is-- optimization or where does your website appear in the Search List?
Almost all keywords default to-- E-Bay. Likely, big online BIGS like E-Bay have software that pumps the keyword to make them appear first, no matter what you are searching. Usually, there are several other BIGS that follow. Your site ends up on page 56,678.
The trick is to NOT rely on optimization, but the optimization of others and your ability to be relevant within those BIGS. Any smart shopper with online savvy will use a BIG as a benchmark and go for savings. Therefore, unless you price everything for $1 and ship free, you aren't going to beat the power of lop-sided trade and currency conducted by the Chinese.
If you input the keywords: gem tester, you would get E-Bay and other e-retailers. Shopping solely on E-Bay, the price range for a new gem tester will range from $250 down to-- $2. If you go to "completed items" you will note that not all gem testers sold for $2. Some were sold for more, but all the $2 models ship from Hong Kong. If someone had 100 gem testers shipped at once from China, the per-unit cost yields negative profit for China and a viable margin return for the American who re-markets them.

THIS is what optimization cannot do... it cannot steer you to the source with the best photo, best description and answers to common concerns that ease animosity and promote impulse decisions or confidence. The attributes that actually matter are fully voluntary for the buyer. Understanding these and leading them to you by passive receptivity is worth its weight in sales.

E-Commerce is likely here to stay but GIANT businesses ruling the marketplace is not. Within 10 years, I see no more malls and less brand value. The competitive edge will likely be narrowed to reliability, quality and connectivity with the shopper. That will eliminate BIG in favor of boutique.
Having what they want is good, being where they want to go without apprehension is incredible. Think it through.

[The Virginian]

E-Commerce is likely here to stay but GIANT businesses ruling the marketplace is not. Within 10 years, I see no more malls and less brand value. The competitive edge will likely be narrowed to reliability, quality and connectivity with the shopper. That will eliminate BIG in favor of boutique.

I agree that's why I am trying so hard to break into this market!

[Deleted]

Virginian, I hope this thread doesn't wither away. I'll post when i visit this site.

It's possible to leverage Ebay. With a few well-placed, legitimate listings - or even a small store, you can post a link to your real on-line storefront.

[Deleted]

To earn real $ on Ebay as a seller is tough - the fees add up quickly, and it is very difficult if you are going against others who have established sales (or low margins), or those across the globe who sell dirt cheap.

It's a great place to sell odd & broken merchandise.

[Deleted]

I did a stretch where i sold Thor-Lo socks. I bought cases of old stock @ about $1/pair - running, walking, golf, etc. - they sell for $10 retail.

So that was a sweet ride selling those on Ebay - socks don't break, they had known retail packaging, i'd do that again.

Conversely, i had an independent bicycle shop go dark at 1 of my managed commercial props - they took the good stuff, but left a lot of valuable parts - but you had to know what all that crap was. I finally got another store owner to buy it all for about $1,100 - I'm convinced it was worth over $10k, but no one showed at an auction, and i didn't care to learn about bike parts.

[The Virginian]

It's possible to leverage Ebay. With a few well-placed, legitimate listings - or even a small store, you can post a link to your real on-line storefront.

This was Veteran Lenders Advice also - The Internet is as tough as any place to do business. Lot's of competition - but I'm convinced the Internet is going to destroy the Brick and Mortar stores in the future!

[The Virginian]

up 41% YOY for the Month of February and we are up 7% for the year now! Let's hope this trend continues!

Feb 2011 - We finished Flat for Feb in YOY Sales.

We are down 1% in Gross sales YOY

So far in March we are up + 8% for the month.

[The Virginian]

It is an art to be able to look at your numbers and project where you are going to be in two, four, six twelve months to project what and when to buy inventory, equipment, etc. I did it for about 25 years.

It's very difficult indeed, especially in this economy. For instance, right now I just submitted our Halloween orders for this October. Most people don't even realize how far in advance we have to plan for and make decisions on how much to invest into inventory. Too little and you run out too early, lose sales, and customers get frustrated with you; too much and you are stuck with inventory you can't sell and your cash flow is destroyed which makes it hard to pay bills.

[The Virginian]

It looks like March will be a bad month for us in sales. Unless a miracle happens we will finish the month down.

I'll try and post the monthly figures tomorrow!

[The Virginian]

"They" are back - Knew they would be

[usaone]

Feb 7, 2011 20:02:14 GMT -5 kman said:

Indeed, you do learn some things about yourself. I already knew what my shortcomings were..at least to me. I was surprised at some some things that I excel at. Marketing being one of them.

A bad day of working for myself...is better than a great day of working for someone else.

K for the Kman..........nothing beats working for yourself!

[usaone]

Double post and double K for Kman. ;D Oh well!

[The Virginian]

OK,

March was not good.

Down 6% for month & now down 4% for Year - YOY

[The Virginian]

April - Mid Month Report:

April - Down 23% from Last Year

Year - Down 7% from Last Year

Hope things are improving but looks like High Gas Prices are starting to take their toll on Retail Sales again.

[The Virginian]

We placed an Ad for a $9.00 per hour job on Craigslist Late Saturday afternoon. As of this morning we have had over 30 responses to the Ad.

Are things really improving?

I'm starting to have my doubts again. Our sales are declining again and with this many responses to a $9 per hour job what exactly is going on?

[rileyoday]

My wife has operated a cross stich supply, frame shop for 22 years in the largest city in WV. Her gross is down 50 % from 2006.

She can only stay open as her building is paid for and the commute is short. A further decline she will close and stay home.

[The Virginian]

We finished April down - 10% YOY. Not looking good for us.

We have decided to add Beer, Wine and Snacks to our Inventory. We are applying for a license in a few days. Maybe this will give us enough sales to carry us through these ruff times. Not going to give up without a fight!

[The Virginian]

$320 per year for Beer License! - What a racket!

[The Virginian]

We are a Party Goods Store. We also sell Costumes, Wigs, and other theatrical accessories.

[The Virginian]

May 24, 2011

TO: All KAMA Customers FR: Mike Michaud

RE: Product Availability Notice

We’ve had a major reversal of fortune that I, again, want to share because so many accounts are sending orders that we cannot ship for:

Halloween Luminarias: Our one US supplier stopped making fire retardant paper last year, so we are out of black, orange, and white luminarias. We could get fire retardant paper from China, but we will not do for a variety of reasons, and so we are out of the Halloween luminaria business [for now].

White Snowflake Luminarias: We have no white snowflakes other than a few in bulk.

Black, Orange, and White Everyday Luminarias: We have a few white heart & candle sets packaged, and various small quantities of most styles normally available in bulk, but are otherwise out of all black, orange, and white items.

Ghoul Drool & Glow Snow: We are sold out. With the ridiculously high cost to make new product we have decided to discontinue the items – they are not $8.99 products.

Pumpkin Cutters & Scoops: We discontinued these items of a lack of response last year and the year before. We will refer orders to the manufacturer, or please contact them directly: The Pumpkin Kutter Company – Don and Bonni – 605-341-3220.

So, what does KAMA sell? For now we have American flags (made in the USA), Candles of Doom, Pumpkin paint & stencil sets, Christmas luminarias (candle & holly, Christmas tree, Christmas bells, stars) and everyday luminarias (graduation, cancer awareness, luau, stars, over-the-hill, Star of David).

As we can we will add items. However we’ve taken pride over the years in selling only products we make or source in the USA, and believe that’s the right course. It isn’t easy, but from our perspective it is absurd to send money and jobs to China.Please note that all of the items referenced above as being unavailable have been removed for some time from our price lists.

Thank you for your business over the years,

Mike

Is this a great American Company or what?

[The Virginian]

Looks like May will be another down month for us. - Trying to adjust our business model to bring up sales but it is a slow process and a lot of guessing -

[The Virginian]

Consumer spending rose 0.4 percent, reflecting a surge in the category that covers food and gasoline, areas which showed big price gains last month. Excluding price changes, spending rose a much smaller 0.1 percent. Incomes rose 0.4 percent but after-tax incomes adjusted for inflation were flat for a second straight month.

Analysts are worried that weak income growth and big gains in gasoline and food prices are leaving consumers with little left to spend on other products. That could dampen economic growth. Consumer spending is closely watched because it accounts for 70 percent of economic activity.

Goes along with our sales - We don't sell food or Gas - Sales have been declining.

[The Virginian]

Or maybe everyone is just out buying up all the Gold & Siver?