Written by: Staff Writer
HEY, MY name is Jordan Phillips, and I’m the founder of bmoor.
And bmoor is a social enterprise whose mission is to drive the values of ownership and self-sufficiency within the black community.
And to help achieve this, we host a FREE online workshop every week.
Which is designed to assist black entrepreneurs with their online marketing efforts. In driving more customers & profits to their business. FREE Digital Marketing Training For Black Businesses to Get Profits Online
But with that aside, in this article you are going to discover how to choose the best product to sell for your online business.
Which on reflection is quite ironic.
Because the funny thing about asking the question “what product should you sell?”
Is that you’re in fact asking the wrong question.
The question you should really ask is “what market should you sell to?”
Reading my previous article “How To Know If Your Business Idea Works Without Spending A Penny On A Website Or Marketing?“, you would know that a market is simply a collection of people that share common interests and problems. And are willing to pay money to get them resolved.
An example of this can be people with an interest in fitness, wanting a gym membership so they can stay in shape and exercise.
Another example, can be people who are big into fashion, wanting to buy clothes that keeps up with the current trends and designs.
And only in knowing the needs and desires of a selected market, can you then sell a product you know for sure someone will buy. Instead of assuming they will.
And it’s the assumption part, which marks the death of a business before it even begins.
Ok, so we’ve identified what a market is.
How do we then decide what market to pick?
Well, there happens to be a few critical things to be mindful of.
And perhaps the most critical of all is knowing ‘the size of the market’ you plan to enter.
Which is simply a question of knowing how much money a particular market generates.
And this is important for a few reasons.
The first of which, is that a big market is a strong signal that you’re entering a consumer base which is large in number and has strong demand. Coupled with the increased likelihood that there is capacity for your business to find space and grow.
Remember, if you don’t have customers, then you don’t have a business. Which is why entering into markets with an endless stream of them, is so critical to any business success.
The next thing you’re ought to consider when choosing your market. Is knowing what people are prepared to pay to get their problems and needs resolved.
As the more money customers are willing pay for the goods and services in a market. The more you’ll be able to protect your profits.
This is because, higher prices, tends to signal higher margins. Which means your prices will have more capacity to absorb marketing costs, sale rep costs (if you have any) and fulfilment costs.
All without having a negative impact on your bottom line.
And which is almost impossible with goods and services at razor thin price points and margins.
Another point to make about markets where customers routinely buy at high price points. Is that there’s more opportunity to spread high profits over a smaller volume of sales.
Which allows your business to focus on quality customers, affording you more time to build stronger relationships with them through the value you provide.
The next thing that you’re ought to consider when choosing your market, is seasonality.
Which simply means, what are the buying trends of your market across a 12-month period?
Do customers buy consistently throughout the year?
Or do they only buy at specific times in the year?
It stands to reason that you would want step into a market which has consistent demand all year round. So, that way you can have reliable profits and sales coming into your business.
Allowing it to be more shock-resistant, alongside giving you scope to plan more effectively into the future.
The final point we’re going to touch upon when deciding what market to enter. Is how frequently does the average customer make a purchase?
This point is very important.
Because profitable businesses rely on their previous customers to re-purchase from them. Which reduces the reliance of always having to win over new ones.
This act alone, multiples the return you’re able to generate from each customer you transact with.
Which helps secure long-term profits for your business, since you have a customer base you know will always come back and buy from you.
Businesses struggle when they can only get revenue from new customers, as they don’t have the customer loyalty to build off previous ones.
Which is why the value you provide upfront, needs to be strong. Since that’s the only thing that’ll give you a chance of them coming back.
For more information on marketing and business strategy you can follow us on Instagram @bmoornetwork. Or email us on [email protected]
Your email address will not be published.
The Voice Newspaper is committed to celebrating black excellence, campaigning for positive change and informing the black community on important issues. Your financial contributions are essential to protect the future of the publication as we strive to help raise the profile of the black communities across the UK. Any size donation is welcome and we thank you for your continued support.
The Voice Newspaper is committed to celebrating black excellence, campaigning for positive change and informing the black community on important issues. Your financial contributions are essential to protect the future of the publication as we strive to help raise the profile of the black communities across the UK. Any size donation is welcome and we thank you for your continued support.
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