"A Fair Price for a Product that Satisfies their Passion"
This should be the Mandate for any and all 1 or 2 person e-commerce businesses, that is, if they want to earn real income.
Here's why --
The same power and reach of the Internet that allows us to peddle our Wares to a World-Wide Audience also allows any on-line shopper to compare apples to apples.
You know the score – Ask Jeeves, My Simon, Google, all of these information conduits let even a 12 year old compare the going prices of Game Boys and Tony Hawk Skateboards faster than you can say "Brush your teeth and Go to bed!"
My Nephew told me I paid too much for my Mustang! Glaring, he told me that Cars Direct.com had a better deal.
He was right.
So, as an E-Commerce Store owner, heck, as anyone who sells anything on-line, how can you shield yourself from the nimble hands of Internet price shoppers (And my nephew)?
"It's The Product Scarlet, Nothing Else Matters"
Let's play a little game…
The Price is RIGHT!
If I asked you to tell me how much a low-priced color scanner goes for online, could you?
If you couldn't, how many My Simon Searches would it take for you to get that price?
Two?
Yep. If you spelled "Scanner" wrong on the first try.
Now, if I asked you to tell me how much a "Battle-Ready Shirt Of Chain-Mail" would cost…
How about a Replica Tiffany Lamp?
A Novelty Pool Cue?
A Life Sized Cardboard Movie Standee From Lord Of The Rings?
A Mutual Fund Investment System?
A Hello Kitty EZ-Bake Oven?
My point is, the products mentioned above have "I Want It" Value. Their price is not restricted or encumbered by a model number. They can't be easily compared in the marketplace because they are not staple products. They are "Passion Buys".
You want to learn how to invest in Mutual Funds? (So you can be Wealthy) Fine, you can choose from a Paper Back Work Book for $19.99 or a 3 Video Set for $497.00 (With 3 easy payments).
You want a Life-Sized cardboard Darth Vader to greet your house guests (So you can be Cool)? How much is that worth to the person who's license plate says "Jedi"?
NASCAR Fan? Oh wait – Are you a "Pool Shootin' NASCAR Fan?" How much is that Rusty Wallace Billiard cue with the Mother of Pearl Inlay worth (So you can…umm…)?
The answer? Whatever your willing to pay for it.
Let's face it, everything Computer, Internet, Electronic, and anything else with a Plug or a Model Number already has a manufacturer screaming it's value to the marketplace. If you sell these types of products, you're saddled with shoppers who are going to compare "Apples to Apples" and the reach of the Internet makes it easy for them to do that.
That's not to say that a shopper who is dying to get their hands on a "Battle Ready Chain Mail Shirt" will not already have done their research. They absolutely will, but because Sony has not yet released a 2003 Chain Mail Shirt Model, you can use carefully crafted product
listings to build a high perception of value for that product.
One more example.
Do you run ebay auctions?
Try this: Place 2 of the same product up for auction. Make the first ones starting bid .99 cents. Make the other ones starting bid $25 bucks
Which one is going to make more money? The one that has the most bids. Why? When people are cruising auctions, they make a very subliminal mental note of the number of bids on that particular auction. If an auction has a lot of bids, there is a perception that that product is HOT! It must have some characteristic that is drawing people to place multiple bids on it.
Guess what? An auction (for the same product) that started at .99 cents will always
have more bids on it than the auction that started at $25.00.
And in our experience (we're power sellers) our .99 cent auctions always make more money than the one with a higher starting bid.
Always.
Your success in e-commerce depends on your ability to market and sell a product that has a High perceived value to YOUR CUSTOMER, not a value that is determined by the MARKET PLACE.
Isn't it amazing how much an avid sport-fisher will spend on a lure that measures 2 inches by 3 inches? Yet, they will never buy a microwave oven unless it's on sale at Best-Buy.
Need vs. Want. That is your key to e-commerce success. We already know that the best chance for a 1 or 2 person e-commerce shop to succeed is to specialize, to stay in the niche markets. Now, take that a step further. Instead of selling a product that you think a customer needs, sell them a product that they "WANT"
Your customers buy based on emotion, and then back up their purchase decisions with logic. Yes, you should sell them something that they are crazy about, but then keep the sale alive by offering good customer service, a great guarantee, an easy way to contact you, and a fair price for a product that satisfies their passion.
"A Fair Price for a Product that Satisfies their Passion"
Shop You Soon!
Audrey Kerwood & Andy Jenkins
