Sell Something: How and What?

Once you, in your mind, have decided why you want to become a self-employee and how to sell your potential products, it’s time for me to explain you everything you need to know about the choice of the product you want to sell.

Goal when you sell something.

Keep always something in your mind: the goal right now is to make money. We are not talking about being a blogger, something you can do when or if you have time, but about your business, a full-time activity you use to earn money first to survive, then to buy the third Yacht. Which means you have to sell your products on a price that allows you to cover your costs, to earn money and to be competitive on the market. If the product doesn’t fulfil only one of those conditions, better choose something else, because it’s not worthy the effort you will put in the future.

Expensive Good are the key for a good sell?

You might think to sell expensive products. In your mind you have all these very companies, selling very expensive products. But don’t do this mistake. Any company want to sell their product to a high price. High prices are not good for business. The goal is to make the product buyable by many people as possible. The reason they sell to an high price is because the purchase price or the costs are already high. Then, on that price, companies add all the costs and the profit they want to make. In this way they have the selling price, the price you see in shops. If Apple sells iPhone on that price is because the costs for the material and for the development and production of the new iPhone are incredibly high. Since you have not controlled of the purchase price, you can work much more intensively on your costs.

Cost management

In the previous post i said that you can theoretically sell everything. In truth you can sell everything allows you to make some profit. How to make some profit? Well, keeping your costs as low as possible and taking a look of the other selling prices on the market.

Keeping your costs as low as possible, with a selling price like the competitors, allows you to have two different strategies: offering the product on a cheaper price or making a bigger profit than the competition. You can either become super competitive or earning lot of money in the short term. It’s up to you to decide what strategy you want to follow. However, you need to keep in mind that you have two kind of costs.

Fixed and variable costs when you sell something

The fixes costs are the cost you have every single months. It doesn’t matter if you sell a lot or not, you wii have those costs. This costs are the cost that you have to cover with your sales volume. If you can’t the risk to see your creature fails is very high.
Then you have the variable costs. Those costs are not there all the time. It may happen that for the purchase of some good you have to pay something more. It doesn’t happen every months, but you have to pay them when you have to. This costs are important, but they are not so crucial for the survival of your company.

The bigger the company and the higher the sale volume, the higher will be your fixed costs. Those costs will define your selling price in the end. It’s almost impossible to keep your fixes costs very low, unless you want to remain small and money are not so important. In this case you can keep your costs low. Otherwise, the more you grow, the higher the costs.

The Problem of Selling!

Which products are the best to sell? Better said, which product allows me to have the lowest costs and the biggest profit? My answer is none. I know, it sounds very bad, but let me explain. All the products are already sold by several sellers. Those sellers try every time to set the price as low as possible, sometimes very low. If one of the companies involved do that, the other follow, because they don’t want to lose their customers. Then, another company set a lower price than before and the other companies follow. And this little game goes on and on until the price are so low that the companies involved can make a very little profit. The newcomers, like you, come into the market in this moments. For them is almost impossible to try anything different, without taking the risk to go bankrupt very fast, very soon.

However, i would love to tell you something about keeping the price low. It’s like China. It’s true that low price are good, but it also means always poor quality and poor services. For the costumer, on the other side, is very important to have high quality and perfect service to the lowest price. And for you the “lowest price” is already very expensive, because quality and services are costs…costs that will make your selling price higher, but you can’t make you price higher, because you will not be competitive. The more you offer, the higher the price, but lower the opportunity to sell your products.

Solution?

But nothing is lost. You can still do something. How?

Either find something anyone has already sold. In a world where everything is already offered is very hard maybe still possible. Or keep your cost as low as possible, to make sure to have some profit to re-invest in the marketing. In this way customers come to you with the desperate need to buy what you sell. You can do nothing more than that. Or you can sell some services, like being a consultant or an advisor. Even if you have no cost, or at least way much less than selling products, you will have a competition that have pushed the price so low that you must work very long and have so much customers just to survive. I am not saying that it’s impossible to do it. but it’s very hard!

Conclusion.

One thing is for sure: no matter what you sell, you will not earn anything relevant until you don’t work a lot…or you are absolutely lucky! Before to start everything, better thing twice!

See ya

Mauro

The Ironically All-Rounder
I'm pretty sure to know everything. If thre's nothing i don't know. be free to tell me!

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