Question

Topic: Strategy

How To Add Value To Commodity Products.

Posted by Anonymous on 2/2/2010 at 5:20 PM ET 125 Points
I've determined that a section of my startup website could generate much less revenue that planned. It's all theory at this point. I posted earlier today - "Figuring sales...". As I will have a product area with shopping cart, nothing stops me from substantially adding to this area in order to counter other potential weaknesses. I can find drop-shippers to supply product -- there's no end of them.

However, we've tried so hard to be unique. Selling other people's product puts me in gen pop. Enormous competition. What merchandising methods could I implement to create uniqueness here...? I'm thinking strategic relationships with suppliers, or combining discounted product with other offers like discounts on subscription. What think?



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RESPONSES

  • Posted on 2/2/2010 at 6:26 PM Author
    So you're saying if you've got a high value business you should have no problem selling what can be found elsewhere.
  • Posted by Jay Hamilton-Roth on 2/3/2010 at 10:38 AM Accepted
    There's nothing wrong about only selling unique products, so long as you have enough customers that want what you're selling. By increasing inventory, you increase the numbers, but may have a much harder time converting visitors to customers.

    Since you're just starting out, don't try to be all things to all people. Focus on what you know best first, learn from that experience, and then slowly branch out (if that's what your marketing strategy dictates).
  • Posted on 2/3/2010 at 11:29 AM Author
    One conclusion -- if you're trying to create real wealth you'll be half way to a nursing home before you get it with an ad revenue model. You have to be able to sell substantial subscriptions or product.
  • Posted by thecynicalmarketer on 2/3/2010 at 10:02 PM Accepted
    Welcome to the 21st century.

    Type any popular commodity into "Google Shopper" and you will find more than a hundred people already on the web selling it, for very close to cost.

    You need to be able to differentiate yourself either in your offering, your service, your price, or some other criteria that your target audience will value.

    If you've heard the phrase, "its all been done before" it is referring to the web. So, stick with your custom items; no one can beat you on price, just make sure you have a product offering that is unique and that addresses both the needs of your target audience, and that connects emotionally with that audience, and do that better than anyone else does.

    Best of luck, JohnnyB.
  • Posted on 2/7/2010 at 12:01 PM Author
    I didn't find what I'm looking for.
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