Page 101 - 597 Business Ideas You can Start from Home - doing what you LOVE! (Beginner Internet Marketing Series)

92 You r Idea, Inc.

If you need to have a tighter margin (#3 on the list), try to get the
buyer to order in larger quantities, saving you money on produc­
tion (remember the high quantity you produce, the better per-piece
price you will get from the manufacturer).

If you're getting stuck, try working backward. For example, say
your product needs to be in the marketplace, retailing at $50. You
can then figure you will be "wholesaling" it to retailers for around
$25 (because they will mark it up at least 100 percent). Deduct your
costs (mentioned above) from the $25 and see your profit margin.
Decide if that works for you.

Overcome Obstacles

There isn't one formula that will work for all businesses. If you
find that your wholesale cost is too high and you aren't able to com­
pete in your marketplace, you will need to reduce your production
costs, and/or other business expenses such as materials so you real­
ize a better margin. It's a give-and-take process.

When I initially sold Moisture Gloves, the price was considered
high for the product category, so we had to defend the pricing. But
we quickly found the "tipping point"-when people understood our
niche, they got it. The buyers knew consumers would be willing to
pay more for a quality product with fun prints. So don't be afraid to
go into new territory with pricing-just be prepared to justify the
price point. You can then see what the market will bear.

Qual ity Assurance

Now that you've got a product, you need to ensure that it's up to
your standards at all times, from the first to the last. That means
you'll need to act as your very own Quality Assurance department.
In the beginning, you'll likely do this job alone, because no one
else will b e as picky about the product, no one else will know the
nuances of the product, and maybe no one else is employed by the
company.