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Later we will talk about product serialization. That is, each product is split into 4-6 products: Inexpensive ($17) or free "freeline" product. Followed up by a more substantial downloadable product (say, $47). Then a physical product in $97 range -- could be a DVD and workbook. Then move up to personal consulting $297 for, say, 3 x 1-hour sessions and email support, and finally, 2-day seminars $1497.
Internet Marketing -
Importance of Massive Action
A lot of people ask me if it's better to sell physical products online or stick with digital. The honest answer is, there is no such thing as better. Each one is going to have its pros and cons. What it comes down to, after examining these pros and cons, is what is better for you. In this article, I'm going to briefly cover the pros and cons of selling digital and physical products online. Hopefully, after reading this, you will be able to make an informed decision on which way you want to go.
Let's start with physical products. With a physical product, such as a CD or DVD or even a hard cover book, the one great benefit of selling this type of product is that people love things that they can actually hold in their hands. They get a feeling of real value when they purchase a physical product. So you'll probably have an easier time, in some cases, of making a sale with a physical product.
Selling a physical product also will, in many cases, cut down on refunds. For most people, it's a real hassle to have to send back a product. So unless there is something really wrong with it, they're not going to take the time to do this.
The problems with selling physical products, however, are many. The biggest problem is the shipping cost. In some parts of the world, assuming that you're not limiting your sales to just the United States, or wherever you're living, can be quite high. Plus, there is the hassle of having to ship the items to begin with. If you're doing a large volume, this can be numerous trips to the post office or UPS. Certainly there is more work involved with selling physical products, such as packing and shipping.
One other thing about physical products. Because the cost of making a physical product is greater, you either have to charge more for it or accept a smaller profit margin. This is another drawback to selling physical products.
With digital products, there is no shipping. Download is immediate and you can make a ton of sales in a short period of time and literally do no physical work at all. Plus, many customers like the ability to get a product right away instead of having to wait for it to come in the mail.
However, with digital products, as easy as it is to get them, it is just as easy to return them. The refund rates for digital products are much higher than for physical products.
So, as you can see, there is no perfect world. Physical and digital products both have their good and bad. What it comes down to is your preference. At least now you can make an informed decision.
To YOUR Success,
Steven Wagenheim
Tired of busting your behind for peanuts online? Go to my web site and find out how I earn a monthly income that exceeds 5 figures and how I can help YOU do the same. Get your free report at http://www.mysecretarticles.com/report.html
Article Source: http://EzineArticles.com/?expert=Steven_Wagenheim
Optimize Physical Products Selling Online
Even though digital products are easy to download, easy to store without need for extra inventory, and easy to ship to customers, selling physical products can be equally successful. Sure, selling physical products have its own challenges, but the demand is always there for physical products. There's a myriad of products you can sell, and many ways of selling them as well.
To get ideas on what products to sell, you don't have to go very far. In your city or town, go out and make a list of the top retail centers or malls there. Schedule your time, and make a point to visit these stores within the next couple of days. You will be amazed at the seemingly limitless varieties and categories of goods found there! Go to Walmart, and you can see the many categories from clothes, to furniture, to toys, and utensils. Go to Electric City and be wowed by the many brands of electronics there, and the various gadgets available for purchase. Go to a Mall and you can see atrium of stores there selling stuffs from antiques, collectors' items, brand name clothes and shoes, handbags, bookstores. You are spoilt for choice when it comes to selecting a physical product to sell!
The first thing to do in a marketing strategy is to analyze and select a category to compete in; e.g., you may want to sell toys online, and you need to understand the category basics, competitors, fads and trends, good selling brands. You also need to understand thoroughly the mindset of purchasers of toys, who are mainly adults. Then you need to look into the logistics of the process, such as how much storage space you need, where can you store the goods, and whether drop ship services are available.
For storage, you need to setup a proper system for inventory of goods. You can set up product codes and bar codes for easy pick up and storage of items in an organized way. Also, check on the needs of storage, such as bulky toys, which may need extra spaces, or clay toys, which may need to be stored in a room cooled to below room temperature. For fragile toys, you may need special packaging such as bubble wraps, polystyrene wraps to protect the toys from knocks during shipment. Then, you will need to liaise with a shipment company for optimized shipment costs.
In conclusion, do consider physical products as potential items to sell on the internet. You can specialize on certain items like toys for kids from 3 to 8 years old only, or offer as many products as you can in your category. It's your call. Experiment with your selling items, prices and targeted customers, and you will definitely find the right combination of strategies for your success online.
Gab Chu is an experienced marketer in the consumer goods industry, with 9 years of experience marketing to end consumers and businesses, and researching on consumer psychology. He has worked for global brand name companies who are leaders in their categories. To download your FREE report on "The Secrets of Online Success", simply visit http://www.loveformarketing.com/imsuccess/ today.
Article Source: http://EzineArticles.com/?expert=Gab_L_Chu
The Take-Away:
Nothing happens before you take action.
People who plan without action are just DREAMERS ... many wonderful goals but no way of getting there..
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