Retail Margins: What should you charge?

The product you buy is not the product you sell

Question: If you buy a product at cost or wholesale price from a manufacturer or wholesaler, what percentage should you put on it before you sell it at retail?

buyer-seller-box

Answer: The definition of business I find most useful is this:

“Business is the exchange of resources for mutual perceived benefit.”

In other words, by definition it has to be Win-Win to work.

For the buyer, it’s an EXPERIENCE — not just the BENEFITS they enjoy, but how they FEEL about those benefits (or absence of benefit). THAT’s what drives them onto Social Networks, Review sites, friends’ phones, etc, to either rave about you and your product/service, or to rant about you.

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Tricky Marketing Question

And a not-so-tricky answer!

I wrote this article as a reply to a forum member who wanted to know what kind of marketing campaign would work best for his established tree surgery business.

There’s an old saying that goes like this: “doing business without advertising is like winking at pretty girls in the dark… you may know what you’re doing, but nobody else does!”

I’ll go one better: “Advertising may be like winking at pretty girls in daylight, but without an effective marketing strategy to power and direct them, most of those winks will be wasted on all the wrong people, and most of the right people either won’t be looking at you when you wink or they won’t be interested!”

You need to identify your ideal customer. They’ll probably have several qualifying characteristics, such as…

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“If you always do what you’ve always done…”

You won’t always get what you’ve always got… you’ll get progressively LESS! guarantees that your results will dwindle exponentially. The harder you try, the faster the results will diminish. (Hover your cursor over the blue text in the first line for an explanation.) The Law of Diminishing Returns is an economic law, not necessarily a scientific law … Read more…

Beware the new “Carpet Baggers”…

Beware of “Gurus” and other Carpetbaggers!

"Guru", wannabe-clone and gullible, unsuspecting suckerIf you haven’t been approached by any of them yet, then your business must be totally invisible on-line. Many of these “specialists” and “experts” use software to ferret out the details of every local business listed in search engines and on-line directories, then email local business owners with the bad news about how poorly their sites are performing (especially compared to their competitors), and how these “specialists” or “experts” can save them from sinking even further, etc, etc, etc.

As odd as it may sound, that may not be such a bad thing — especially if you haven’t shelled out any money yet for the often-exhorbitant fees they demand for the very limited benefits they offer.

But how do you know?

And how do you know you’re not being taken for a ride by some modern-day “carpetbagger” who bought a get-rich-quick ebook or an over-hyped home study course promising them overnight riches for little or no work? A “wannabe” who sees you as Pinocchio?

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Why can so few people SELL?

Why can so few people SELL?

They’re too busy pretending that they’re anything BUT sellers! hey don’t want to be seen as deceptive, pushy or manipulative… so they pretend to be “marketers”, “referrers”, “customer service advisors” or any other title that sounds more palatable — or less offensive — than SELLING. The problem is, few of them have any real clue about what marketing really is. What … Read more…

Bob Hoffman on The Golden Age of Bullsh*t

Social Media Marketing? 
A timely dose of reality…

Bob Hoffman (legendary advertising strategist and copywriter) launches a blistering attack on the failed predictions of advertising “experts” over the past decade, with particular focus on the social media marketing of brands. This was the ITV Spotlight Lecture at Advertising Week Europe 2014, 25-27 March 2014.

Snapshot: “What social media sites are rapidly becoming is just one more channel for traditional, paid advertising!”

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Coming soon: SendSmarter SoMoLo Marketing System

Exclusive to Australian Small Businesses: our integrated, affordable online/mobile promotion system for customer acquisition and loyalty! ommunicating with your customers — and prospective customers — has become easier, cheaper and faster since the arrival of Social networks, Mobile devices and Location-based geo-targeting… but it’s never been more complicated or time-consuming, either! Our new SendSmarter SoMoLo Marketing System has been … Read more…