Continuing our conversation about the first steps in my journey from last week, Cathy Heller and I dive into some of my favorite business topics today!
If you haven't listened to last week's episode, then what are you waiting for? Head over here and give that one a listen first (then come back and hear what else I have to say!)
As I continue my discussion with the great Cathy Heller, we touch on things like how to price your products, if you should be jumping on the influencer marketing bandwagon, and how you can sell through emails!
There's lots of good info on today's podcast; let's dive in!
First Step: How to Actually Make Money
One of the most important first steps in running a business is knowing how you can actually start making money.
Here’s the answer: You have to put aside all those thoughts that tell you you have to be the low-price leader. Walmart has already claimed that title, and they aren’t backing down, so don't compete with them for it.
The truth is, I work with a lot of people that tell me things like: “I’m only making $2 off this t-shirt.” And my question is always: “How much are you selling these t-shirts for?” The answer is usually something super low, like $14.99.
Why do people sell their products for such a low price? They're not making any money and are basically working for free. I'll say it again, don't try to compete with Walmart to be the low-price leader!
Most people don’t price their products correctly because they think people won’t buy them unless they are inexpensive. You’re worth more than that, and you shouldn’t be working for free; that’s called volunteering.
So, please, I am begging you, let go of the low-price leader mentality. Add value to your products. Turn your products into an experience for your customers. People are willing to pay more for great experiences.
Selling experiences will help you stand out from everybody else around you, and that will help create bigger margins for your business.
The Right Platform? The One You’re Comfortable With
Cathy asked what my favorite sales platform is. I’ve sold products on many different platforms, and so I thought I’d share my experience with everyone.
If you don’t know already, there are two types of platforms: Marketplace-type platforms (like Etsy, eBay, or Facebook Marketplace) and your own platform, as in your own website.
Each type comes with its own pros and cons. Lately, I’ve been feeling like marketplaces were just too risky for me, especially for small businesses. Remember when Amazon announced last year that they’d only keep essential items on their platform?
That killed a lot of businesses, and when you rely on your business to pay the bills and put food on the table, you can’t risk that happening.
This is why I personally like to have my own platform. You can do that on websites like Shopify, which is my favorite. Yes, it’s a bit pricier than other options, but it will save you sooo much in the long run.
How do you build your website on Shopify? I explain that in more detail (and discuss a bunch of other exciting business topics) in this week's episode, so make sure to tune in now!
Top Takeaways
- You don’t need to be the low-price leader.
- Add value to your products by creating an experience for your customer.
- Test products before you buy larger quantities.
- Mix physical products with digital products.
- Look for reputable brands when shopping and don’t over buy.
- Marketplaces are great places to get things going before you start your own platform.
- Influencers have a warm, trusted audience.
- Address your emails to one person.
- You’re gonna make mistakes, and that’s okay!
- Do good things with the money that you’re making.
