Big Dollar or Small Dollar?


fudjj
Site Admin
  • Posts: 6327
  • Joined: 27 Jul 07
  • Karma:
28 Sep 17 12:50:31 am
There are multiple ways to make $100. For example, you can sell one big dollar item and make $100 profit or you can sell 100 smaller items and make $1.00 on each one. It's kind of Hair and Tortise sort of scenario, the question is, which approach best suits you?

That kind of comes down to several factors in reality, one of those factors is budget. Wholesale power will usually give you the opportunity to deal in the bigger dollar returns through your volume purchasing power.

Drop-shipping is usually more successful on the smaller margin model, but what many overlook is that these types of products include a lot of consumables and consumables have one very big advantage over large margin products.

THEY GENERATE REGULAR REPEAT SALES!

Something as small as a speciality soap can see customers returning time and time again to buy that particular soap again nd everytime they return, you have a chance of them increasing their spend on other items.

So it's not always about making the big dollar margins in this business. It's about creating an ongoing business and the lifeblood of creating ongoing business is to create a solid base of repeat customers!


Mark (fudjj)

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