Chapter 7: Choosing Products - More Than Meets The Eye

Chapter 7 - FREE Page 1 Preview:

CHOOSING PRODUCTS:

So now that you have a good idea of the character & lifestyle of the brand, what kind of products t with that market and your customer avatar? In this chapter we’re going to learn the following considerations for choosing a product:

1. Costs
2. Manufacturing and MOQ (AKA Minimum Order Quantity). 
3. Profit margins.
4. Storage & fulfillment requirements. 
5. Shipping logistics. 
6. Legalities, permits & licensing. 
7. Longevity of the product - meaning is it a consumable, or does 1 last a lifetime.

There are several key things to consider when deciding what products to bring to market.

 We’ll start with Cost Of Goods AKA COGS which is simply the technical term for the price you’re paying the manufacturer for your products.

How expensive will each unit be? For example, you might say to yourself “well my market is into surfing, maybe I should make surfboards? They sell for $500 or more, that’s a lot of money per unit!”

That seems totally logical, and could be a good fit, but here are some things to consider. 

Even though the retail price of a product is $500, it could cost you $400 to actually make that product, so if you sold 10 of them in a month for $5,000, you didn’t actually make $5,000, you made $1,000 because the product cost you $4,000.

Also, if the cost of goods is $400 each, that means you had to pay $4,000 up front to get those 10 surfboards made before you sold any at all to even have them in stock, so it cost you $4,000 out of pocket to make $1,000 in one month.

Total guide is 8 pages long and includes a Checklist Worksheet on Page 8.