Pricing Question & Need a Loan!

I'm going to be selling a GLBT themed product through the mail, but it's something I can't create in huge quanitity right away. How should I go about pricing things so that people don't scoff at the high price, but so that I can ensure a small volumn of daily sales? It's a fine line, and I don't want to cross into extremely over-priced. Since this is pretty much a new market, I can't really price based on competition.

Also, what happens if the product is so popular that I can't possibly keep up with sales? I'm imagining a back-order charge-back fee nightmare scenario i'd rather avoid. Should I hold off until I can make a large quantity to begin with, or stick with my idea of made-as-ordered? I have no capital so it's almost not possible to make a lot to begin with, or "hire" friends to help fill orders.

If ANYONE is willing to invest the $600 I need to start this thing up, I would sign a contract to pay them back $100 a month for 10 months. I know for a fact it would be worth it to me so i'm willing to do about anything to get together the money! If anyone has any other ideas on how to go about raising this kind of cash, let me know!

DJ,

Did you ever find a NDA agreement?

Your going to need it if you are looking for people to loan you money for this project as they will want to know what it is.. i know im curious as all hell ;)

Regards,

Lee

Now to answer this part of your question..

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Also, what happens if the product is so popular that I can't possibly keep up with sales? I'm imagining a back-order charge-back fee nightmare scenario i'd rather avoid. Should I hold off until I can make a large quantity to begin with, or stick with my idea of made-as-ordered? I have no capital so it's almost not possible to make a lot to begin with, or "hire" friends to help fill orders.

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Well if your product does become as popular as you think it might you have several options available to you..

1) Have it clearly stated on the site where your customers would be buying these 'products' from that there is a 3-6 week delivery time, this is actually pretty common practice and for the most part, if you have a lot of orders you can ensure that you also have the funds available to manufacture the product in bulk in order to fulfill your customers purchases.

2) Depending on what the 'product' is you could offer some kind of 'franchise' deal with certain companies to allow them the distribution rights to your product too. This way you will make a percentage of the total product cost whilst for the most part, the risk lies with them.

3) If your product is something that is readily available (i.e something you dont have to make from scratch but is already in existence without your marketing angle) you could try to find a 'drop shipper' to fulfill the delivery of the products.

Hope this helps and as i mentioned above im curious to hear more about this idea so if you have a NDA available or need one lmk and ill gladly sign one just to find out what this idea is :)

Regards,

Lee

jay get me an NDA and lets chat

if you cant find one let me know.
ive got one around here somewhere.

Me first Dale LOL

Regards,

Lee

Since I have no clue what this is ... is it possibly something you could test market on a site like Ebay? that way you're only selling one (or you can say 10 available, etc) and can play with the price?

Lee, i'm so paranoid though I don't even know if that would be enough to get me to "spill the beans" to anyone without at least getting my foot in door, so maybe I am doomed to go it alone? lol. I would be completely devestated if even one of my ideas showed up from another company before I got a shot at it, and it's obvious from my posts that I would never be able to afford a lawyer even if they did.

I do have a fairly detailed "business plan" that dosn't exactly give it away though. Right now I have about 20 different "models" of my product that cater to almost everybody GLBT, from bears to female impersonators. I will be marketing to people who have hardly anything out there that is made just for them, this in itself should give me a definate edge. It ranges from high-end elegant and tasteful, to slightly tongue-in-cheek gift, without going adult at all.

Every item I create will be gift boxed and shipped descretely, I would think the high price/low production cost would keep me out of the red from day one without it hurting quality at all; this is truely a once in a lifetime opportunity for me so i'm sure you can see why my lips are superglued.

Your response is very very helpful and has helped me think of things i'd never even considered before, so THANKS! I think franchise is out of the question unless I end up with a really good name for myself, because its a product other companies could probably copy themselves for cheaper than my whole sale prices would be. I'm all about making a name for myself and having name recognition among GLBT's first thing.


Bec:

There is a somewhat similar but not even close to as great or appealing as mine product that is listed on ebay most of the time, and it always get bids, and sells at prices I wouldn't even dare to charge. But yes; I plan to test market it on ebay and eventually use the ebay auctions to sell "last of stock" items when I stop producing them for good in favor of new and better selling models, and to direct traffic to the site.

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Originally posted by DigitalJay
I would be completely devestated if even one of my ideas showed up from another company before I got a shot at it, and it's obvious from my posts that I would never be able to afford a lawyer even if they did.

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But that is what the NDA is for babe :)

As far as the layer issue, you would probably be able to find a lawyer to work on a no-win no-fee basis having shown them a signed copy of the NDA ;)

Regards,

Lee

By the way; I've been making this item for a while now, and I know from the sincere reaction of people i've given them to as gifts that they would be very popular. Also, they wear out over time and heavy use, so I know there would be repeat customers, for personal use and to buy them as gifts. There is little chance for them to be damaged during shipping, and since every model will look exactly as it is pictured and have a detailed description, charge backs and returns should be minimal. There isn't much chance of "this dosn't do what I thought it would do!" and "this isn't how I thought it would be!" situations occuring often. Each product can also contain a link to the website and the name of my business, for word of mouth advertising at its best!

While i'm boasting about how great my ideas are, I have to mention;

I will have products made just for post-op transgender men and women! Surely that will make me some kind of pioneer?

I will also have items that will proceed AIDS research, AIDS hospice programs, and breast cancer research. I'm definately not in this for personal benefit only, I want to be able to make a difference in the world, without putting more money into greedy corporate pockets.

Man, i'm dying to know now! LOL
Good luck :)

OK let me put on my VP/CFO cap on for a second. I can understand your reluctance of disclosing your business plan, however if you want to get investors for this project. You will need to spill the beans as you had put it. A non-disclosure agreement between the two parties is the only way you will get the monies your looking for.


I agree with Lee. We are extremely interested in seeing what you have to offer. So lets us know your decision.


CA

sounds like something made of latex... ;)

how are you going to sell them if you fear being copied ??

the first day they are up and out - they could be copied
and have direct competition in less than 48 hours...

maybe...

maybe the earlier you photograph them and write a detailed
description of them... and postal mail that to yourself
and do NOT open the envelope - tuck it away with the postal mark
clearly visible - in case you need proof of it being your idea
way back when...

once you are ready to market whatever it is... if you make yourself
a little button I'll put it up here and there with your link to
get you a smidge of traffic to help you out... just let me know
when you want me to do that...

I don't have the spare $600 to help you out... if I did I'd be
using that to get myself to the Florida Internext in Aug. 13-15...
as it stands now I won't be able to swing $$ it - - - unless
some sponsor or company out there either has a contest or promotion
for the air fare, hotel and convention admission... or if a
company or sponsor needs help in exchange for the package mentioned
above... if I had the extra $600 though - I would help you out
DigitalJay... your enthusiasm for your idea makes me smile...
I am sure you will do well...


~Bell

i was already wondering what bell was wondering - if you're that afraid of someone copying them, how can you sell them? how do you keep your friends from showing them to anyone or telling ANYONE?

hehehe, it isn't anything super top secret never before seen on earth developed in an underground lab with new technology and space age materials found in a meteor that crashed in my yard - or anything like that. Don't I wish.

In fact, most of you would probably groan and go "aww, is that all?" if you knew what I want to sell. Or at least "Eh...good luck with that..." Really this is something that is already out there, in every home i've ever been in, in fact. It just happens to be something I really like making in a really gay way, so I wanna see if other people in the GLBT community like it too.

My main thing is that I don't even have a digital camera right now to have pics of the different models to show to anyone I tell about them, so telling just yet would be jumping the gun, I don't even have the website done or the domain name(s) registered, etc. That's what I mean about getting my foot in the door first.

I totally understand though about you all saying nobody would invest in something they couldn't see, so i'll just work on getting a digital camera or borrowing one and go from there.

Lee; are you ever on ICQ? If so lets chat; I have you on my list but i have never seen you online yet.

Ok, the website is done now, and it looks damn good if I may say so. I also now have a detailed list of needed supplies and total costs, pricing, where to promote, etc. Everything is in place except cc processing/the order form and the money I need to actually buy the supplies lol. Getting closer, can't wait to show it off!

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Originally posted by DigitalJay
Ok, the website is done now, and it looks damn good if I may say so. I also now have a detailed list of needed supplies and total costs, pricing, where to promote, etc. Everything is in place except cc processing/the order form and the money I need to actually buy the supplies lol. Getting closer, can't wait to show it off!

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who are you going to use for your billing processor and
shopping cart ??

~Bell

Thats a GOOD question, i'm still trying to figure out the answer myself. It depends on if I can afford my own merchant account or not. I got some responses to a question asking who I should use, and they all had good features that are making it a though decision. I'll probably use a free or cheap cart script though.

Yikes! Now i'm up to 38 different hand-made products i'll be selling, and I love them all! It's going to be fun to teach friends how to help me put them together without fucking them up!