I posted in r/entrepreneur but didn’t get any notice. Hoping someone here can give me some advice.
So I’ve to created an MVP product in my industry as a learning experience - a trial in everything I know nothing about. Marketing, ads, sales, etc.
I know my industry very well but I’ve not had to wear many hats, so to speak. I’d love to get some advice m
What should I be doing to get this product noticed?
A few considerations:
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My industry is low margin so I don’t want to throw a ton of money at it as it will likely be slow return. I’m thinking maybe $2000 and seeing what that returns. I chose this sum as its a trial project and learning experience. However, I can increase if value is shown.
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My industry is dominated by amazon so listing the product there is enough for this trial (and my focus for kickstarting this project). Potential for other lower return areas in the future but would take some man hours to get going.
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The product is on its own; just like a fresh company would be doing. It’s the first product to hit the shelves.
Where am I now?
- The product is created, shipped, and ready to list.
- Profit is low at around $3.20/unit
- Category sales are low. I’ll be happy with 50-100 units a month, though research shows could be up to 250 units by similar competitors.
So what do I do now?
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I’m talking to a marketing person. I expect $1000 cost but I don’t really know what to expect from that.
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I’m researching ads. Using industry rates, I hear $300 a month (separate budget to 2k mentioned above) is good for new product and to increase once key words are determined. I expect 3 months then adjust budget according to results.
What else can I do? I have about $1000 budget room left for this learning experience.
I’m keen to get insights 🙏 Thanks!
It’s great that you’re taking on the challenge of creating an MVP and diving into various aspects of your business. We are sailing the same boat as I also have a product (digital magazine) that I have just published and I am also following the following steps.
- Optimize Your Amazon Listing:
• Ensure your product listing is optimized for Amazon’s search algorithm. Use relevant keywords in your product title, bullet points, and product description.
• Invest in professional product photography. High-quality images can significantly improve your conversion rates.
• Encourage customers to leave reviews through follow-up emails and excellent customer service.
- Social Media Presence:
• Create social media profiles for your product and share engaging content. This could include behind-the-scenes looks, product tutorials, or customer testimonials.
• Consider running targeted Facebook or Instagram ads. These platforms allow you to reach specific demographics, increasing the chances of reaching potential customers.
- Content Marketing:
• Start a blog or create content related to your product. This could be how-to guides, industry news, or anything else that adds value to your potential customers.
• Share this content on social media and use it to drive traffic to your Amazon listing.
- Influencer Marketing:
• Identify influencers in your niche who might be interested in your product. You can send them free samples in exchange for a review or a mention on their social media channels.
- Networking:
• Connect with others in your industry. Attend relevant events, join forums, and engage with online communities. Networking can lead to valuable partnerships and collaborations.
- Referral Program:
• Implement a referral program to encourage your existing customers to refer their friends. Offer discounts or other incentives for successful referrals.
- Email Marketing:
• Build an email list of potential customers. Offer a discount or other incentives in exchange for their email address.
• Send out regular newsletters with updates, promotions, and valuable content.
- Monitor and Adjust:
• Regularly track the performance of your marketing efforts. Use analytics tools to understand what’s working and what’s not.
• Be ready to adjust your strategy based on the data you collect.
Remember, the success of your MVP is not just about immediate sales but also about learning what works and what doesn’t. Be adaptable, and don’t be afraid to pivot your strategy based on the insights you gain from your initial efforts. Good luck with your MVP!
$3 in what I’m assuming is actually gross profit and not net profit doesn’t sound good on Amazon. You need much higher margins.
Yeah thats fair. It’s my industry sadly 🤷♂️ not expecting big bucks off of this. Just a mvp to learn. It’s around 63% margin and it’s net.
My actual business has higher returns but is currently a service based model. Once I learn from this I can easily jack up the profit line, it just requires a lot more logistics and scaling. I’ll do it eventually but starting small for this first one.
How can you say that it is net when you don’t know what the marketing cost will be yet? That was kind of my point in saying it’s likely gross profit (operating profit).
It is good that you’re starting small though and just be ready to make essentially no profit and this be a learning experience to improve upon, which it sounds like you’re prepared for.
Oh right. Fair point. Sorry, this is why I’m doing the trial.
It’s the net based on production, storage, and distribution.
Yeah I dunno if I’m being silly here. A lot of the feedback has me questioning if I’m wasting my time with this project.
I’m really just hoping to learn from the experience. I don’t have free time to explore all of this myself and a lot of what I hope to learn will be valuable in scaling my other business in the future.
And doing training courses will take time plus money. Any time spent on learning will be less than I’d earn just working, and at the end of the day I’d probably hire out anyway.
I appreciate the feedback. Thanks!
There are tons of videos on YouTube on how to sell on Amazon and they are free. Really that’s all of the TV you should be consuming if you’re going to undertake this endeavor.
Learning is good, just try to keep the cost of the mistakes small.
Without much context into what the product is, I’ll speak generally. If it’s a consumer product then I think it would be a good idea to get your product in front of as many people as possible starting with those around you - family and friends. Are they target users of your product? Social media is also big. Create a tik tok account, instagram account, facebook, etc. post youtube videos explaining how to use the product and recycle them to all other socials. if it’s more of a utility (i.e. soap, dishwasher pods), then selling through amazon might be the best bet. good luck!
Thanks! Yes it’s a consumer product. A low cost stress/anxiety relief toy. Target audience would be the adults using fidget spinners, infinity cube, colouring book, that sort of thing. Like ‘an activity a day keeps the anxiety away’, if that makes sense. It’s a little weird but I’ve done some consumer testing and seems to get a lot of appeal.
Is the socials stuff something I’d expect from the marketing person or that I would do myself/hire out elsewhere?
The product dictates the marketing channel. Without knowing that I draw the product it is impossible to give you any ideas on which promotion channel to use.
It’s a low cost stress/anxiety relief toy. Target audience would be the adults using fidget spinners, infinity cube, colouring book, that sort of thing. Like ‘an activity a day keeps the anxiety away’, if that makes sense.
RangeMe.com helps products such as yours get into retail stores.
Thank you! I’ll check it out
I wouldn’t bring on a marketing person for $1000, a waste of money when you can use the internet + ChatGPT to learn basic marketing and put the money towards SEO and other promotions for your product. Amazon is a very saturated game, think about your products customer niches(children, people with adhd, etc) and build marketing materials around those niches - look at other products selling to the same verticals for inspiration
I understand but I simply don’t have the time sadly. I’m happy to spend this budget and lose the money if it gives me a good insight into the while process.
For a product that’s low margin, low profit and low volume in a space dominated by Amazon, I don’t see the benefit in doing it.
Unless, your trial market is to test for a high margin, high volume product, the time+risk vs. return are too far apart apart.
It’s the industry margins and there’s no avoiding amazon as a marketplace for the industry either. I get what ur saying and I appreciate the feedback, but it’s a constraint I have to work in.
There are other avenues that I can explore in the future but as u say, time+risk.
The benefit is the learning. That’s why I’m doing it. I’m here asking for advice for other ways I can learn from this while knowing this is a loss project.
Thanks for clarifying.
Is it a product that can be sold through other channels like brick/mortar retail?
Is it a product people need ?
I’m confused. Profit is at 3.50 a unit, hoping to sell 100/ month?
Wheres the money?
My initial impression is that your product is a impulse purchase found near the cash register and purchased by people waiting in line at the grocery or it is personalized with the name of a company and a giveaway at conventions.
In both cases you are likely looking for a distributor and selling your product at a wholesale price, otherwise you will need the market directly to the grocery or the 7-Eleven etc which is very time consuming
Interesting. And if I wanted to outsource reaching out to places like 7-Eleven, who would I be looking for?
Edit: sorry I mean what kind of person, sales guy?
Talk to people and chase down phone numbers. Find a similarly marketed product at your local 7-11. Ask the manager where it comes from. If they say “corporate,” then ask for the phone number of the person at corporate who they communicate with. Maybe it’s an independent distributor, but again they’ll know who that is…or they can tell you when the distributor typically comes by. Maybe they’ll just direct you to their district manager, but that person should also know.
These things aren’t secrets. And if somebody along that chain thinks they can sell your product, they’ll let you know. Just make sure you can produce enough and that you can wait to be paid.
You’ll have to provide displays, bar code data, packaging, etc. Packaging is typically around 20%-30% of the retail price, and the store will want a 40%-60% markup. So if your product cost is $5, your packaging cost will be about $1 and the store will want to sell it for about $12.
You may find the store will want to pay on 30 to 60 day terms. Or they may want you to provide products at your cost and you’ll get paid when they sell. If you find an independent distributor they can help with education on this and possibly absorb some costs if you need prepayment. Be prepared to negotiate for every piece of it.
If your product is unique, get a patent. You don’t want it to take off and have somebody else steal the idea. You’ll want to talk to an attorney about this.
Good luck. It’s a fun world to be in, but it can be challenging until you get your sea legs.
Have to agree, find a distributor.
Marketing direct to consumer will be death by a thousand cuts at such a low margin per unit. You’d struggle to acquire customers for less.
You may wish to get expert advice from people who have been there and done that at score.org.
Score is part of the small business administration
Thanks I’ll check them out. I’m not US based, is that gonna be an issue?