Promoting your products, generating sales
In a vast world of online sales, competitive pricing where online buyers are spoilt for choice and want everything at bottom dollar prices, how does a small online business preserve profit margins, sustain their lifestyle and pay their mortgage whilst providing consumers with good quality products?
Cashflow is key, and should be ever present with daily sales of volume, selling items that do not return a great profit margin but do generate many sales is the answer.
Two things are happening here
- You are creating a new customer in your database, you can further cross promote products with greater margin to these customers.
- Generating enough valuable cashflow to pay bottom line expenses to keep your business open.
Avoid running Pay Per Click ad campaigns on these high volume low price items. Use organic seeding, competitions and existing mailing lists to push these items. Keep the costs to sale low. Keep the end goal in mind, What you're trying to achieve is to grow your customer base.
With your low volume high margin items run steady and slow Pay Per Click ads coupled with exposure to the existing customer database. It's okay to have low profit margins on some of your product range or offerring just ensure that you sell in high volume. If you have too many low volume items and not enough high volume, drop some items off your stock inventory or liquidate at 0% profit using an online sale and furthermore gain extra customers.
In short don't be afraid to make little money on some items, they're useful products that when sold in volume can prop up the business and keep you online.