There’s some sort of awesome light bulb effect that occurs when you realize you’ve come upon a great idea. If you’re new to the blog, you can catch up by reading the first post where I announced I would be changing my FBA strategy. I have since completed many orders, testing product, having it customized with logos, and you can read up on that here. Now that I’ve completed a full month on Product 1, I have numbers and lessons to share.
Before I jump to the numbers, my lessons I have learned thus far are still plentiful.
After my third purchase, or as I call it “Trial 3″, I decided I have to keep up on stocking this product. At that point I had only purchased a sum of 140 units because the manufacturer I had was willing to work with me. This is not always the case with factories, which I have definitely learned. During December I had a major inventory snafu, and spent most of the month without product. In January I was sure this had changed, only to find myself 4 days without product, again. Well, fool me twice and the rest is on me. I have since ordered another 300 units, and they are all in hand and accounted for. I have about 100 units to send into the warehouse and then I will order again in about a week. If the factory I work with is having a short Chinese New Year. For those of you not aware, Chinese New Year can last from a few days to up to 3 weeks in some areas. I have enough product to last the month just in case.
I feel like my packaging has progressed over the last few months as I got my bearing. I wasn’t a fan of the factory packaging and decided to create my own. Since then, its been more assembly time. Its not too bad, but this will not be a long term solution. I am contacting printers now to find someone to create me a custom retail box. The problem is that most box companies say that orders of 500 or 1000 are small potatoes and costly. I’ll have to make a decision soon as to ordering quantity.
I recently listened to Pat Flynn’s Smart Passive Income Episode 144. I’ve listened to Pat for years now and this was one of my favorite episodes. I don’t often plug another blog or podcast, but this came at the right time for me. I have another PL product at the warehouse now, and it has had ZERO traction thus far. Listening to this episode reminded me to focus on one product, then stay in the brand and create upsell products. I have done this, and I am seeing bigger sales because of it. I hope to talk about that more in the future. Right now, I’ve purchased a complimentary product and only purchased 15 to test it. I’ve sold 7 or so, and 3 of them were purchased WITH product 1. That’s a $50+ transaction.
I talked to my brother-in-law about PL, and talking to new blood about an exciting adventure just rejuvenates your own passion. Having someone as excited as you are really helps you stay on the ball. I have since nailed down my goals, on paper for this particular product. I based the goals loosely on my own dollar goals, and broke them down into small hurdles until the “ultimate goal” as I like to put it.
Now that you’ve made it all the way here, let’s talk numbers! Despite my 4 day snafu during January, here’s my total sales & units.
Gross Sales: $2840.22
Units Sold: 116
Avg Sale: 24.48 (I was pricing from $22.99-25.99)
I charted this info daily, watching the colors purchased, price purchased at, and what was being purchased when. I’m pretty sure I’ll be finalizing price at $24.99. My approximate margin is 53%. That means my take home on this was about $1505.31. And frankly, I couldn’t be more pleased.
My add on item sold 7 units, not included in the numbers above. One unit sold immediately after hitting the warehouse at $29.99 so I raised the price to $31.99. I will continue to play with the numbers on this product. Stay tuned on that one!
January was a great lesson for me. I met my first goal of $2100 gross sales. And hope to see great growth in February.
How are you doing in PL?