Many electronic trading businesses are fighting. The profit margins are thin; Cash is low.
As a host of “electronic trade conversations” usually interview with entrepreneurs and managers. But I will start for this episode and share Beardbrand, my company, my company, for more than ten years.
This is followed by my tips on how to add margins to business in electronic trading. Jank’s narrative sound is inserted below. The transcription is condensed and adjusted for clarity.
Clarfy targets
I believe in bootstrapy businesses that prefer freedom over money. My disks differ from Sean Frank drives on Wallet-Maker Ridge, which aims to build a billion-dollar company. My goal is to create a lifestyle that allows me to do what I want.
Having a clear goal makes it easier to focus. Business of billions of business means to think about a wide market, but the focus on niche can result in high margins, low stress copman, a slim and manager, even at one or two million annuals.
Think about your products and how you communicate with customers and prospects. Do you talk to a specific value or in broad generals? 90% gross margin – revenue lower goods costs – allows flexibility to offer discounts or volumes. Creativity comes from the beginning of high margins versus fighting with products that cost too much.
Improve operations
Transport costs are significant. If you do not compare rats every year from FedEx, UPS and DHL, you leave the money on the table. If you are using a third -party fulfillment provider, ask what they are doing to reduce shipping costs. As a manager of your company, your job is not to serve sellers. It is to ensure the best prices and value for your customers.
Think about what is unnecessary in your business. For example, in Beardbrand we sell directly to consumers (not in physical stores), which means that we can use minimal packaging for a low committee.
Shrinkflation – a reduction in the size or quality of the item – is another option. There is a reason for the brands have been using them for decades. For example, Montana Knife Company fits on two other knives on a steel leaf slightly shortening the length of the blade – adding stocks without rising costs.
Improvement of production. Negotiations directly with the manufacturer can offer savings, just as it can produce in-house. Josh Paulson of Quality Cage builds internally Chinchill Cages, giving him a competitive advantage and maintaining the cost of low sales produced on request.
Internal production can reveal that optimization sellers can overlook.
Marketing upgrade
Many businesses create a website, launch some ads and call it a day. But you can do much more. In Beardbrand we help people love a person in the mirror. To support this, we provide stylish consultations where customers send photos and consult with hairstyles and products. The offer of more professional knowledge can build loyalty and orally.
Adding small notes about gratitude or sending birthday cards supports repeated sales. We use postpilot to send birthday cards to our 1,000 customers, often included Yeti mugs with our logo. A $ 20 gift for someone who spent thousands, goes a long way to organize relationships.
Limited edition for top customers can create loyalty. Hosting exclusive events promotes the community and excitement around your brand. Instead of spending $ 5,000 for ads, insert an unforgettable event and get a much greater value from the connection and energy.
Tag
Conversion of impact on site in Ecommerce. Increase your brand upgrade of photography, layout, colors and fonts. These details matter. Consider whether warm or clear lighting works best for your product and ensure that with your brand and target audience ensures that everything in terms of human models.
Premium brands sometimes avoid publishing reviews and focus on instrument on their products and services. It’s a bold move, but it increases their image.
Excellent materials can also help, especially in niches where customers will pay for the best.
Improve the cash register
Offer for a premium return. For example, you can add “white gloves” at the checkout, just like a choice of premium transport. Returnlogic, such as the automatic return process, helps customers and brands. Other options include an offer for $ 2 or $ 2 for returns to free from priority.
In addition, consider a range of accessories with a high amount at the cash register. At Beardbrand we add quality tweezers for $ 10, which costs $ 1. This strategy mimics grocery stores that have placed small items with a high -edge near a point sales station.