I have an attitude problem

lapis_lazuli

No, not that attitude problem! :rotfl: I have been thinking about doing some selling to up my income, but every time I have an idea of what product to sell, it seems someone has already beaten me to it and is already selling that. Now I understand that everybody has to put up with competition, but I really don't see how it actually works. There is only so low you can price something. If you come up with a niche idea and have some success, soon the bigger companies will jump on the bandwagon and at that point a price war ensues and you lose. So, how is it possible for anybody small to actually succeed? I know people do, I just don't see how. Thanks

whitelabel

create some thing that no one else sells but people want and patent protect it to prevent others

source a manufacturer who will sell cheaper than to others so you can sell for less

sell to a market that no one else is selling to

make very little profit on each sale but make lots of sales to equal a worthwhile return

make a loss on some items (loss leaders) to entice sales of other items which have higher profit margins

Ilona

Hi, If you have that attitude about business, falling at the first hurdle, it's clear that you should not go into business. Someone who is focussed and totally dedicated to their business right from the start, stands a better chance of making a go of it than someone who see's all the pitfalls first before they even get to the planning stage.

A half hearted attempt is like simply dreaming about it, nothing much will come of it. When you are 100% behind your idea and determined to make it work, you stand a better chance. Research it fully first, any doubts, and it's a non starter because you wont be dedicated to it.
Ilona

TheSandman

Is this shop or internet-based?

If a shop is the channel you'll be selling through then you have to make sure you know what you're selling inside out, ie a lifetime hobby. The reason for this is that while I can get things for 20-50% cheaper online from various sites/countries/deals etc sometimes the value of top quality service and advice/recommendations is worth it's weight in gold. Hence why people still shop at John Lewis for their televisions or small, specialist, independent traders for exotic pets, mountain bikes, surfboards, car performance parts, wedding dresses etc etc

The service and advice you can give is what sets you apart from any large retail chain. Of course this restricts your choice of what to sell to maybe 1 or 2 things at best, solving one problem at least.

If it's internet based then again, similar to the specialist shop, you have to find a niche area where you can find somewhere to broker deals.

For instance; a few years ago I developed a keen interest in nutrition after really devoting my spare time to a sport. Trawling the internet I found a truer picture of nutrition from medical research databses not your standard 5-a-day poster in doctor's surgeries. But from this I discovered a lot of the best products were rare in the UK, instead sometimes a single brand had such a strangehold because it managed to have every endorsement/advert going average Joe would nothing other than to buy from Brand X when it came to looking for a supplement.

For the few people who do know their stuff, they're left purchasing, usually at a high expense, from a very limited number of outlets abroad. If you were to be able to gauge interest for the product, decide there is a market, work out a competitive selling price considering quality you can approach the company or wholesaler of the product abroad and offer to buy a big bulk order with considerable discount to then sell here in individual units at a profit.

Apply the last sentence to any product you deem fit.

geordie_joe

Ilona wrote: »

Someone who is focussed and totally dedicated to their business right from the start, stands a better chance of making a go of it than someone who see's all the pitfalls first before they even get to the planning stage.

I disagree, if you don't see the pitfalls first, and deal with them you are bound to fail.

Just look at all the others who have found an online wholesaler, picked their product lines and went ahead fully focused and 100% dedicated to their business. Only to find they had missed a big pitfall, dozens of others are using the same wholesaler and selling the same products.

lapis_lazuli

geordie_joe wrote: »

I disagree, if you don't see the pitfalls first, and deal with them you are bound to fail.

Just look at all the others who have found an online wholesaler, picked their product lines and went ahead fully focused and 100% dedicated to their business. Only to find they had missed a big pitfall, dozens of others are using the same wholesaler and selling the same products.

Exactly. I failed before at a project because I didn't realise half of the obstacles I needed to overcome. I don't want to make the same mistake. If you can see the obstacles and how to overcome them, then you can go for it 100% and have a good chance of success, but going in blind is surely foolish.

woodh1988

A big part of small business is your customers buying into your brand and your personality. As a small business you will never be able to compete with the big guys on price and people will always copy you, but if you build a loyal customer base who like your personality and brand it will continue to grow.

Make sure you research your idea first though!

zipady_do

I don't think it's necessarily a bad thing that you have competition, you just have to offer something different. Whether that's a better service because you know your stuff, a cheaper price as you've got a good supplier/willing to make less margin or a flash website that does things others don't, I think there's opportunities out there.

Look at the aggregators for example, they not only have competition, but they used that to create their business by simply providing a service that didn't exist before (simple price comparison). There's opportunities out there.