5+ Months Project Failed Miserably.. Case Study.. What's Next?

[liljmoneyswag]

1) If you are going to sell the same product as someone else and market to the same audience, atleast have a competitive advantage. i.e cheaper price, throw in additional items...

2)If i saw your ad on facebook and decided to google electric lighter i would probably find cheaper lighters.

3)if i google electric lighter, i would find Plazmatic x, (maybe that's how they are getting there customers?)

4)Maybe Market the USB charger? If the charger can be used for the iphone or samsung phones then the consumers might have have another reason to buy. If i buy this lighter i am also getting a phone charger.

5) If you are going to lower the price, you could do a email list popup and give them like a $20 giftcard if they give you there emails.

 

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[biophase]

Not sure if the OP was holding stock or at what price he paid, but what about selling 5 for $49. Make the offer something that a person clicking on the ad cannot pass up.

 

[LPPC]

Not sure if the OP was holding stock or at what price he paid, but what about selling 5 for $49. Make the offer something that a person clicking on the ad cannot pass up.

Thank you for the suggestion. I'm not holding much stock, only 10 lighters. I paid $8.5 for a single item alone. Why would someone want to have 5 lighters?They can give it away, but how many do that?

@liljmoneyswag Yes people will probably go search for a cheaper version after seeing my ad. Only a USB cable is included, no wall charger Thanks for your input!

 

[biophase]

Thank you for the suggestion. I'm not holding much stock, only 10 lighters. I paid $8.5 for a single item alone. Why would someone want to have 5 lighters?They can give it away, but how many do that?

I would order 5 and I don't smoke. I would carry one in my backpack, one in my cycling backpack, one in the car, one at home for fireplace and BBQ grill.

The point is, you don't need to know why someone would buy 5, you just need to offer it.

 

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[MidwestLandlord]

You wanna blow them out at cost? I'll buy them and resell them. (you pay shipping haha)

I'd put them in my store, throw in a wall charger (which I already carry, retails at $2.99 and I only pay $.90 for them) so my customers have everything they need for the lighter, and sell them for $14.99

By my count I'd make $55.90 with virtually no work.

Maybe I'd throw in a wall charger AND a car cigarette lighter charger for $1.80 cost and get the full $19.99 for them.

That'd bring my net to $96.90 by adding the two value add-ons.

OP is learning so much in this thread!

 

[LPPC]

I would order 5 and I don't smoke. I would carry one in my backpack, one in my cycling backpack, one in the car, one at home for fireplace and BBQ grill.

The point is, you don't need to know why someone would buy 5, you just need to offer it.

So you would offer the option to buy this lighter individually but also in packs of 5? Or only offer it in packs of 5? I guess offering both options would be better.

@MidwestLandlord What does blowing them out at cost mean? I'm not a native English speaker I also don't understand how you came up with these numbers (calculations)?

And yeah man, I've learned so much from this thread! Really grateful for the input of you guys.

 

[MidwestLandlord]

@MidwestLandlord What does blowing them out at cost mean? I'm not a native English speaker I also don't understand how you came up with these numbers (calculations)?

I was joking that I would pay you your cost so you could get rid of them.

Net profit is the calculation you need for this. Gross revenue (what you collect) minus the cost of the product (what you pay for it) = net profit (net of costs)

Lighter: $8.50
USB Wall Charger: $.90
USB Cig Charger: $.90
Total cost: $10.30

Retail: $19.99

$19.99 x 10 = $199.90
minus
$10.30 x 10 = $103.00

= $96.90 net profit

(this doesn't include my indirect fixed and variable costs of selling it though)

 

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[MidwestLandlord]

So you would offer the option to buy this lighter individually but also in packs of 5? Or only offer it in packs of 5? I guess offering both options would be better.

It's not what you like, it's the consumer - Joe Dirt

Open your mind to possibilities. There really are no rules, other than provide a product or service that has a need. That's it. That's the only rule.

You've proven there is no need for a single lighter for $50. So change the offer! Get creative! Don't get stuck on one way of doing things!

5 for $50? Why not?

See how many ways you can not sell this lighter. I'm dead serious. Find out what doesn't work, and you end up finding what DOES work.

Fail early and fail often.

Besides, you've got very little money wrapped up into this, so have fun with it!

 

[MJ DeMarco]

Any updates on this?

 

[Supa]

Have to agree with @biophase, simply copying another company's product is a fcked up thing to do imo. Taking a product and making it somehow better is a different approach, but it seems (and like you write it) that you just copied their product.

Lately I get those Plazmatic ads on FB targeted at me and tbh I was interested in what this is and clicked one ad. The thing is after seeing the price it was an instant turnoff, at least for me, a lighter is not worth the effort to 1) pay such an amount for ONE lighter, and 2) to order it online, when you can get cool lighters everywhere around the corner.

I still think they are a great product, maybe, like bio said, if you do a 5 for $50 it'd be more interesting and worth the ordering and buying. Or maybe give them a twist to make them better, cooler, more interesting.

 

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[LPPC]

Any updates on this?

Yeah I let it rest for a while. I started working on it again today. I will keep this thread updated.

 

[LPPC]

Any updates on this?

Final update on the project:
I spent $15 on a PPE Ad on Facebook with very precise targeting (90k audience) and made 1 sale.
Then I spent another $50 on Facebook ads but with a larger audience (900k) and got 0 sales.

I think it's time to move onto another project.