- Joined
- Aug 7, 2007
- Messages
- 358
Rep Bank
$555
$555
User Power: 21%
I am a (small) shareholder in a website that sells household appliances (washing machines, cloth dryers, fridges, etc) and TV sets.
Although the site attracts between 500 and 1000 visitors per day directly from Google, the conversion rate for these visitors is very low.
90% of the sales come from people (the other roughly 1500 daily visitors) who visit the site after checking prices on a price comparison website. So, the site has been positioned as a price fighter, since the initiator/entrepreneur is convinced that that is the only way to make money with this range of products. The consequence is that the gross margin is only approximately 5%.
After a loss in the first year the shop ended the years 2006 and 2007 around break-even.
As such a nice result for the entrepreneur and the 7 employees, but if the times get tough and consumer spending drops it only takes a proverbial minute to land in negative territory. Therefore, I am pushing the entrepreneur to expand his product line with products that are less price sensitive and if possible also a bit more recession proof.
I would appreciate your thoughts on products that would be a logical expansion for a website selling household appliances. Of course, the shop is already selling some add-ons such as special brackets for TV's etc. The margin on these brackets is around 15%.
But I hope to find higher-margin products that are unrelated to the present product range but that appeal to the type of visitor who comes to the site in the first place to look for a household appliance.
Thanks in advance for your views and suggestions.
Although the site attracts between 500 and 1000 visitors per day directly from Google, the conversion rate for these visitors is very low.
90% of the sales come from people (the other roughly 1500 daily visitors) who visit the site after checking prices on a price comparison website. So, the site has been positioned as a price fighter, since the initiator/entrepreneur is convinced that that is the only way to make money with this range of products. The consequence is that the gross margin is only approximately 5%.
After a loss in the first year the shop ended the years 2006 and 2007 around break-even.
As such a nice result for the entrepreneur and the 7 employees, but if the times get tough and consumer spending drops it only takes a proverbial minute to land in negative territory. Therefore, I am pushing the entrepreneur to expand his product line with products that are less price sensitive and if possible also a bit more recession proof.
I would appreciate your thoughts on products that would be a logical expansion for a website selling household appliances. Of course, the shop is already selling some add-ons such as special brackets for TV's etc. The margin on these brackets is around 15%.
But I hope to find higher-margin products that are unrelated to the present product range but that appeal to the type of visitor who comes to the site in the first place to look for a household appliance.
Thanks in advance for your views and suggestions.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
