My Fastlane Idea (It's simple!)

[Gale4rc]

I'm already importing some watches and the online space for what i'm selling is very competitive and just a headache.......

New Goal: Stop selling online (as a main source of sales)

Sell to individual botiques and fashion shops around town. With branding, I'm sure I could generate online sales over time.

So rough figures

Offer wholesale minimum order 50pcs , at $10ea

If I can get 10 stores filled with these watches and get them re ordering, thats 5k/mo to work on whatever.

So with all being said, this isin't directly fast lane but, can definitely generate some good passive income.


Any ideas or feedback ??

 

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[Matt B]

If you think direct online sales in this industry are a headache, I assume you're up for a surprise. Retail is a bitch.

Since you have no brand in a very brand-aware industry, you'll probably have to offer something to sweeten the deal for those shops to actually add your product to their range. This can be two things in your case: Exclusivity (which you have already ruled out) or very high retail margins.
Even then it's going to be tough to convince a shop owner to add a new supplier for just one product.

You really need to figure out what the retailer's benefit from working with you is.

 

[Gale4rc]

If you think direct online sales in this industry are a headache, I assume you're up for a surprise. Retail is a bitch.

Since you have no brand in a very brand-aware industry, you'll probably have to offer something to sweeten the deal for those shops to actually add your product to their range. This can be two things in your case: Exclusivity (which you have already ruled out) or very high retail margins.
Even then it's going to be tough to convince a shop owner to add a new supplier for just one product.

You really need to figure out what the retailer's benefit from working with you is.

Thanks - It's definitely high margins. I've sold these watches for $30 (to happy buyers) and wholesale will be roughly $10

Also I was thinking of focusing on mainly smaller retail shops. Do you think this is a good idea? Sounds like you might have some experience in this world....

I am just having trouble bringing traffic to my site... The google ad words are way too high cost, got some good social people talking about it (one chick with 2.9million followers on pinterest and it generated more repins/likes than most of her stuff she pins) and its generating sales but, it's just small spikes that go away fast (1 day momentum). Working on some bloggers.

 

[Matt B]

I have experience in retail for branded electronics.

Now the question is, is that kind of retail markup really something out of the ordinary in your industry?
How are you going to handle (read:finance) terms of payment?

In general it's probably a good idea to start with the small mom and pop stores before moving on to a larger scale. Just talking to them is going to help you refine your business model.

 

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[Stu_Hefner]

I am just having trouble bringing traffic to my site... The google ad words are way too high cost, got some good social people talking about it (one chick with 2.9million followers on pinterest and it generated more repins/likes than most of her stuff she pins) and its generating sales but, it's just small spikes that go away fast (1 day momentum). Working on some bloggers.

Have you got a social media account for your product? It's important to start developing brand awareness on instagram and pininterest. Especially if you have someone with 2.9million followers vouching for you. Did you reach out to her yourself and she pinned your product or did she find your watches herself and liked them enough to post? You might like to make her an exclusive wholesaler for the product. That way she can continuously engage your product with her audience. It's a win/win. You make more sales and build brand awareness; she makes some commissions off the sales.

If you do it right it can be very powerful for you. It will funnel an audience to your social media pages and with the right marketing (hint: mothers day special sales, competitions give aways) you will soon have yourself a fastlane. I've actually helped someone with something similar. Now their brand has 11k followers and sales are a bit more steady then the random spikes you get when popular people share your product.

 

[Gale4rc]

I have experience in retail for branded electronics.

Now the question is, is that kind of retail markup really something out of the ordinary in your industry?
How are you going to handle (read:finance) terms of payment?

In general it's probably a good idea to start with the small mom and pop stores before moving on to a larger scale. Just talking to them is going to help you refine your business model.

It's definitely a new idea that I have no experience in at all (might be good just to do it so I know what to expect with any future ideas)

But, now i'm wondering if I should just stay online and grind it out......................... I don't even know how to grind out more sales online though and thats where im frustrated -_-

 

[Gale4rc]

Have you got a social media account for your product? It's important to start developing brand awareness on instagram and pininterest. Especially if you have someone with 2.9million followers vouching for you. Did you reach out to her yourself and she pinned your product or did she find your watches herself and liked them enough to post? You might like to make her an exclusive wholesaler for the product. That way she can continuously engage your product with her audience. It's a win/win. You make more sales and build brand awareness; she makes some commissions off the sales.

If you do it right it can be very powerful for you. It will funnel an audience to your social media pages and with the right marketing (hint: mothers day special sales, competitions give aways) you will soon have yourself a fastlane. I've actually helped someone with something similar. Now their brand has 11k followers and sales are a bit more steady then the random spikes you get when popular people share your product.

Honestly out of those 2.9million , I made 4 sales and 20 signups for the free shipping code (so I could get their email)--- sent them the code and got 0 sales. The pin had 200+repins in a day - haven't checked on it since then.

So if i'm understanding this right, you're saying - focus on social media presence (in every aspect) and partner with social media gurus... This alone can build a solid stream of business ? (My main goal would be 10sales a day, $200/day )


--I reached out to her on pinterest... Have another girl going to do it with around 3mil followers as well.

 

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[Stu_Hefner]

Honestly out of those 2.9million , I made 4 sales and 20 signups for the free shipping code (so I could get their email)--- sent them the code and got 0 sales. The pin had 200+repins in a day - haven't checked on it since then.

So if i'm understanding this right, you're saying - focus on social media presence (in every aspect) and partner with social media gurus... This alone can build a solid stream of business ? (My main goal would be 10sales a day, $200/day )


--I reached out to her on pinterest... Have another girl going to do it with around 3mil followers as well.

It may and it may not. You will have to test it and track it. How engaged is the audience to the social media guru you are talking about? Some social media personalities have a lot of pull while others just get a lot of likes, shares because of memes or being attractive. The difference is how people respond to them. You can go after an account with 200,000 followers or you can find an account with 40,000 hardcore followers that listen to every word. The latter will outperform the former in terms of promoting a product in the market.

In my friends case, we knew exactly who we wanted to target and that they'd sell because this person has somewhat of a cult like following. So that really worked in my friends favor.

 

[Matt B]

It's definitely a new idea that I have no experience in at all (might be good just to do it so I know what to expect with any future ideas)

But, now i'm wondering if I should just stay online and grind it out......................... I don't even know how to grind out more sales online though and thats where im frustrated -_-

What is your USP and how are you marketing that? What are your current distribution channels apart from your own store?
I still think it may be a good idea to visit a shop and talk to them for a while. Find out which challenges they're facing and what their best-sellers are (and why).

I honestly think your predominant problem is not really the lack of sales but the lack of knowledge about the industry. Once you've conducted your research you'll know if the concept needs to be tweaked or dumped.

 

[Gale4rc]

What is your USP and how are you marketing that? What are your current distribution channels apart from your own store?
I still think it may be a good idea to visit a shop and talk to them for a while. Find out which challenges they're facing and what their best-sellers are (and why).

I honestly think your predominant problem is not really the lack of sales but the lack of knowledge about the industry. Once you've conducted your research you'll know if the concept needs to be tweaked or dumped.

My main concern though is with even a good concept, if no one sees it - it still wont generate any sales.

My USP is bringing luxury to the masses.... Most watches like the one i'm selling, sell for $40++ easily. I'm bringing it in at a lower price point.

I know the concept is fine because people respond to it really well, i'm having trouble getting people to see it though.

 

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[zander]

With branding, I'm sure I could generate online sales over time.

Honestly out of those 2.9million , I made 4 sales

How have you followed up with your 4 customers? Right now, they are your biggest source of information that seems to be untapped. Who are they? Why did they buy? What would it take for them to buy again or refer their friends? While you try to figure things out on the retail/online world, these 4 people should become your best friends. Treat them like royalty, and that 4 will become 8, which will become 16, etc.

That's how you build a brand.

and 20 signups for the free shipping code (so I could get their email)--- sent them the code and got 0 sales

Similarly, why weren't there any sales? Ask them. Was it style? Price? Too similar to the watch they already have?

 

[Matt B]

Given what you've told us, I'd keep the distribution online and shoot in each channel (marketplaces, own store) but still reach out to some local stores for some extra input.

In order to get additional (long-term) traction from the social media gurus, it could be viable to sub-brand and market the watches as special editions for social media guru XYZ (e.g. MJ watches powered by Gale4rc). In return you could offer a lifetime royalty or something similar and give the marketer a larger incentive to push your product a little more. Obviously you'd have to check the MOQ for some minor adaptions with your supplier.

I'm personally not a huge fan of the social media approach, but hey, whatever works to activate your target audience. Btw: I don't think you're presenting your USP very clearly. What you've mentioned is your brand vision and not really a USP (or maybe a rather generic one at best). Try to re-formulate the USP specifically for your target audience!

 

[Gale4rc]

How have you followed up with your 4 customers? Right now, they are your biggest source of information that seems to be untapped. Who are they? Why did they buy? What would it take for them to buy again or refer their friends? While you try to figure things out on the retail/online world, these 4 people should become your best friends. Treat them like royalty, and that 4 will become 8, which will become 16, etc.

Thanks - going to do this right now and contact the people who haven't bought yet. Really good advice.

I'm personally not a huge fan of the social media approach, but hey, whatever works to activate your target audience. Btw: I don't think you're presenting your USP very clearly. What you've mentioned is your brand vision and not really a USP (or maybe a rather generic one at best). Try to re-formulate the USP specifically for your target audience!

Will work on this and get back to you


Thanks everyone for all the help, much appreciated.

 

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[Tom.V]

My USP is bringing luxury to the masses.... Most watches like the one i'm selling, sell for $40++ easily. I'm bringing it in at a lower price point.

Undercutting the competition isn't really a USP, it will cause you more harm than anything. My question is how much testing have you done? Being watches, you have tons of potential online outlets you can reach out with. Amazon, Ebay, maybe Fancy, hit up RetailMeNot and coupon sites to offer discounts there, otherwise sell for max profit on your ecomm. Have you played around with any paid traffic? Do you have a fully optimized landing page that you have split tested to death?

Don't give up just yet, there is work to do.

 

[biophase]

My USP is bringing luxury to the masses.... Most watches like the one i'm selling, sell for $40++ easily. I'm bringing it in at a lower price point.

I know the concept is fine because people respond to it really well, i'm having trouble getting people to see it though.

This is not fine. Bringing luxury to the masses, kills its luxury. If you sell a $40 watch for $10, then it's a $10 watch. You are actually killing your own market. People aren't responding to it because they aren't buying. If your watch sells for $40++ easily, then why aren't you selling for $40++? See what I mean?

 

[Gale4rc]

This is not fine. Bringing luxury to the masses, kills its luxury. If you sell a $40 watch for $10, then it's a $10 watch. You are actually killing your own market. People aren't responding to it because they aren't buying. If your watch sells for $40++ easily, then why aren't you selling for $40++? See what I mean?

I've actually been working with a guy who owns an ad agency now and has been in the business of brands his whole life (mine is still a work in progress) and he is the one who told me stay with the idea of bringing luxury to the masses. I don't want to go into boring details but, it's basically for my demographic, they aren't affluent and based on their buying habits that we studied together, this type of thing should appeal to them.

- I'm not selling them for $40 because I want to sell them cheaper and attract more potential buyers.

Amazon, Ebay, maybe Fancy, hit up RetailMeNot and coupon sites to offer discounts there, otherwise sell for max profit on your ecomm.

Working on getting onto Amazon. Currently on Ebay/Fancy/Etsy - Retail me not is a good idea. Thanks!

The problem i'm having on these websites is that you're still just hoping for traffic, there is no traffic directed to you.

Haven't tried split tests yet - Have been playing around with different types of paid traffic and it's not converting yet which is costing me $$$

 

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[biophase]

I'm not selling them for $40 because I want to sell them cheaper and attract more potential buyers.

You know then, that your brand will be perceived as a cheap brand.

 

[Gale4rc]

You know then, that your brand will be perceived as a cheap brand.

I appreciate your advice and input but, i'm sorry i'm going to listen to the guy running the ad agency on branding.

 

[1step]

I appreciate your advice and input but, i'm sorry i'm going to listen to the guy running the ad agency on branding.

You realize the people who are offering you advice are pretty successful right? You're pretty much insulting some of the most successful people on this forum...
Your kickstarter thread just resurfaced the other day. Why would people continue to help you? The trend seems to continue with you asking for advice but not really being interested in it and then getting mad when people try to help you...

Have you still not learned the lesson? In that thread you said "this forum had nothing to offer you" and that still seems to be the case.
https://www.thefastlaneforum.com/community/threads/check-out-my-new-kickstarter.48207/

I guess if you want to support your opinion can you please name some luxury brands that operate the same way you are planning to?

 

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[Gale4rc]

You realize the people who are offering you advice are pretty successful right? You're pretty much insulting some of the most successful people on this forum...
Your kickstarter thread just resurfaced the other day. Why would people continue to help you? The trend seems to continue with you asking for advice but not really being interested in it and then getting mad when people try to help you...

Have you still not learned the lesson? In that thread you said "this forum had nothing to offer you" and that still seems to be the case.
https://www.thefastlaneforum.com/community/threads/check-out-my-new-kickstarter.48207/

I guess if you want to support your opinion can you please name some luxury brands that operate the same way you are planning to?

Take a step back and breathe, I asked for his advice in his thread and stated it was valuable... Not trying to get in any arguments or get this thread hijacked. I'm working with someone who I deem successful in branding and I have choosen to follow his advice is all.

Seriously, please don't hijack this thread.

 

[biophase]

I appreciate your advice and input but, i'm sorry i'm going to listen to the guy running the ad agency on branding.

Sure no problem, that's definitely a path that you can take. But from my experience and what I've seen, it's not the most efficient way to make money. What will happen to you is that someone will import the same $10 watch and sell it for less than you. And because you have built a known cheap brand, it won't still up to price competition.

Imagine you are at Target buy a cheap t-shirt. You are looking at it because you want a regular old t-shirt. You see a brand you've always bought for $5, and now there is one next to it for $4.50. You'd pick the $4.50 shirt because in your mind you were looking for a cheap t-shirt, not a specific brand cheap t-shirt.

 

[Gale4rc]

Sure no problem, that's definitely a path that you can take. But from my experience and what I've seen, it's not the most efficient way to make money. What will happen to you is that someone will import the same $10 watch and sell it for less than you. And because you have built a known cheap brand, it won't still up to price competition.

Imagine you are at Target buy a cheap t-shirt. You are looking at it because you want a regular old t-shirt. You see a brand you've always bought for $5, and now there is one next to it for $4.50. You'd pick the $4.50 shirt because in your mind you were looking for a cheap t-shirt, not a specific brand cheap t-shirt.

The thing about marketing the watches /// any type of fashion merchandise at a higher price// luxury price is this:

I read about a 20 page 'article' from http://adage.com/insights/ sent by the ad guy and it basically said that - when you go into that higher price range with this type of product to my target demographic, they are rather pay for brands that they already know and love.

So the brands mission is ' Luxury For All' - and our USP is being worked on right now. But, I definitely feel strongly about not moving at the prices.

 

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[codo3500]

The thing about marketing the watches /// any type of fashion merchandise at a higher price// luxury price is this:

I read about a 20 page 'article' from http://adage.com/insights/ sent by the ad guy and it basically said that - when you go into that higher price range with this type of product to my target demographic, they are rather pay for brands that they already know and love.

So the brands mission is ' Luxury For All' - and our USP is being worked on right now. But, I definitely feel strongly about not moving at the prices.

You can't have price as your selling point, and still have Luxury, it just doesn't go together, they're polar opposites. You will never have a solid brand identity. I see what you're trying to achieve, but it just won't work. There is nothing luxurious about a $10 watch, and you don't have the buying power to make it some special, so you're trying to build a brand in an incredibly saturated niche with something that's too dear to be cheap, and too cheap to be luxurious - there is no gap to be filled here my friend, it's NOT a gap in the market; it's a gap in mentalities. There is no in-between, if they really want luxury, they'll go with an established brand and find the extra dollars.

You have to think about the motives for the buyer.

A cheap buyer buys purely on price - and due to lack of buying power, you will be beat here.

A luxury buyer buys for status - and your brand has none.

Good luck, you'll need it.

 

[Stephanos83]

Did you ask for customer references on that ad agency that's doing your branding? If you're going to trust someone with your business... your life... they better have a proven track record for what you're trying to achieve. Just because someone has an office and a company doesn't mean they're worth their salt. Listen to guys like Biophase. He's well-respected here and has a proven track record in e-commerce... the type of operation you're getting yourself into.

 

[Gale4rc]

You can't have price as your selling point, and still have Luxury, it just doesn't go together, they're polar opposites. You will never have a solid brand identity. I see what you're trying to achieve, but it just won't work. There is nothing luxurious about a $10 watch, and you don't have the buying power to make it some special, so you're trying to build a brand in an incredibly saturated niche with something that's too dear to be cheap, and too cheap to be luxurious - there is no gap to be filled here my friend, it's NOT a gap in the market; it's a gap in mentalities. There is no in-between, if they really want luxury, they'll go with an established brand and find the extra dollars.

You have to think about the motives for the buyer.

A cheap buyer buys purely on price - and due to lack of buying power, you will be beat here.

A luxury buyer buys for status - and your brand has none.

Good luck, you'll need it.

Ok lets just say I market it as cheap then so we can end the branding conversation and move on ........
(It seems like people just want to prove they're right... Cool, maybe you are... I'm on a path with this branding guy i'm already talking to and i'm staying on it... Everything else i'm all ears)

Did you ask for customer references on that ad agency that's doing your branding? If you're going to trust someone with your business... your life... they better have a proven track record for what you're trying to achieve. Just because someone has an office and a company doesn't mean they're worth their salt. Listen to guys like Biophase. He's well-respected here and has a proven track record in e-commerce... the type of operation you're getting yourself into.

Yeah, this guy is pretty huge in the ad world and not only worked in top agencies / with top brands but, WSJ and other major news sources have covered him. He's just being nice and helping me.

Also about Biophase... I know who he is (and I like him) and respect him like I already said. But, right now branding isin't my issue at all - it's traffic. When I get it, it converts


PS - I get that you're all trying to help me and get me to listen to Biophases point because he IS successful and has a lot of good advice but, as far as branding goes this other guy is successful too and i've been working with him on specifically branding alone and i'm ready to see where that takes me. If you think thats failure, fine. None of us will know regardless if I can't get the traffic up! (haha) This thread started off really good unexpectedly lets just try to get it back there....

 

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[Stephanos83]

Find some popular Youtubers that do watch reviews. Offer them a free watch (or multiple colors) for a review. Could be some cheap publicity, and if their camera work is good, it'll bring out the best in your product. You might want to include some notes for the reviewers highlighting some things about the watch and what value it provides to your target customer. Might be hard to convey value if you're marketing it as cheap though. Good luck.

 

[Gale4rc]

Find some popular Youtubers that do watch reviews. Offer them a free watch (or multiple colors) for a review. Could be some cheap publicity, and if their camera work is good, it'll bring out the best in your product. You might want to include some notes for the reviewers highlighting some things about the watch and what value it provides to your target customer. Might be hard to convey value if you're marketing it as cheap though. Good luck.

I actually tried this and e-mailed 20-30 of the most popular 'fashion' YouTubers and only 1 replied and it was their manager. Told me he will make sure they will get the product but, no promises about showing it. I may still ship one off anyway.

I'm wondering if there is something else I can target rather then 'fashion' and find my target audience there?

--I was actually scared to give watches to YouTubers with around 1k views per vid but, it might actually be a good idea. If I can get 10 of them to support the watch, thats 10k impressions for $50 (my cost). Then as I grow , maybe target higher status YouTubers and have the ability to throw in cash!

^^^ What do you guys think of that?

 

[Stephanos83]

If it's an inexpensive luxury style watch, who are the people that would actually buy it? What about people that specialize in bargains? Who likes luxury style watches, but typically doesn't have the money to afford one at a high end price? Guys in school maybe? Typically, I've found that people who like luxury style watches WANT to fork over the money for the high end product. It's a status symbol, much like many other luxury items like pens, cuff links... Mont Blanc comes to mind, as well as many others that typically have stores in airports.

You should probably know who your target market is prior to choosing the product... Identify the need before providing the solution.

 

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[codo3500]

The problem here is that your traffic is going to be completely dependent on your brand identity. Your marketing will always flow from that. You need to know and understand your customer - so you need to know who that is before you can get traffic, because you need to know where they hang out.

I'd recommend surveying your current customers, find out what they all have in common. You need to know your customer completely, you need to know what they eat for breakfast!

Work out your "Ideal Customer". You need to know the right age range, their interests, salary bracket - anything you can target. Once you know that, you market to them directly, through FB ads, or POF ads, or whatever will give you the targeting you need. If they don't convert from there, you have to go back to the drawing board.

Ultimately you're aiming for Product-Market Fit, you're at early stages, you need more data, and to talk to your customers. Survey them, follow them up, find out as much as you can about them - then you'll see patterns and find some demographic information out, which will be the core of how you find your traffic.

The alternative is split-test a bunch of markets you have a *hunch* about. It's time-consuming and expensive; and seeing as though you already have some traction and customers to talk to, use them to bypass this expensive guessing game.

We're all here to help, I think you may underestimate some of us guys on the forum and just how much experience we have; we would love to see you succeed! We just hope you take on any of the advice you can and at least try it out.

 

[Gale4rc]

Thanks guys, just made my first sale off instagram after only being active a day and a half now... Pretty stoked!

-Also the buyer is a celebrity makeup artist ( a big one too, I followed her insta to her site)