Your perfect product: have you identified it yet?
Ideally, your perfect product is already hiding in plain sight. It’s the product that someone is almost always willing to buy. It is a product that has a great profit margin. And it’s a product that you actually enjoy producing: because it doesn’t take a lot of time.
Do you have a product in mind?
If you are having trouble, I’m guessing that it is the “great profit margin” that might have you stuck. And there’s an easy fix for that: raise your prices so that the price is DOUBLE your cost to produce it. That’s the easiest way to finding your pricing sweet point. If you’re already there and not making money, you will want to raise it a little more – and don’t forget to include shipping costs.
As you work on that, I want to share 5 ways that identifying your perfect product will change your business:
- Content creation will get easier. When you have a perfect product, you are no longer trying to sell “all the things”. Rather than feeling fractured to promote multiple items, you can create a content creation plan that focuses on your perfect product as your core offering.
- Managing your finances will get easier. Why? When you are creating multiple products, it is harder to identify all of the costs associated with each product. Prices may fluctuate based on the amount of material, the cost of shipping and/or the cost of sourcing the product itself if you don’t make it. A perfect product will make expenses more uniform.
- You will identify what you can scale, faster. Identifying your perfect product will allow you to determine how to grow your business in a smart way. Again, #doingthemost seems like a good way to join the marketplace from every angle but in reality, it prevents you from being really great at one thing – the one thing that will make you the most profit. In fact, identifying your perfect product allows you to hone in on how to make that perfect product even better.
- ROAS in ad spend will be easier to determine. When you create your perfect product, you will know exactly how much profit you will have for each item sold. This consistent predictability will give you confidence to run ads and grow your marketing campaigns. If you know how much your product costs, and how much profit you make per item sold, it’s an easy decision to start advertising. Your budget is determined by the amount of profit you have to work with per item. For example, a $10 ad spend on a $100 product that nets you $50 in profit is a pretty decent return on ad spend!
- Run your business – don’t allow your business to run you. For years I celebrated the “cha-chings” that came from my phone. I was so excited that someone valued my work and wanted to pay me for it that I never considered the profitability of my business. I just assumed that eventually I would start selling enough to make noticeably more amounts of money. As my sales grew but my bank account didn’t, I realized I had a problem: my prices were too low. I wasn’t making nearly enough profit to pay myself OR pay someone else so that I could do other things. In that moment, I made a decision: I would either sell zero products from that point on or I would make profit on my terms. I think it was about 5 years after I started my business that I became a business owner and not just someone who dabbled in selling things.
No more working for free.
And the result: profits doubled, work decreased. I am making more and working less. And it’s all due to determining my perfect product and finding ways to make it better.
Now – unless your word of mouth game is off the chain, you’re still going to need a marketing plan to get the word out. And if your marketing budget is small, this means grinding it out on social media. And if you don’t have the money for a social media manager, but you have $37 – I can show you how to create a strategic plan that prioritizes your perfect product and helps you create a marketing plan, 1 quarter at a time.
Sound good? Just visit www.crystalwaddell.com and check out my content planning workshop. I’ll be joining in live in March, June, and September. Hope to see you there!