It takes as much courage to have tried and failed as it does to have tried and succeeded.
– Anne Morrow Lindbergh
Now that you have picked your product, you need to carefully consider a few things when deciding how to market it. Let’s start with some facts. Separate your potential buyers into four different types of income levels:
- High
- Upper Middle
- Lower Middle
- Low
Keep these few simple facts in mind:
- You cannot target all four markets; you will confuse your customer.
- You have to look at your chosen product and decide which income level it fits into. This may sound dull or dry but it is very important.
- What are these four different types of people looking for?
Now let’s take a look at what a person from each level is looking for in a product. You have to know what they’re looking for in order to meet their expectation.
High: Looking for very high quality, price not so much an issue.
Upper Middle: Quality and style.
Lower Middle: Price and durability.
Low: Price.
Here is where more research comes into play. If you’re contemplating using online auctions to start, look at your product and figure out what category it falls into. When we started with our table sets I noticed there was plenty of low priced, low quality goods aimed at the low to lower middle brackets.
There were not much super high quality attractive items in the market. When we improved the design of the tables and had actual artists and illustrators doing the work, people noticed. When you have an artist buy your table we knew that we have hit our marketing strategy right on the
head. So why is this so important? Mixing categories confuses your customers.
People will follow your work, especially when you use a website. If you offered a high quality item one week and a dollar store item the next, you will confuse your customers. Pick one and aim for that demographic, you will find that it will make your marketing job easier. Don’t be frustrated if you have to go back and choose another product because it does not fit the mold.
Key Factors
High: Your higher priced goods will generally (not always) not generate great quantities of sales. You will sell them but not in super high quantities like you would lower quality goods. I notice I can always sell my used $1,000 car easily with a simple ad in the paper. When I go to sell my higher
priced used Cadillac, it takes longer. That person that wants that car is out there, you just have to be patient while he makes his way to you.
Upper Middle: Upper middle class is a very good target audience because they are very stable. Their spending habits are more predictable and yet they are still somewhat price conscious. Don’t think for a minute that you can sell them questionable product of low quality. They are very in tune with the Better Business Bureau and the logistics of trying to get a refund if
they are not satisfied. Make sure you understand that this class is usually very educated and somewhat savvy when it comes to spending their money.
Lower Middle: This class is price conscious as well as quality conscious. They want to get a decent product at a good price. Higher priced fine quality items will usually get passed on due to price. They will agree that the higher priced items and quality of them are desirable but will tend not to purchase them unless it’s a very special occasion. This is a huge segment of shoppers and should not be ignored.
Low: Low is simply low; mostly bargain hunters and trinket shoppers. They are always looking for a good deal and can tend to be the ones who stay on the lookout for great deals. Chances are if you make a mistake and price your auction too low or forget the reserve, they will be there to snap it up. Sometimes with Yahoo and Ebay, people come there to specifically get a good deal. If you understand that, you can make it work for you. I love getting a deal, I also love giving one. Especially if it builds some kind of loyalty and repeat business.
The Economy Store
A great example of this is our local economy store. It really is like a giant garage sale or thrift store. This place receives a ton of donated items such as clothes, toys, furniture, and appliances. Basically they go through the items, throw out the junk, and place the rest up for sale. The money goes to take care of the poor. What a cranking place, I love going there. I got to know the owner a bit and one day he seemed bewildered. He had some higher quality (and higher priced) furniture in his store but not selling it. Along with it he had tremendous amounts of low priced stuff. Most of his furniture was decent quality but needed some elbow grease. These items are not moving he said. It is very good stuff and in perfect working order.
The reason he was having problems selling it was his target market was the low-income bracket and he had some items in the upper middle class targets. Now granted once in awhile a bargain hunter or furniture restorer comes along and finds the gem, but these people are not his active target. To make a long story short, make it easier on yourself until you become an expert in demographics and pulling in the right audience and take aim on one income level.
Now I told you all that so I can tell you this. The rules change. One night while in the Salvation Army (hey I like a bargain) I was approached by a news crew requesting to tape our family shopping. The woman said that during the tough times after 9-11, all different income levels start
shopping at the Salvation Army. Slowly, the persona and stigma of thrift store shopping is changing and becoming more acceptable.
Don’t be confused; I added this for a reason. Your competition (sellers) still sells a certain type of product aimed at a target income level (buyers). Use that information to make your determinations and remember that things can always change. The study of economics rarely changes; the rules
of supply and demand are still somewhat constant but can become elastic. (man that was deep, my economics professor would have been proud!)
Representation
One last thought on the subject. If you’re going to aim a bit higher, say the upper middle to high class, you need to represent yourself well. How you represent yourself gives you some credibility.
You will need business cards, professional email address, maybe even a website. A good friend of mine is in Real Estate. I asked him why he drove a nice Cadillac instead of the sportier cars I was use to seeing him in. He said that you have to have the right tools to play the game. The more professional you look the more at ease your customers will feel dealing with you. Remember, doing business on the Internet is still risky business for some people. It has not really been around all that long to develop a long and healthy reputation.
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