Sunday, February 5, 2012

Building Systems — General Philosophy

by Admin on April 10, 2009

Sign Example

We are going to look at two different approaches to self manufacturing.  We will use signs as an example to show you to different styles.  We will use the “typical” small view example as someone who does not think “big” and then the “System approach”.  The system approach is used after you determine some designs that are popular and will sell.  You do not have to get hung up on the fact that some might not sell, if you do your marketing properly, you will sell them or you can easily move them by using some Ebay auctions.

Typical Approach

This approach shows a small scale mentality.  Although it seems good, its not a wise use of time:

  1. Pick sign design
  2. Cut material
  3. Engrave
  4. Clean & finish
  5. Pick box & packaging
  6. Take pictures
  7. Market
  8. Ship

Now lets look at an advanced system approach which is where you want to go next.  Note:  You have determined 10 designs that you like and you either tested or feel good about according to research.

Plan 250 pieces of inventory (10 designs x 25 units each):

  1. 10 Designs
  2. Cut all material (250)
  3. Engrave all
  4. Clean and finish
  5. Box and label all
  6. Write master ad for each unit
  7. Insert each ad in website, eBay Store and eBay auction
  8. Promote all 10 designs with some good solid search engine optimization techniques
  9. Ship as ordered

So what’s the difference?  The systematic approach does not have the “will it sell” approach.  We know from research and demand that the product will move, price determines how fast.  Also note that we take time to cut all the material at one time and engrave all the material at one time.  This is a tremendous time savings since you can move more efficiently when you do one task at a time.

The automobile industry is a great example of this.  The assembly line concept has one man (or robot) doing one job with repetition.  That repetition insures quality and speed.  This is a good lesson.  When your are done with the whole task you move on to the next.  You will also notice that you box and label all the items at the same time which means you have to  re-order your boxes and labels before you start the process.

Writing the master ads is where you can really excel in your marketing effort.  Make them templates and follow a set style for each.  Come up with some good text that is not duplicate content from the others.  Think outside the box and be creative.

The best and most neglected part of the process is to manage the ads in a systematic approach.  Put those ads on your website so they have a “home”.  The insert them into your Ebay store, so that they are always available as well (another home).  Then use your auctions to promote your store offerings and keep a buzz going.  It’s important to have constant presence in order to move inventory.  If you use website only approach the concept is the same, it’s constant promotion.

Outsource

Last but not least you need to consider the fact that there are some shortcuts you can take when you develop a good demand for a particular design or product.  That would be to have the items made for you so you can increase inventory faster than you can keep up with yourself.  In this example you would find a local CNC engraver that is willing to take on your design in larger quantities.  Again this is in consideration to time and gives you more inventory faster.

  1. 10 Designs
  2. Order boxes and labels
  3. Order through another company per your design
  4. Receive and inspect
  5. Promote

As you can see there are less steps allowing you to shift your attention to more important matters yet you still are the manufacturer.

At some point in time you would next consider importing the item to cut costs.

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