The Product Research Strategy That Will Make You Six-Figures Per Product
My first product was a success. I'm pretty sure that was just luck.
My second product, a watermelon slicer, was a TOTAL FAILURE. And here's why...
I MADE THE MISTAKE OF GOING FOR VOLUME OVER GROSS
What does that mean?
In other words, I was looking for products that sold a high number of units per month regardless of the gross profits that those products were making.
The Watermelon Slicer Horror Story
When I first discovered the watermelon slicer, I noticed that the product's top sellers were selling 1000-1500 units per month at $17 a piece. That sounded pretty amazing to me!
I found a supplier in China selling them for $3 each, so I ordered 1000 units the product for roughly $3000.
When I sourced the slicers, there were only a handful of sellers with this same product.
I wanted to rush to the market. So I didn't brand the product at all. It just came as it was in a white box. No logo, nothing.
By the time the slicers got here, there were suddenly over 200 more sellers offering the same exact product. UGGGHHH...
Then, the infamous "race-to-the-bottom" started. Sellers started pricing their slicers lower and lower to compete for sales. The slicers went from $17 to $16 to $14 to $11 all the way down to below $10 an item.
Let's do some quick Amazon math:
- My slicer is priced at $10 each (any less and it becomes an "add-on" item, meaning we can't sell it solo).
- Amazon fees are 15% plus $3.02 to ship it. So now I'm left with $5.48.
- I paid $3 each per slicer. Subtracting the cost-of-goods I've only got $2.48.
- My product debuted on the 20th page of the watermelon slicer listings. In order to get to the front of the listings, I'd have to spend money on advertising or give hundreds away.
- By the way, the cost-per-click on keyword "watermelon slicer" to get a front page slot was $5 per click.
So what happened?
- I decided to forego advertising and promotions. It was just too expensive to compete. So all of my sales came from organic.
- Organically, my slicers only sold 1-2 per week. At that rate, to sell through the slicers it would take 12 years to get through the entire set.
- One year of sales would bring in a super-shitty $201.24 in gross profit (and that's not including costs like long-term storage fees or returns).
- Dividing the original investment amount of $3000 into the annual gross profit, I'm left with a return of a weak 6.78%.
Moral of the story: I made at least THREE big mistakes.
- I didn't do enough research. Had I researched a bit more, I probably would have seen that the return-on-investment (even at 300 units) wasn't really worth it. These days, I've got a GAME CHANGING method of sourcing high ROI products.
- I didn't source the product right. I could have negotiated better and gotten the price down, and I could have found a product that was more unique (there were five other sellers with the same product). I've now become a master at sourcing products to not only get unique products, but save a ton of money.
- I didn't position the product properly. With no box design, no logo, and no brand to speak of, I couldn't get ahead of all the other products that looked just like mine. I couldn't price it right. And I couldn't avoid hijackers. I now have a KILLER strategy to brand products for maximum pricing and to avoid hijackers who'd try to copy my product.
Don't worry, this is EXACTLY what I'm offering to teach you...
So WTF changed?
- A kitchen knife that's brought me over $88,100 sales in less than 9 months. I only spent $3325 on the initial order.
- A golf accessory that's consistently made more than $2,500 in gross profit every month since I launched it. It only cost me $2454 to get into.
- Another high-end gift product that brings in more than $5,000 in sales each month... selling only 100 units per month. I started with only 300 units at $5 a piece.
Here's the stats on the next three products I launched:
There are over 500 watermelon slicers sitting in my garage to this day. I had to learn the hard way that volume isn't everything. There's a whole lot that goes into selling products on Amazon. Fortunately, I've learned my lesson.
THE PRIVATE LABEL PLAYBOOK: PREMIUM
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Here's some of my Best Strategies that earn me a six-figures plus income:
- The High-End Sales Strategy - how to turn any product into a high-end product for maximum gross and minimum risk.
- A/P = RPS - This is the little formula I use when I try to decide whether or not a product is worth it.
- Getting The Best Deals from Suppliers - I've got 7 Hacks that I use to cut down my initial product investment to increase my return-on-investment.
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SECOND: You get all the awesome tools I've created to help me accelerate my Amazon business.
Something you should know about me: I'm something of a spreadsheet nerd. In fact, I'm a MASTER at Excel. I've created 7 different sheets to help you:
- Organize your supplier data
- Determine whether or not a product is worth sourcing
- Keep track of samples
- Track your daily sales
- Determine the actual profitability of a product that you're selling
In addition to all of the tool sheets that you'll get, I've also created some HUGE SHORTCUTS to help you get things going faster. Check these out:
1,000 Product Ideas
I've done one of the hardest things for you already. I've hand-selected 1,000 different products that are all lightweight, non electric, and non-consumable, and put them in an easy-to-read infographic. All of these products, when combined with some of my powerful high-gross Amazon selling strategies are destined to make you a massive income.
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Facebook Ad Templates
If you've got a little extra cash to start your Amazon business, Facebook ads are the way to go, especially when combined with a squeeze page to capture leads. Not everyone is a great copywriter (myself included!), but I've contacted some of the best writers that I know to put these templates together.
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That's not all. In addition to the guides and tools I mentioned above, you'll also get:
- Product of the Day - Every day, I find a random item on Amazon, plug it into Jungle Scout, do research on Alibaba, and let you know whether or not it's a good product using my experience. I'll always advocate that you do some research yourself, but this will definitely help make things way easier for you!
- My Book Club - I'm a voracious reader. I believe that success only comes from self-directed learning. That's why I'm offering all of my subscribers only THE BEST books that I've read. There's no crap here, just the stuff that's helped me change and alter my life.
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- Amazon Update Reviews - Whenever Amazon changes something, you'll have me up and reporting on it in an instant. Sometimes, the big croc makes changes that we seller aren't crazy about, and it's best to stay informed by experienced sellers (whatever you do, DON'T go to the forums... those people are the worst).
- Dave's Daily Wisdom - Once per day (most days at least) I film a video with a piece of helpful information that I think can help you along your path. Am I wise? Probably not. But there's a few tricks that I use that help me get out of bed, deal with stress, and stay focused.
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You get volumes and volumes worth of actionable content
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You get a new video nearly every day and one 20-30 minute training video every month
(... dang, maybe $9.95 is too cheap?)
I'm not here to become a billionaire or even a millionaire with all this training. I'm just here to help people.
I've learned that when I'm working with other people, I get to learn more, try out new things, and see different perspectives. Plus, when my students launch their first product and contact me to tell me about it, well... I get a little choked up! *sniffle sniffle*
Real Private Label Playbook: Premium Members share the real benefits of working with Dave Hamrick
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