Archives for August 2017

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#neverstoplearning: what is your meatball?

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Happy Monday!

What is the “meatball” of your business? When you look at your product offerings, can you identify what’s driving your business?

Identifying your product assortment and merchandising is key to establishing success and maintaining growth within your business. The best way to begin to distinguish yourself within the marketplace is to answer these questions:

    • How would you describe your product?
    • What is that you do? Can you describe it in 1-2 sentences in a way that is clear and original?

For example, when I was beginning to develop my business plan for Pink Olive I wrote a mission statement that expressed exactly the kind of experience I wanted my customers to have — Pink Olive is a whimsical boutique created to inspire giving and beautiful living. Our mission is to make the gifting experience super fun, easy and attainable for little ones to loved ones. This core mission of feeling loved is at the heart of everything that we do and reflects in the product assortment. Every buying decision directly reflects the core mission of my business.

In much the same way, you can also use the same concept when developing your line of products. Once you establish a unique product mix that genuinely reflects your mission, you can start building on those layers that make sense for your business. Let’s now break it down.

Your “meatball” should represent about 50% of your business. Think about what products are currently driving your business. What are those “no brainer” items that you can sell all day long.

Once you know what the “meatball” of your business is you can think about about some opportunity product items. These products should represent about 30% of your business. Think about what you would like to introduce to your line based on selling and feedback from customers. Your goal should be to make opportunity products into your “meatball” business within 1-2 seasons.

Lastly, think about your “icing.” These products should represent about 20% of your business. Think about items that may not result in much sales BUT are great attention grabbers or press generators. Every line needs a few WOW items that may not always sell as fast, but help create a buzz and sell the other amazing products on your line.

Are you ready to tackle Monday?

Here’s to creating a business you love.

xoxo,

 

 

 

 

P.S. Are you looking to take your product business to new levels in the next 6-months or just want my eyes on your business to ask all your burning questions? I’m opening up two spots to my popular “Critique My Line” private strategy session — sign up here and let’s get started!

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#neverstoplearning: pricing for profit

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Happy Monday!

Today, I want to talk about pricing for profit. Often when I meet with new entrepreneurs, I find they are not pricing their products at the ideal price — meaning one that guarantees a real profit! I have to remind them that you don’t always have to lower a price-point to beat out competition. Pricing combines a number of variables, not just competition. Some of the most important are market value and value proposition. If your price is higher, but you can justify it through creative brand positioning, you won’t have a problem selling.

Now, let’s get down to the formulas:

(Cost of Materials, Labor, Packaging and Shipping) *2.2 = A (wholesale price)

A *2.2 = B (retail price)

If you have plans to sell wholesale in the future, I would recommend doing this exercise to see where your numbers roll in at the wholesale and retail price. Then, massage the numbers so they make sense.

After, I would encourage you to create a linesheet that will make the buying process easy for retail buyers. This linesheet should have all the information a buyer needs to place an order. The easier you make it for a buyer to purchase your line, the better chances of getting an order!

For those of you looking for more assistance in pricing for profit, I recommend my Retail Recipes e-workbook. It’s full of many more tips on how to successful price your products and create those all important line sheets. Check it out here.

Cheers!

xoxo,