What’s the most common lament heard from the lips of the average consumer today? “Same old. Same old.” The same chain restaurants, the same labels on our clothes, the same furniture design and the list goes on. Add a decline in customer service and product quality into this pot of emotional flatness.
And what boils up?Golden opportunities rise to the surface for the entrepreneur or business owner to develop their own unique product.
The profit potential can be terrific because costs are so low for the craftsperson. There is no manufacturer to pay and the materials are usually very inexpensive. However, these items are costly in terms of time which is why they can often command very high prices. Anyone involved in this end of the business must truly be passionate about what they are doing.
There are literally hundreds, probably thousands, of wonderful items on the auctions every day. We could have an entire series of books just on products and ideas. However, to keep this chapter within reasonable bounds I have chosen examples that demonstrate certain principles to follow in choosing items to create and to buy.
One of the most powerful profit-producing principles is to minimize circumstances that are beyond your control. The best way to do this is through exclusivity. Whenever possible, own the product you are selling. We’re not just talking about the possession of an object. We’re talking about owning the rights to a design, an intellectual property, or an invention.
One powerful way to do that is to create your product yourself...1) Use what Nature has provided for free -- An enterprising jewelrymaker picks up stones on the beach and makes jewelry out of them. While her actual jewelry supplies may have a minimal cost, obviously the stones do not. This is almost total profit and a great example of creativity and ingenuity using what nature provides.
2) Turn ideas into profit -- Need some type of spark to get your neurons firing? Make way for your own personal switchboard for idea generation…Niche Idea #1
One enterprising lady named Priscilla turned a nuisance into a profit center. In her backyard there were many kumquat trees planted by a former owner. These trees produced huge amounts of these tiny fruits and the current owner couldn’t begin to use it all. In fact, the fruit fell to the ground, rotted and attracted all sorts of critters who also ate her other plants.
Unlike some grocery store produce, her kumquat fruit is very sweet with never a trace of bitterness. Mostly out of curiosity, she bought some inexpensive baskets and filled them with her fruit, and listed them on eBay. To her surprise, this liability sold for very high prices. She guaranteed the sweetness and sold everything she had, making several thousand dollars in profits. This season, she plans to enlarge her product line by adding other items such as kumquat muffins and jam.
It must be noted that already-prepared food that isn’t packaged in a factory is relatively rare. But exceptions can be found. Quality, freshness and great packaging are essential in you decide to go this route.
The disadvantage to Priscilla’s kind of product is that it is so seasonal. If Priscilla decides she wants a year-round business, she is going to have to expand what she does. It wouldn’t be hard, however, to create a reputation as the “Kumquat Lady.” Creating a niche in the market is the best way to build an Internet business... or any other kind of small business for that matter.
Priscilla could branch out with recipes, jams, cakes, gardening advice, a column in a magazine, a cookbook and more. She could promote all these items on a Web site.
Site Build It! (http://auctions.sitesell.com/) makes it easy to create a traffic-generating, sales-producing Web site, regardless of experience or technical knowledge.
Niche Idea #2An avid gardener in Atlanta grows attractive and popular flowers called impatiens. But hers are unusual because they re-seed themselves. Nurseries prefer to create plants that do not re-seed themselves so that they must be purchased again each year. (From the nurseries, of course.) In fact, it is virtually impossible to find these plants in the usual garden stores.
This lovely lady had an ad in a small gardening magazine and decided to try out an Internet auction. They were an immediate hit and she could have sold many, many more. It was the beginning of an auction obsession with her. Since then this entrepreneur has sold countless numbers of plants.
This is a perfect example of the power of the Internet auction. She has made tons of new friends, from as far away as Japan, and acquired many new plants. She now spends almost as much time on her computer as in her garden!
When plotting and scheming for your business, pay attention to the ideas that surround you. Borrow from other businesses. For example, Book of the Month Club, Literary Guild, all the CD and tape clubs, have made zillions of dollars providing such services. Why not offer one yourself?
Niche Idea #3Four teachers in Indiana all quit their jobs within a few months of each other because they wanted to stay home with their young children. They formed a social group and remained friends for about three years before they decided they wanted to make some extra money.
It took them a few months of trying and discarding ideas before they decided they wanted to focus on the idea of creating outdoor rooms. Warm months in Indiana are very precious so they decided to capitalize locally on the mania for outdoor living. Their first products were garden stakes made of metal. Some have glass inserts as sun catchers and other have holders that provide space for a candle. The stakes all add to…
… the beauty of the surrounding nature. They were so successful that they slowly added other products, such as outdoor furniture, umbrellas and plant holders.
However, they live in a tiny town and felt the market was becoming saturated. Much of their merchandise was too heavy to haul to flea markets so they had to settle for photographs. Folks in their area were suspicious of buying from pictures and the method didn’t work all that well. In addition, the flea markets are most popular on weekends and this was against the ethics of the group. After all, the reason they quit a regular job was to be with their families! If they were gone all weekend, they were defeating their purpose.
So for these ladies, the auctions are a godsend. One of the greatest advantages of an auction is that you don’t have to be there to sell! And for folks who value weekends and family time, auctions are awesome!
Niche Idea #4One clever entrepreneur made a lot of money by duplicating an old collectible. He spotted a picture of the famous old flag, “Don’t Tread on Me” in a history book and had it copied. The print was from 1800’s so therefore it had no copyright. It is possible to find thousands of old books with this kind of material. Look around you and see what people are buying. How can you cash in on these trends?
Niche Idea #5Pets and their paraphernalia are big business. Here are some products that have sold very well on an auction site…
• A book that tells which motels will allow you to bring your pets
• Products from dog biscuit bakeries
• “Catsumer Reports” magazine
Niche Idea #6
Ah! Summertime and the living…
… is e-a-ssssss-y! Craig, Bill and Colin make hammocks -beautiful, sturdy and artistically pleasing hammocks. They do brisk sales on eBay and other sites. However, their business is very representative of a particular problem... what to do in the “off-season”? After all, not too many people in Maine are interested in hammocks in January. These three do such a great business that they are busy all winter making their incredible hammocks. Not all sellers aren’t that fortunate.
If you choose a seasonal product, think about what you can sell in your “off” season. Perhaps you can design pre-fab kits for the do-it-yourselfer who likes a basement project during down time.
A trio of sisters does a thriving business in blankets, especially quilts. They are so prolific that they can create a quilt in as little as four days -- one that will sell for $300-$400+. They have been in this business for a long time. Even though they have already given quilts to friends and family members, their inventory was still occupying every available space. Their only sale outlet was the traditional craft show or flea market.
None of them wanted to spend their weekends at these events so they were thrilled when they learned of Internet auctions. They also welcomed the extra money since they are all live on small retirement incomes. (This is another power of the Net auctions. Senior citizen, at-home caregiver, disabled -- it doesn’t matter what your personal situation entails. Anyone can participate and do well.)
These retirees were able to take a trip to Scotland and Ireland last summer to learn...
... new quilt and blanket patterns, compliments of their eBay auction money.Niche Idea #8
Tommy and George are good friends who make and sell kitchen carts. They have different sizes, styles and materials to choose from and the carts sell for high prices because they are so well done. They used the sales they generated from eBay to expand into catalogs and specialty stores.
George’s wife Sharon really understands marketing. When they ship a cart, it always contains an unadvertised bonus that the customer didn’t expect. The two randomly include such items as recipes for seasonal dishes, a high quality or unusual kitchen tool, gift certificates for coffee or baked goods, beautiful paper napkins or packages of bread mixes. Since they don’t mention these items in their ads, the customer is always delighted.
Keep an eye out for specials. They make great bonuses that you can include with your merchandise and they cost you little or nothing. This is a very powerful marketing technique for developing customer loyalty. Two potters in North Carolina are masters of their craft. They create really beautiful flowerpots, vases, pitchers, mugs and plates. The two enlist their wives as painters and the delicacy these women achieve is astounding. The potters decided to avoid the overhead of a regular retail store so they were peddling their goods at flea markets and other such places.
You guessed the solution. Net auctions! They are thrilled that they don’t have to pack and lug around heavy boxes loaded with heavy pottery. They celebrate the fact that they can spend more time making pottery and less time selling.
Niche Idea #10Glenda Kay and Ray know that personalization pays off. They sell items for kids. They don’t actually create the basic products themselves. Instead, they buy very inexpensive unfinished items and add their own touches and personalization. They can create more product in a shorter time that way. For example, they buy the headboards as a very stripped-down, basic model and do the padding themselves. They can buy a twin headboard for as little as $17 and the finished product, depending on what the customer wants, may sell for as much as $350.
The key point is to make your operation/business as efficient as possible. And remember to factor in time as an expense.Niche Idea #11
Jennifer is enchanted with the sound of running water and she sells small, indoor fountains. She is noteworthy, however, because she illustrates an income-boosting principle -- offer different buying options to your customer.
Jennifer sells her product in two ways -- ready-made or by kit (for the more price-conscious shopper). She starts the bidding on the kits as low as $2, knowing the price won’t stay that low. The more expensive versions are readymade.
This seller has many different styles and materials so the prices vary widely. She experimented with Dutch auctions and single item auctions and decided that she makes more money by selling one at a time. Therefore, she sells on many different sites at the same time. She doesn’t want to saturate her market. She also enjoys the give and take of flea markets and bazaars and continues to market her fountains there.
Martha and Warren were frustrated avid gardeners. Gardening in Mississippi in the sultry summers is a genuine challenge. The weeds love the hot, moist days, too. Martha grumbled constantly about how much her back and knees hurt, when she’s down on the ground yanking out stubborn weeds. So they decided to use…
…raised beds.
Over the winter months, they designed their own particular plans for beds that would be more than a foot off the ground, making the entire process much easier. They made these for themselves with no thought of creating any business opportunity. But everyone who came to see their extensive gardens was so impressed that they decided to market their idea. They now have a full line of products including planters, window boxes and books that show how to use their products and grow great plants.
As the saying goes… Necessity is often the mother of invention.Niche Idea #13
Brothers, Ross and Ralph, would get along great with Martha and Warren because they are crazed gardeners, too. They were unhappy with the edging materials that go around the outside of flower beds. Their problem was that they didn’t want their yards to look just like everyone else’s. So they created their own edging.
Like Martha and Warren, so many people wanted their edging that they began selling it. Their edging is so classy compared to what can be bought at the chain stores. Their materials are varied -- rocks, plastic, metal, concrete and wood. The customer can choose among various standard designs, or for an extra price, they can create their own.
The brothers profit by knowing one marketing fact... there are many people who will pay premium prices for products that are different. Their customers’ yards are not like “the neighbour’s”.
Niche Idea #14Can you imagine paying a couple of hundred dollars for a kite? Some highflying collectors do just that…
… willingly and happily!
Blake has had a life-time love affair with kites. Even as a child, he began creating his own, with torn-up rags for tails. He laughs when he describes his early experiments and how bad they were. By his twenties, he was flying incredible dragons, birds, and a gold Phoenix. He even invented ones that had several birds attached with cords so that it appeared that an entire flock was sailing gracefully overhead.
When he flew his kites on weekends, crowds would gather to watch the incredible contraptions. So many people asked for his kites that he began giving serious thought to a kite business. He decided that he would give the auction sites a try with one of his kites. He began the bidding at $20 and it sold for $186.70!
He was so shocked that he decided to sell on a permanent basis. He now makes more money selling kites than he makes at his job. His wife Gwen is a graphic designer. She has created a gorgeous brochure that he includes with every kite. It is filled with details the history of kites as well as teaching how to fly one.
This is a great example of a targeted niche. Based on your experience or hobby, what type of product could you create that would capture the attention of other like-minded folks?
Niche Idea #15As a child, Lewis had a heart condition that prevented him from most physical activity so he became interested in music -- specifically, the dulcimer, a very uncommon musical instrument these days. It seemed inevitable that he would someday begin to make his own. Soon he had so many that he could never, ever, play them all. He tried giving them away but there were very few people in his small town who were interested.
He finally set up a booth at an annual Labor Day craft fair near Atlanta, and began to find people who might be interested in his passion. But sales were still slow. When the Internet came into his life, he found interested people online and began selling to some of them. And then when the auctions came along, he was jubilant and became an early seller. He now has a thriving business as a full-time instrument maker and often plays for audiences to further promote his business.
The Internet is a perfect venue for someone like Lewis who was unable to find people with the same passion in his own small pond. The Net auctions open up the world and Lewis has sold many of his instruments in eastern European countries.
What’s the take-home message? Uniqueness is the result of thinking “outsidethe-box.” Examine what you do and use daily. Is there a potential product or service that you could create and auction?
