Day 9: Strategy on getting the products ready.
In our previous post HERE , we worked on fixing a Selling strategy. And we also pinned down an USP for the products. Now since we have decided on the category of products to sell & also the Sales methodology, next lets look at how to get the products ready :)
Ok. When it comes to Physical products, getting it ready is a challenge. We would need to freeze one of the 2 options:
- Manufacture it.
PRO: You can keep price in control, You can have quality in control.
CON: Manufacturing is not a simple process, Capital intensive, You would need to find a good manufacturer.
- Procure it.
PRO: Risk free, lot of options available, You can Buy on demand
CON: You would need to do your pricing based on the procurement rate, Finding a reliable vendor.
Out of the above 2 options, I choose Procuring. The key reasons being:
- Does not involve high capital. I can order quantities in small numbers ( ie. 1000’s ) and place more order as the current inventory is sold out.
- I can speak to a lot many vendors, check samples and bargain.
- The most important factor being, if I try to manufacture it… I would be stuck with it. If I can procure different quantities of inventory in different qualities ( eg: thin cases, rubber cases, protective cases etc. ), I can experiment on which type of cases people buy and pivot my procurement in that direction. Once I have a good feel of the market and sales picks I can innovate and manufacture then.
One of the best destinations to procure from is CHINA. Took a weeks time and did some deep research on the various vendors providing different type of phone cases. Contacted the POC from each company and spoke in detail to them. Listed down Chinese providers who allowed the best Minimum Order Quantity ( MOQ ).
Even before ordering iPhone 7 cases, I really needed to test the market with some fast moving Android phone cases. While looking around for an Android phone case to order, heard the news that Mi Max is getting launched in a couple of countries and there seemed to be high demand for these phones ( the first open sale in Amazon a couple of weeks back got sold out in 4 minutes! ). Soon they will be opening sale again. Also did a bit of Keyword research and found the search reaching 500+ p.m for a combination of keywords like: Mi Max phone cases, Mi Max phone cover, Xiaomi phone cases etc.
Good. So I freezed a Chinese company, got all questions cleared and ordered 1000 Mi Max cases ( in 4 different colors: Gold, Black, Gray, Red ).
- Each case costed .50 cents. The shipping costs .50 cents per case.
- Would take 1 week to reach my place ( after customs clearing )
Check out the next Topic: Fixing the Pricing Strategy