PART 2: Core Product Concepts
Product Selection Criteria
Now, let’s define your product selection criteria. And here they are:
Your future product has to have a high Profit Margin, at least 50-100%.
The ticket price has to be at least $50-200 because if it’s too cheap and is commoditized, there is no barrier to entry.
The product has to a non-compliant product. You do not need any certification for it, not food certification, not houses certification, not electrical certification. If you can help it to begin with, high “Barrier to Entry.”
A Barrier to Entry
Let me explain. If you are in the market selling your iPhone covers or your Galaxy covers, then every person, every man and their dog, are selling the darn cover so they compete with each other on the price. On top of this - anyone can put $100 to get these covers and sell ‘em on eBay or other online market, right?
On the other hand - if you sell the diesel power generators, that are engines! The cost of the item would be thousands, right? And because it’s an engine -not everyone can enter this niche, as potentially it can cause a lot of headaches with parts, breakages, repairs, returns, etc. That’s what is constitutes a barrier to entry.
Suggest you remember this simple rule:
“S/he who prepared to deal with headaches – makes success!”
Here’s the ‘bonus’ rule J for you to remember and practice:
“S/he who prepared to tenaciously study and practice the skill of finding and selling trending products – will prevail in online selling business”
Make sure that your item has somewhat a barrier to entry so you’re not competing with the majority of market entrants.
Bulky versus light product. This will determine whether or not you can ship it by air or by sea. Compare feather duvets vs. led batteries; toilet paper packs vs. memory microchips. You got the idea!
Storage requirements. Do you need TCD (Temperature Controlled Delivery) and storage? Do you need special equipment to transport, preserve, and ship it? Obviously, the less of specialty required, the easier it is to deal with the product.
Potential to expand the niche. Can you add other complementary products to expand your niche and sell more of different SKUs to it? So, very important. And finally, prefabricating versus creating your own. So when you start in selling online, make sure you focus on something that already exists. You don’t want to go and create your own products, spend time and money, unless you fully capitalized (i.e. have money of your own to pay for the product). And once you build enough capital, then of course, you can create your own product once your main business producing the cash, right?
3 “P’s” of Product Selling Platform
First, you need a traffic platform, how you’re going to attract the traffic to your website.
Next, you need to have a conversion platform or sales platform, how to convert your traffic into sales. Then you want to ask yourself what is hot product right now and that’s the subject of our training today of course. So the product platform, and that is product research platform which we’re covering today. What’s the lowest cost, most effective way to find the product and deliver it to your prospective customers.
The Product Lifecycle which I did touch briefly in the pre-training videos, if you missed them – here’s the recap, otherwise you can always review the latest training videos on our YouTube channel. Here it is.
Now, product typically starts by trending. So the demand is high and growing whilst the supply is limited. The volume of the sales can grow exponentially.
Then it’s flattening – the market is getting saturated with supply, more and more competitors coming into play, the demand is still strong, but competition started to drive price wars.
Finally –the decline. The question you should be asking yourself when you make a decision to start selling a product online or offline:“Where in the lifecycle the product is?
Is it in Trending stage, which will allow you to sell more and make good money?
Is it in the Plateau stage, and there’s nothing wrong with that for as long as it is not at the end of the flattening stage or Plateau?
And finally, if it is in Decline stage in your current local market, then obviously, you don’t want to touch this product. This consideration will be a cornerstone of your product selection criteria.
Now, you need to understand the time lag so the same pattern: the same trending, flattening, and decline curve happening in a different markets. And some markets are more advanced than your local market. For example, the products that are trending in Australia or New Zealand could be already in decline in more advanced market like Japan, Europe, or United States. Or the products that are in decline in Japan, might just start trending in United States. Or the products that are ‘flattening’ in Europe, just started to trend in Singapore. And so on… The point is – never underestimate the significance of TPD (trend – plateau – decline) pattern, when choosing your next product to sell.
So, you need to look at what’s trending in more advanced market, more advanced in terms of the speed of product adoption and identify the trends there, bring it to your local country, and start selling in your market and you might well be a trendsetter. Very important to understand this concept. Does this make sense? I certainly hope so.
Yours for finding hot products success,
Creator of RPR Method