rise2it - 9:35 pm on Feb 14, 2010 (gmt 0)
"I'm certain that the majority of online stores that sell this product for more than my price are buying it for the same price, or close to it. I'm simply willing to make less profit.
Why? Because I'm the new kid on the block. All things being equal, would you be more likely to buy from a big established online store than a relatively new and unknown store?
Once I get my store better known, I can consider slowly raising prices."
That is the WRONG approach on so many levels I don't know where to begin.
So, let's make it simple...if you don't like the rules, take your marbles and go home. In other words, find another product to sell.
We're in business for one reason - to make money...and personally, If I can sell 100 of something and make as much as someone else selling 300 of the same thing, I'm quite happy - because I KNOW the other company is going to have more at least 3x the returns to deal with, the other company is going to have more at least 3x more packages lost in transit, and at least 3x the headaches that I have...and those cut into his profits, so he's STILL not going to be making what I make at the end of the day.
As far as MAP pricing, I no longer pick up high end products unless they DO have map pricing, and the manufacturer is actually willing to take the time to go after those that fail to comply.
If the only thing you have to compete on is 'lowest price', you'll either be nothing but a memory in a couple of years, or survive but be completely miserable because the only customers YOU have are the ones that the rest of us don't really want (whiny, disloyal, etc).