Internet and Mail Order Business Opportunities 2
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Where do I find products to sell?
You can find the products anywhere. In some cases, you may actually manufacture the products yourself. Everything from gingerbread cookies to ink have been literally cooked up in entrepreneurs' kitchens and then marketed by mail.
Products you don't manufacture yourself can often be found in nearby warehouse outlets, manufacturing companies, from distributors, and advertised in trade magazines and in classified ads in newspapers like the Wall Street Journal or the New York Times. Industry trade shows are another excellent source of ideas for new products to sell If you know what you want to sell and can't locate a manufacturer or distributor, look up the product in The Thomas Register of North American Manufacturers (available at libraries or on the web at http://www.Thomasregister.com). Call the manufacturer and ask for names of distributors. Look in the public library for other directories of manufacturers as well.
How do you know what products will sell well?
The "secret" is to identify a market (group of people who share a common trait) and study that market closely on an ongoing basis to see what needs are unfulfilled or what trends are emerging. Wendy Lew is the buyer for The Golden Bear, a fine jewelry manufacturer and retailer that sells better ladies' clothing, home gifts, and jewelry from other fine jewelers as well as its own signature line of golden bear pendants. In addition to sales in its two retail stores, the company sells through a catalog, which it mails twice a year to 500,000 people, and through its web site at http://www.thegoldenbear.com.
The Golden Bear's typical customer is 40 years old or older. Wendy, keeps on top of trends by reading trade publications, other company's catalogs, and by attending trade shows. "I read Women's Wear Daily [WWD] for ideas on new trends, colors, and fabrics as well as for hints about what's going to be happening next season," she says. "I attend shows such as the Coterie, Style Industry, FAE, Boutique Show, and the New York Gift Show, and pay attention to fashion magazines such as Elle, Vogue, and In Style. I also shop the big guys like Bergdorf's, Saks, Neiman's, Bloomingdale's, and Barney's to see what they have going on."
How do I determine what to charge?
This is where your research comes in. You should have a pretty good fix on how much your customers are willing to pay for the convenience of getting the goods you want to sell through the mail. You should also know what all your expenses will be to advertise, purchase, and deliver that product. While many people in mail order say you should sell merchandise for at least four times what it costs you to buy or produce it, the actual amount depends more on what the market will bear. In some instances, you may only be able to mark up a product 50 percent, but if you can sell it in quantity to customers who will make many repeat purchases, that markup may be sufficient for profit. With other types of products you may be able to mark up your prices tenfold because your costs are extremely low and/or people can't get what you sell any other way.
What kind of catalog do I need? Does it have to be in color?
The type of catalog you need will depend on your product. If the products are items people are familiar with or that can be described adequately in a few words or sentences, a neat list of items, perhaps with a few simple drawings included to break up the gray look of the type, may be all that's needed. If you are selling clothing or anything that people normally want to see up close before ordering, you will need photographs in your catalog. If people are going to want to see the color of your product, you will need color photos in your catalog, which will add considerably to your printing costs.
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