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84 Flyers = $164 profit in 3 hours

Discussion in 'Offline Marketing' started by Sampler, Mar 16, 2012.

  1. Sampler

    Sampler Senior Member

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    This money/method came from inspiration seen in 7878's thread "22 Letters = $17,000 profit in 3 weeks."

    As much as I would have loved to have duplicated his success following what he set out, I know my limitations and know what I am good at and as a result didn't want to touch ORM. In the past I've done things in terms of SEO and Social Media so I thought I would be more comfortable doing something like that. However, as much as I felt competent being able to create good services in this niche I wanted to do something that I hadn't really seen a lot of people do in real life i.e. I see web design and seo advertising everywhere. What I ended up deciding on was selling custom designed iPhone cases.

    This idea came to me a few days back and since then I've had my hand half in the cookie jar seeing how plausible a business this could turn out to be. Here I thought about and explored, costs i.e. finding a supplier who could do what I needed and a general business model. I essentially narrowed it down to two options. I also brainstormed potential business names and found a domain name of one I liked and purchased it.

    1. Sell my own designs via my own online store
    2. Sell bulk cases for cheaper phones to other businesses

    There are pro's and con's to both and essentially while I definitely will go down the first path, to get some initial cash flowing and to test out the viability of actually getting cases sold, I chose to go with my #2 plan.

    What I did this morning was pretty simple. It is/was a Friday and wet so I wasn't sure if I was going to get any results but I'm glad I put it into action.

    -1. Domain name from three days ago cost = $8

    0. Ordered a sample case from supplier with express shipping 3 days ago got the sample last night cost = $10

    1. Went to a phone store and bought a prepaid mobile phone cost = $22

    2. Designed/printed a flyer. Actually found one off the web and modified it. Kept the design really simply with a large picture and then a smaller price and contact number. Got these printed at officeworks. cost = $6

    Total Costs = $46


    I was able to get 84 colour flyers for $6 because I used pretty standard paper and printed multiple flyers on one page. Initially I had 2x per a4 page but ended up liking a smaller version which was slighlty larger than a business card which helped reduce my costs.

    [​IMG]

    What I did next was drive around some busy streets and trainstations for about 1hour and a half, and stuck this business card type flyers around the place. I looked for places which were undercover due to the rain and where lots of people would look i.e. exit/entires to trainstations and tramstops were where I put the majority of them.

    About an hour after I got back to my house. I found I had a missed call on my new prepaid phone. Generally I have my phone on me, but because this is a new phone the battery was pretty much dead so I had to have it on charge. I thought this was going to be an opportunity lost but decided to give the person a call back anyway, the good thing was that I had just missed the caller by a bit less than 10 minutes so I was hoping that it was still fresh in their mind. Speaking to the person on the phone I could tell they were keen and it was exactly my target market, small-medium business owner. When I was making the flyers because they are pretty minimalist in design I was/am hoping that I don't get a bunch of kids calling me.

    Nevertheless, I was somewhat surprised at my ability to close my first client in the niche. I still think it was somewhat luck or just the fact that there actually is a market for this kind of product. In terms of sales I was able to "sell" 50 cases for $7 each totalling revenue of = $350.

    The reason I say "sell" is because it's a friday and I haven't got the money in my bank account just yet as that will be done on a monday. That said he has given me his logo already which shows that he is somewhat committed to purchasing.

    So in total.

    Revenue = $350
    Less COGS = ($140)
    Gross Profit = $210
    Less Other Exp = ($ 46)
    Net Profit = $164

    Looking at that I feel confident. Not only should the expenses be slightly less next time as I don't need to buy phones or anything, but this was within 3hours of my putting up flyers. My only worry is that cleaning staff or workers at the stations and shops where I put the flyers up just tear them down. However, my goal at the moment is to get a few more of these up, lower the costs of production, get a client list, then go to some bigger companies and potentially even work out a proper licensing agreement to sell cases with their logo on it. I'll also look at setting up an online store where I'll sell some of my own designs.

    Anyway, I hope you enjoyed reading this and remember, like I used 7878's thread in some respect, you've essentially got to take action in something that YOU THINK YOU CAN DO, recognize SOME limitations but ultimatly have a go and you might be surprised. Which leaves me with one of the quotes which my friends are sick of hearing which is

    - Wayne Gretzky

    Sampler
     
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  2. xxf8xx

    xxf8xx Supreme Member

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    Thanks man. I really want to try out a flyer method but was thinking of just doing the typical cpa offer type thing and putting them around town and on windshields. I'll hopefully get around to it soon. I've also been putting 7878's ORM method into action and have had one meeting so far. Sending out another batch of letters soon though.

    Cheers to your success,
    xxf8xx
     
  3. mrtwister_65

    mrtwister_65 Regular Member

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    Can you be more specific about design implementation part? Do you screen print the cases? Do you do it yourself at home? How much money is left per case after all costs?

    I like your "hands-on" approach. As I said in another thread, there's a lots of money to be made in real world promo business.
     
  4. Sampler

    Sampler Senior Member

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    Found a supplier who can do both screen printing and waterjet/or something which they reckon is better quality if you want to print things like photos. Per case is some simple math which is why I created a gross profit i.e. case revenue = $350 (for 50 cases like I said in OP) which is $7 a case. Less cost of sales which is essentially all stock +delivery = $140 (which for 50 cases = $2.8 per case).

    $7 - $2.8 = $4.2 per case variable profit
     
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  5. skillz

    skillz Newbie

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    Wow. It's crazy because I just seen a US rapper selling one for 24.99 with his logo on them. TMC (The Marathon Continues) http://twitpic.com/8oui9i. He's selling 1000 and with his 200k+ followers I see an easy $25,000 revenue. If you don't mind could you PM me your supplier.
     
  6. johndoejohndoe

    johndoejohndoe Junior Member

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    I think your pricing is off. Kids would pay more than the $7 you offer. Small to medium business owners would probably pay more than twice that? A big part of selling is over-pricing then giving a 'discount'. I would think most people have no idea what this would cost otherwise, test your limits.
     
    Last edited: Mar 16, 2012
  7. skillz

    skillz Newbie

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    I agree. I'm a pretty cheap individual and I seriously thought about buying that 24.99 case to support & the message he delivers. If you got one for $10 w/ expedited shipping that's 100%+ markup.
     
  8. procam

    procam Senior Member

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    Dude, that's awesome! That makes me want to do some offline marketing as well.
     
  9. MyCrazyWorld

    MyCrazyWorld Registered Member

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    You could create a specific case and give a set % of the profits to a charity. Lik a pink one for breast cancer. Sell them for 24.99 shipped each. Get some facebook and twitter accounts and start a social media campaign about it and hopefully after a kickstart it will go viral itself.
     
  10. Sampler

    Sampler Senior Member

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    Here's where I am at now in terms of price.

    On my flyer, I say "from $7/piece" which means that I do have the chance to increase my pricing. What I'm looking at is getting into real sales i.e. 10,000unites+ a month. To get a number like this I need big brands coming to me, such brands aren't going to want to pay me $20/case because that's closer to the retail value. I'm essentially going to try and sell them where not only I can generate a profit, but where these companies (while I did say in OP i'm targeting small-medium business, my longer term goal is larger brands) are able to put these in big online stores and shopping chains at a wholesale price
    i.e. i sell them to brands/companies for $7, they then sell them to shopping chains who then sell them for $20+ it's real life business just think of things like coke, the supermarket probably buys it for half of what you pay because they are trying to make money as well as coke.

    Secondly, however, I'm not targeting kids atm and understand that they would pay more. I'd obviously increase the price should this become the direction I wish to go in.


    Currently though, looking to set up a sustainable business where by my aim is to sell about 400 cases this month which would be enough to execute a better sales/marketing campaign to launch this into bigger companies that require 400 cases/month on a regular basis.


    Again this comes back to my OP. Recognise your limitations, I've never really worked in retail before and don't want to get over my head to quickly. Start small and start well as opposed to being too aggressive and losing everything.

    QUOTE=MyCrazyWorld;3997031]You could create a specific case and give a set % of the profits to a charity. Lik a pink one for breast cancer. Sell them for 24.99 shipped each. Get some facebook and twitter accounts and start a social media campaign about it and hopefully after a kickstart it will go viral itself.[/QUOTE]

    I've definitely thought about this and may go this route. The only problem is I need to be really careful with licensing agreements. That said this is definitely something I will look into further now as I have definitely thought of it + 100 other twists. I've just got to work out how do I build a brand for myself while sellling other peoples cases.
     
  11. johndoejohndoe

    johndoejohndoe Junior Member

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    It's definitely a good start, no doubt. I think the problem you might face is that almost anyone can do this. Quality and price is probably your main selling points but when it becomes over-saturated and you're competing with every other guy for a sale it might not be viable. It's good to see you've thought of twists and starting off small is definitely the way to go. Good luck.
     
  12. Sampler

    Sampler Senior Member

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    I agree. Most people could probably do this if they wanted to. Barriers to entry are low. That's why I've got to try and establish myself as a brand/the go to guy to get this kind of stuff done. It's like most things really even if you give somebody the information on how to do some, chances are they'll probably still end up paying you to do it. The hard part like you mentioned is, making sure they stick with you and don't go to someone else.
     
  13. ardley216

    ardley216 Elite Member

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    Very impressive. Gives me a whole host of twists to think about :)
     
  14. backontrack

    backontrack Power Member

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    Congrats! And a big good job too actually taking action! Scale up :D
     
  15. Sampler

    Sampler Senior Member

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    UPDATE: Recieved 4 phone calls today. Closed 1 for 75 cases.

    Profit = $360

    This guy owns a bunch of hardware stores which I thought was interesting but goes to show the demand for this kind of thing in any industry in terms of good promotion.

    What I might start doing is when they recieve the order I'll try and upsell them on SEO/local listings which could be some real $$
     
  16. ehinoze

    ehinoze Power Member

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    Op, I'll tell you this one peice of advice that would turn your business around IMO.
    Traffic is what you need, and heres how to get the most of it.
    Go to the colleges/universities, most of which have about 30k+ students.
    Paste it in the classes, hostel mirrors, hostel notice boards and school notice boards, and school gates.
    Go to Bookshops, and create a relationship, tell them to allow you put your fliers on the glass panels and large shelfs,
    do these 2 and 10,000+ unites per month should be really easy
     
  17. live1

    live1 Junior Member

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    Can your supplier handle your demand in the future? Nothing sucks more than getting a 1k units deal when your supplier can only deliver half...