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Don't Undersell Yourself **Maximise your profits**

Discussion in 'Making Money' started by Windmill, Jun 24, 2011.

  1. Windmill

    Windmill Supreme Member

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    IM all the way.
    While I may be a baby to IM in comparison to many of you, I am no stranger to business. There are a lot of techniques I have learned which have helped me make a lot of money. One of these is to not undersell yourself.

    You can sell identical items to your competition, but for higher prices.

    To illustrate how this works, I am going to use a real-life example. When I was a kid, I used to play neopets.

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    There was this item on neopets called the lab map. If you got all 9 pieces of it, you could access the ?secret laboratory? which would change your pets color. Trust me, in the neopets world, that huge.

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    A completed lab map

    People would pay large amounts for lab map pieces. A completed lap map would go for 700,000np. Several of us figured out cheap ways to buy the lab map. Think of it like buying wholesale. We bought wholesale lab maps. We then resold them individually to the market place.

    We would put our items on the market place. We had very little way to differentiate yourself. This is what your ad looks like in the market place;

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    You got a tiny text box to advertise in. No html, nothing. About 200 characters max. Not only this, but your advertisements would literally be placed one after the other. Everyone could see that you were selling the exact same product as your competitor, but for 40,000np more.

    So, how then, when we are selling the exact same items, and respond just as fast to our sellers, could I sell mine for 740k and my competitors for 700k?

    Confidence.

    I acted confident. I was 11. But I would talk like I was a business. I would talk like I was an expert. I would act slightly aloof to give the appearance of not being desperate. I used understandable jargon sparingly. I showed confidence in my product.

    Even if your gig isn?t a business, if you act like a business, people will be more likely to pay a higher price. They will consider you trustworthy and so will pay more. This applies to all places; not just ebay, but places like fiverr too.


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    You can often offer less for the same price as your competitors if you act important. For instance; say you offer a scrapebox service. Your competitors might offer to blast 1000 blogs for $5. Well, you can offer to do 500 blogs for $5 and still get just as much business. How? By acting like you are an expert.

    If you act like you are an expert/professional business, then people will think; ?this business is offering to do 500 blogs instead of 1000. Because they?re a business, they must be more trustworthy. Plus, if they are only offering 500 blogs instead of 1000, they must be doing that because they think their 500 blogs are higher quality.? I am serious. This is an economic principle: people buy the cereal in the fancier, but smaller box for a higher price, because they assume that if a business is doing that their product must be superior! Take advantage.

    Real businesses use this technique

    Ever gone into a ?fancy? ?gourmet? supermarket? While they sell obscure products, they also often sell normal products too. Yet they charge more than your local supermarket. Why? Because they act important. They act like they are special. Are their products special? No! But they act like it. You need to act like your product deserves the higher price.

    When selling on ebay or the like, don?t undersell yourself.

    You can get more. Obviously don?t get greedy; try a higher price, see if you can get more. If not, reassess. Don?t start at the lowest point.

    There we go :D I hope people like the post. If they do I?ll post some more techniques; I?m thinking my next post could be on the importance of product differentiation over price competition.