A important part of launching your business and scaling it up is understanding your numbers. It’s easy to focus on the creative part of your business (usually because we are highly visual) and love the feeling of creating or sourcing amazing products. But it’s vital that you stay objective.
When we are so ‘involved’ with our product and business it can be easy to forget about the numbers.
As a buyer I am trained to use numbers as well as gut feeling (experience) to make a call on whether we launch a product. It was a skill I would develop in my team because being a successful buyer takes more than having a good eye..
There has been many occasion’s where I’ve refused to sign off beautiful products because the numbers have to fit. In the early years of my career I recall being totally devastated when products I wanted in the range didn’t get signed off but that is business. Over time I realized the importance of numbers & gut.
The profit has to be worth the investment. For a small business owner that’s profit made on the product but also investment of your time. The product has to serve the customer to give it it’s best chance to sell plus many other varying factors.
Me or the buyer ‘just recognizing it’s beauty’ was never enough. Listen to your intuition whilst being objective.
So as you’re building your business make sure you know your numbers ladies.
- Are you getting the best cost price?
- Is the retail price pitched correctly
- Are you making enough profit once you’ve advertised?
Just being slightly out on any of those factors can impact your sales..
I see lots of my clients product costs that don’t include every aspect. Look at all the costs of your products including postage, packaging, time spent, labeling. Literally everything that is costing you before you work out your profit margins.
The next part is to understand your retail prices, it’s important you know where you are positioning yourself in the market so that your prices are aligned. Customers are extremely savvy, with internet shopping being the norm, prices are easily accessible. I know myself I will look at pricing across various shops. I have always done this exercise, (in buying the process is called bench marking & range mapping) but it’s becoming common for shoppers to take this approach too.
This is just one of the areas I’ll be working through in the LAUNCH THAT PRODUCT MASTERCLASS. A 6 week online course sharing every step for you to launch your product profitably. There are 3 spaces left. The only catch to getting 20 years product launching experience is you must be high vibe, pro active and ready to create results for yourself.. https://www.melaniejbrooks.com/launch-that-product-masterclass/