In this article I will explain a FUNDAMENTAL fact about marketing that you MUST understand if you want to be one of the few who make serious money on eBay instead of one of the many who work long hours in return for a mediocre income by constantly selling their product to more and more new customers…
The fundamental fact about marketing that you must understand is that it is EASIER and CHEAPER to sell your products to your EXISTING customers who have ALREADY bought from you than it is to sell your products to new customers who haven’t bought from you before.
People tend to go back to where they bought before, provided that they had a good experience. Think about your own buying habits. Do you tend to buy your groceries from the same supermarket each week? Do you tend to go to the same hairdresser/barber each time you need a haircut?
We are creatures of habit. We find familiarity comforting. Unless we experience particularly bad service or poor value for money, we tend to give repeat business to the suppliers of the goods and services that we want.
But the opposite is also true. People won’t buy again if they’ve had a bad experience. If you went to a restaurant and the waiter was rude, the food was tasteless and the bill was high, would you go there again?
So if you give your customers EXCEPTIONAL VALUE FOR MONEY and EXCELLENT SERVICE the next time they need a product that you sell, they will have no reason to go to someone else. They know what to expect from you, but they don’t know what to expect from someone else. They will feel more comfortable buying from you than from someone that they have no experience of. And if you have given good service and value for money, they will want to reward you by giving you more of their custom.
Someone who hasn’t bought from you yet doesn’t know that you provide exceptional value for money and excellent service so they will be reluctant to spend a lot of money with you. But they will be willing to spend a small amount of money. Then, if you don’t deliver, they haven’t risked much.
Once they have bought something cheap from you, and discover that you OVER-DELIVER – because the product is better quality than they were expecting at that price – they will have the CONFIDENCE to spend MORE money with you on your other, more expensive, products.
So the “secret”, if you can call it that, is to build a list of happy customers – a “databank” of people who have ALREADY bought from you and who will be happy to buy from you again because you provide exceptional value for money and excellent service.
You should sell a cheap (but GOOD QUALITY) front-end product first to get as many people on to your list as possible. You then sell higher and higher priced back-end products to these same people.
These back-end products MUST be related to the front-end product so that they will be of interest to your existing customers who bought your front-end product. People who bought your front-end product aren’t likely to want your back-end product if it isn’t related to the front-end product in some way.
The real profit is in the back-end products for two reasons. Firstly, you can market these products direct to your existing customers (because you now have their contact details) without having to pay eBay’s listing and final valuation fees, so your costs are lower. And secondly, these back-end products are higher priced and so have higher profits.
For this system to work, you need a line of connected products of increasing value. Using this system means you aren’t reliant on continually trying to attract new customers. Your growing list of happy customers provides you with your very own market making your business more viable and increasing your financial security.