TAS 462 (Hot Seat) Failed Product Launch Using Email List and What to Do Next?

Get ready for the very first Hot Seat session of 2018 with Scott and Chris on this episode of The Amazing Seller podcast! As always, the guys will break down an email from a TAS follower like you and then go through step by step what they see what's going well and what might need improvement. This is your chance to learn how the guys go through product listings and how they evaluate ways to refine their approach. Grab a pen and some paper and learn something new that could take your brand to the next level on this informative episode!   

Offers and giveaways work!

Once you’ve built up a solid email list, you want to make sure that you provide valuable offers and giveaways that will drive traffic to your product listing and in turn, result in sales. On this episode of The Amazing Seller, Scott and Chris go over a listing that has succeeded in driving traffic and sales from their initial offer and giveaways which shows that this method works! Unfortunately, this seller saw a steep decline in sales after the promotional price and period came to an end. The guys go over some possible reasons for this decline and provide their suggestions for ramping sales back up. Don’t miss it!

Make sure you take your time in the product research phase.

One of the worst things that you can do as you build your private label brand is to neglect a careful and studious approach in the product research phase. On this episode of The Amazing Seller, Scott and Chris look over one example of a seller who may have missed some important steps along the way that came back to bite them later on. Don’t let yourself fall into a similar bind! Listen to this episode to find out what the guys caught and how sellers like you can avoid similar mistakes! You don’t want to miss this helpful episode!

Introduce buyers to your brand through entry-level products.

If you want to start selling a product in a specific product category that has lots of competition, it’s wise to introduce your brand to those buyers through easy, entry-level products. On this episode of The Amazing Seller, Scott and Chris share their thoughts on why the seller in this Hot Seat session has been unable to gain traction in sales after their initial launch. Part of the reason why this seller has lackluster results is due to the fact that they are selling a high priced product in a very competitive niche. While the guys don’t suggest that this product is a bust, they do explain how it could have eased into the marketplace with better results. To hear the guys go into further detail, make sure to catch this episode!

Don’t forget to clean up your listing before you send buyers there.

An easy way to set your product listing and ultimately your brand up for success is by double and triple checking that you’ve gone over everything you can to optimize your product listing. If you’ve been around the TAS community for very long you know that this is an issue that Scott and Chris hammer home time and time again. On this Hot Seat session, they again emphasize why it’s important to run through your checklists to make sure you haven’t left any stone unturned. Learn more from Scott and Chris’ perspective on this fascinating episode of The Amazing Seller!

OUTLINE OF THIS EPISODE OF THE AMAZING SELLER

  • [0:03] Scott’s introduction to this episode of the podcast!
  • [2:00] Chris goes over an email from a TAS follower like you.
  • [5:00] Scott kicks off the Hot Seat with his initial thoughts.
  • [8:30] Competing with top brands selling the same product.
  • [14:00] How would Chris relaunch this product?
  • [17:30] Why isn’t this product selling?
  • [19:30] The reason why product research is so important.
  • [24:00] How do you drive traffic from your email list without losing credibility?
  • [32:00] Using lower priced items to lead people into your brand.
  • [36:00] Scott goes over some helpful action steps.
  • [39:30] Closing thoughts from Chris.

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TRANSCRIPT TAS 462

TAS 462: (Hot Seat) Failed Product Launch Using Email List and What to Do Next?

[00:00:02] Scott: Well, hey, hey, what’s up everyone? Welcome back to another episode of The Amazing Seller Podcast. This is episode number 462 and today we are going…

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to do another hot seat. This is the first hot seat of 2018. And today, myself and Chris Shaffer, are going to be digging into an email that came through the support desk over at The Amazing Seller and had some questions and concerns about their launch and why they didn’t get any sales during the launch as far as when they built the email list, they sent out the emails, but they didn’t get one sale and we’re going to dig into that. So, Chris, are you there, my friend?

[00:00:44] Chris: I am, brother. How are you doing this morning?

[00:00:46] Scott: I am doing well. And you may notice, everyone listening, that Chris sounds a little different today and that is, well, a couple of different reasons. Number one, you are in Pennsylvania, correct?

[00:00:56] Chris: I am. I’m freezing my butt off in Pennsylvania.

[00:01:00] Scott: And you’re on a different mic and you are like you just said you feel like a kid back in high school when you’re down in the basement doing your thing, whatever that was. For me, it was playing the guitar and stuff. And you still got your parents upstairs kind of like doing their thing because you’re there visiting for the holidays. Is that correct?

[00:01:21] Chris: Absolutely, man. It’s funny because we’ve done some workshops and stuff from here, but we haven’t really recorded any static podcast and normally they’re pretty quiet, but I can hear them stomping around upstairs. They can definitely hear me because my voice is about two octaves lower than it normally is and losing it a little bit but our buddy, Waseem, sent us an email and I thought it was a pretty interesting one, Scott. So, if you want to {143 to that, that’s fine.

[00:01:46] Scott: Yeah. Absolutely. And if you start to break up, Chris, because I can kind of hear it a little bit then I’m going to have to pause and we’ll have to go ahead and you guys listening won’t know. I’ll pause it and we’ll clean it up. But just bear with us, guys, if you do hear a little bit of breakup but Chris is in like sub-degree weather right now so maybe the Internet is not cooperating or whatever.

[00:02:05] Chris: It was going in and out all day yesterday. It’s held pretty steady this morning.

[00:02:10] Scott: Yeah. Why don’t you go ahead and try to read that email for us, so we can kind of get an understanding of what Waseem is struggling with and then we’ll dig into what we feel are some of the issues and things that we would work on and kind of dig into a little bit deeper?

[00:02:24] Chris: Awesome. So, kind of the gist of it, Scott, is that Waseem did build an email list. He got his product. It’s in Amazon. He built an email list of right around 6,000 people and when he went to launch the product, he got 1,000 opened which isn’t great. It’s not bad but it’s not great and he got 100 something clicks. It sounded like he got I think it was 120 people under the list and he didn’t sell anything, and he’s kind of curious as to why. He gave us the details of the listing and he said, “There’s a couple of things I want you guys to know. The photos are not professional. I expect them to be ready soon. The listing is indexed for its major keywords. The initial questions on the listing will be added soon from friends,” so it sounds like he’s getting some questions added to the listing. I generally don’t suggest that people do that but if you want to, go ahead I guess. I don’t mess with that just because I don’t want Amazon to think that we’re doing anything black hat. So, if customers have questions, I have them added. Otherwise, I don’t mess with it at all.

“Fourth, there’s a color variation on the way to FBA warehouses. Five, the launch price is $139. The price I offered to my email audience is $90. That’s a 35% savings or $49 off. The product is bundled with a frequently bought together item. Now, I would say the launch price of $109 might be slightly above average in this category given the fact that the item is off and a gift and is valued at $35. It’s actually below average on the bottom line.” So, he’s saying the frequently bought together item, that item he bundled it together with, is about $35 in value so he kind of increased the value of both the primary item and the secondary item. Does that make sense, Scott?

[00:04:03] Scott: It does. As we’re kind of going through this, I’m even starting to have some more thoughts than you and I just had briefly when you and I were pre-chatting a little bit just to kind of go through this, so we had a little bit of an understanding. But I’m starting to see even something else appear here which I’ll dig into a soon as you’re ready but, yeah, keep going.

[00:04:25] Chris: So, the audience that he created was created in two giveaways and they were both targeted. I mean, from what we can tell from what he said it, the audience is correct for his giveaway. The break-even retail price for this product, Scott, is $70 and he said, “I'm planning to initiate PPC once I have the photos which should be next week.” So, he should be running PPC right now. And some of the main keywords he gave us here that we kind of pulled up and took a look at depth and demand and all of the stuff that we normally do. And he said, “You know, what do you think could be a good launch strategy for high ticket products that does giveaways to work for high ticket products or is that kind of above the impulse purchase level? And then what can I do to relaunch this product after failing once taking into account that I already told my email list that the deal ended and would not want to lose credibility by announcing the same deal again?” So, Scott, what are kind of your initial thoughts on this? And I know you put together a quick checklist for us to run through here on some of the points we wanted to really highlight.

[00:05:20] Scott: Yeah. Well, let me first off start by saying that there is no right or wrong answer here. We can’t give you like this is exactly what’s going to happen, this is exactly what’s going to work. But by kind of going through this process a few different times now in different products, we feel that it does definitely work to the right audience. Now, it doesn’t mean that every audience is going to work. But usually, what happens, Chris, is when someone builds a list and it doesn't work it's because they used the wrong offer. In this case, I don’t believe that is the case. I think the offer was great and the offer, I believe, was for the exact item that was being used as a giveaway, that was also going to be the price. Because at $140, you can pretty much use that as your main giveaway because we like it to be between $100 and $200. So that’s fine. I think that’s 100% in-line and you got like 6,000 people to sign up and I think you ran two different contests. One was for a different product which was similar that could be related but the other one that you just recently did was 100% for the new product.

So, let’s just kind of say here that that part worked. We got an email list of people that are our target market that we know that are interested in this thing because they raised their hand and they wanted it or they would love it for free. So, they would want to win one, but they also let us know that they’re in this market. They’re interested in this market. So, the list building part worked. So, let’s check that one off. The problem is, is that after you built this list of these people that you know are your target market, you sent out three emails like we talk about and you got traffic there, and like Chris said, we probably could have tweaked the title maybe a little bit and got a better open rate because if we got a better open rate that means we would’ve gotten more clicks.

[00:07:20] Scott: If we’ve gotten more clicks, you might have made to one sale. Even just 10 more people that went ahead and opened that email then click the link inside would’ve led them over. So, even just 10 more people could have resulted in a sale. But it didn’t. So, again, we kind of look at it like we try to reverse back at the process. So, the first process, check. You did that right. The second part though that I’m looking at and now this is what we have to do is say like, well, okay why didn’t people buy? So, what I did, and Chris did, is we went back and really started to look at your product and we started to look at similar products selling for a lot less. In some cases, three times. Your product is three times more than some product. We’ve seen some that are $40 that are pretty much the same or to the consumer may seem to be the same. Now, you said that you bundled it with a lower ticketed price item which is something that’s great and that’s another thing that is also getting traffic. And, Chris, what was the price on that lower ticket price that’s selling all by itself?

[00:08:31] Chris: Somewhere $35.

[00:08:33] Scott: Around $35. So, maybe, just maybe and, again, Chris we’ll dig into more here but just thinking out loud here, maybe that offer needed to be that thing and that way there it would have been a lower ticketed price. So, maybe you sell that item by itself or as a variation on that, so you can buy the one product by itself, the other product by itself, and then you have a bundle in that same listing. Does that make sense, Chris?

[00:09:03] Chris: It does. And for me, that’s definitely something you can do, Scott. So, what you’re thinking there just to clarify for everybody and mostly for myself and I guess for everybody listening, you’re talking about driving them to that thing. So, let’s just say we’re selling a garlic press, a garlic roller, but what we really want to sell is the garlic press and roller bundle.

[00:09:24] Scott: Yes.

[00:09:25] Chris: And we’re going to drive them to the garlic press by itself on the email because it’s a lower price point and we’re then going to let them choose whether they want that or they want the bundle.

[00:09:35] Scott: Exactly. Yeah. Because I think in this case this isn’t an impulse buy. If you are…

[00:09:42] Chris: This is definitely not an impulse buy.

[00:09:44] Scott: No, you’re going to do some research. You’re going to want to make sure that maybe with some of the top brands out there and that’s the other thing that you and I discovered is that there are some top brands that are selling 800 to 1,000 a month now going back to how do we figure out how many we need to sell in order to rank. Well, that’s an indicator. We need to break down that number and go, okay, the average seller is selling between 4 and 800 let’s say. Some are selling thousands, some are selling 250 but for the majority, let’s just say it’s 4 to 600 let’s call it. Well, we have to sell that many per day in order to even come close to ranking. So, in the beginning, I would’ve looked at that too. Now I’m not saying that this is a throwaway product like, “Forget about it. It’s not going to work.” I think it can still work but I think you’re going to have to have another lead-in offer that would get people there. The other thing is, and I think and I don’t know, Chris, if you agree or not but I think this type of market is definitely brand-driven in a sense especially when you're spending a premium for it. Do you agree?

[00:10:49] Chris: For sure. It is definitely one of those products that if I were looking at it and again this may be observation-biased, Scott, but if I were looking at it, I would be looking at the brand names because I know the brand names in the space. And most people who are into the space know the brand names in the space. That’s not to say that you can’t create a name for yourself but that is to say that it becomes much harder to be the premium product in the space if no one has ever heard of you.

Now, that may not be the issue as much with your launch list but even if you were to rank, Scott, if you’re at, and what we’re seeing here is basically we’re at triple the price point of the major brands. Even with that additional product, we’re at triple the price points, so let’s just call it 2X. We’re at 2X the major brands. The organic shopper, the person going to Amazon to look for this product is going to default to the major brand at that point because they have no idea who you are. And one of the perks of being a premium product generally is that you get some of the benefit of the doubt in terms of price point. They say, “Oh, well it’s more expensive so it must be better.” But in this space, because there are so many well-known brand names that are known for quality, that may not necessarily be the case especially at double the price point. And if it was $12 to $24 that would be one thing. If it’s $50 to $100, in this case, $140 that’s a totally different thing at least in my book. Because you have to then go research the brand at that price point. If I’m spending $100 on something, that’s kind of the point at which I do a little bit more research than something like $19 to $40.

[00:12:31] Scott: Well, and without giving the product away, there’s definitely some research that’s going to go into this thing because of the use or how people are using it and then you’re comparing it to other statements that the major brands are saying. It’s kind of like me. Like, I have a Mustang. I have an old classic Mustang. If I’m going to buy an aftermarket transmission for $3,000, I’m going to look at what the actual official one is and I’m going to try to match that stuff up and I’m going to see if everything is aligned before I go and do that. And also, I’m going to think if I don’t buy Mustang or Ford-like products then it’s not going to be maybe as good or maybe in this case maybe if I ever resell it, that would kind of like devalue the car.

I don’t know if that’s a good enough example but it kind of makes sense to where you are going to be doing that kind of research saying like, “Okay, well I’m looking at these numbers here.” I want to make sure that this here is what the products that fit that particular product is going to work. You know what I mean? So, you’re going to be looking at those things as far as like comparing apples-to-apples because of the use of this product. So, hopefully, that makes sense. So, I guess the big question, Chris, is this. I built a big email list. That works and now what do I do? I got no sales. How do I do this? And how would you relaunch this? So, I’d love your take on that, Chris. What’s your first thought?

[00:14:13] Chris: So, my first thought here, Scott, and he said, “I got thousands of opens which is great. I got hundreds of clicks which is great. But we got no sales.” Well, you know, from our email launch list like our ideal Amazon conversion rate is somewhere around 10%. If you’re converting 10%, you’re doing pretty good. You can improve [inaudible – 14:30] of 20. If you’re doing worse than that, you have a lot of room for improvement. Well, right now we’re converting at zero. So, there’s probably some room for improvement or we can bring it zero because we didn’t get traffic or are we converting at zero because there’s something on the listing. Well, we got hundreds of clicks. We should be able to have at least one sale there and we know from our email list that we generally convert it 5% to 6% from that which is going to be a little bit lower than the organic traffic on Amazon but that makes sense because we’re pulling people out of whatever it is that they’re doing. When they’re on Amazon, they’re there to buy stuff.

So, I would expect to see somewhere between maybe a 3% and a 6% conversion rate which means we should have seen at least a handful of sales here. We didn’t but it’s not because we don’t have enough people on the listing. So, for me the next step then would be to take a look at the listing and to take a look at that price point because what I’m going to do if it’s something that’s $100 or $90, in the case it’s launch promo, is I’m going to look at the listing and I’m going to look at competition to see what else is out there. And for me at $90, Waseem did call out that his photo needs a little bit of improvement. That would be the first place that I would start but I would also take, Scott, on this I would take a look at the bullets and I would take a look at the title. The title to me and I said this to you and I wanted to get your opinion on this, it’s got all the keywords in it, but it’s not written in a way that makes any sense. At least to me, as someone who knows a little bit about this product, it feels like it’s missing some words that would connect that for me. And if I’m glancing at it, I don’t really notice it but if I sit down and actually read what the thing is, it’s missing some words. That kind of threw me off in terms of how comfortable I was with the product.

[00:16:14] Chris: And then the same thing in the bullet points. We have some really great bullet points here but the first two are single word bullet points that don’t tell me much about the product. Do you kind of feel the same way about the top half of that listing?

[00:16:28] Scott: I do.

[00:16:28] Chris: Or do you have something different?

[00:16:29] Scott: No. I agree 110%.

[00:16:34] Chris: Ooh.

[00:16:35] Scott: Yeah. It’s a lot. I agree a lot on that and my concern is and it’s kind of too late at this point, but I would’ve gotten all of that stuff ready before I would’ve pushed people to that listing. You have one chance at the traffic once you drive it there. So, I would’ve built the email list maybe, but I wouldn’t have maybe sent them that promotion if my stuff wasn’t ready. But at this point, if you’ve already built the list, you probably got your product already so there’s no reason why you couldn’t have taken better pictures and you couldn’t have really, really dialed in the optimization on that. I think pictures are definitely going to sell but I think also in those bullets, you need to yell out what those features are because this is a feature and a benefit-driven product, but people will be looking at the features in this one to make sure that it aligns with the major brands.

So, that stuff needs to be super, super clear. So, I think that having 100 people go to that listing and not one person buy shows me that there is a conversion problem and that has to do with either the product not looking like, you know what I mean, as far as the product that they’re comparing to. It could also be that you don’t have a lot of reviews on it and everyone else has 800 plus reviews. That could be an issue which that’s going to be a hard one to fix until you really get a lot of sales, but I think more importantly here is the price point. I think the price point, even you discounting the price at 35% or whatever and giving it away for $90, to them they’re like, “Well, I can get the same one over here by a major brand for $48 or whatever,” or even $60.

[00:18:35] Scott: I’m getting the major brand versus the off-brand if you want to call it that because you haven’t built up a brand yet that people are following you and going. “Oh, I want that because that’s the expert in this market and I want that product from them.” Not even an influencer. An influencer probably would’ve been a better approach at this because then they would’ve put their stamp of approval on it. But in this case, I’m looking at it like 100 people landed there. We didn’t convert one sale. That’s a problem with the listing and probably with the product itself. Or you just not saying exactly what the product is especially those driving features that people are looking for and the benefits and then the price point. Like I’m not sure what we’re going to do with the price point because I think just even looking at the research if I was doing the product research on this, that would’ve been a red flag to me.

The other thing that would’ve been the red flag and I know, Chris, we weren’t going to go into the product research stuff here, but I think we have to because this is an important point to make is when you are looking at products, you have to look at what it’s going to take you to launch on Amazon and get traffic. You have to look at that. And in this case, if I was looking at all the numbers and I just did the video on this, I’ll actually link it up in the show notes, TheAmazingSeller.com/462. I will link that up in the show notes. It’s a little video I put together showing you kind of how to see the competition and what you are going to need to do to rank and a couple of other features or optimization, tweaks that you need to make in order to rank but that is there, and I’ll go ahead, and I’ll embed that inside of this episode on the blog. But I think we need to look at that stuff. That stuff is so important when you are researching a product and in this case, you need to have the pockets. I hate to say it, but you have to. In order to get traction and to get eyeballs, you have to either spend a ton on pay-per-click or you have to be able to come in at a lower price point to get traction and then slowly increase your price. But when you’re buying a product for $70, I mean literally $70 landed then you got Amazon fees on top of that, right, Chris? I mean that was 70 landed and then additional fees?

[00:20:46] Andy: Well, he said the break-even retail price. So, it sounds like he calculated that with the fees.

[00:20:51] Scott: Okay. So, good, so let's just call it $70. We still have our competition with a major brand pull that is selling for $45. So, how do you compete with that? The only way for me right now is then I’d have to go out and find influencers in my space that could put their stamp on it and say this is the one that I recommend because it’s really awesome and it does this, this, and this and major brands do this but this one does it better or something like that. What're your thoughts, Chris?

[00:21:21] Chris: I feel the same way and, Scott, I’ve been doing some digging here while we are on and I did find some other people finally that are selling at a similar price point but it’s a different product. It’s not the exact same product as the one that was seen as selling. The one I’ve found that is at a similar price point is at $109 is only selling at $140 something. I think it was $147, I’m going to run Jungle Scout again real fast, a month among five color variations and three sizes. So, where you and I were seeing that there’s tons of depth and demand is definitely at the lower price point in this market.

Now there’s always a market for premium product and what you and I have typically said in the past is you’re going to get 30% of people give or take and we see almost exactly 30% of that demand in the higher-end product. The problem is there’s a huge jump in price point. So, you’re not going to get any of those people that are on the fence. The reason that a higher price point has worked for you and I in some of the products in the new brand is, yes, we are double the price point but it’s $24, not $12, not going 50 to 100 which is you say it’s a lot easier to rationalize that in a $12 jump than it is in a $50 jump. And so, we need to have something that really, really stands out to this market.

Scott, I think if Waseem gets those photos squared away, the bullets squared away, and the titles squared away, he still does have a chance, but I think the price point is going to be the biggest thing that holds him back at least until he's anchored. If we didn't break even at 70, that means worst-case scenario, we break even, right, if we could sell it at 70. So, what are your thoughts? And, Waseem, I know you’re going to have a heart attack when you hear this, what are your thoughts on dropping it to like $75 and seeing what happens? Or even $80 just to give us $10 in pay-per-click per unit to play around with turning on that PPC.

[00:23:26] Chris: And I would say I would still attempt to relaunch this to the email list. Now, I would give them a better offer this time. And here, Waseem brought up something that we hear all the time with the email list, Scott. Let me see if I can find his verbiage because it was great. What can be done now to relaunch this product if their one failing attempt taking into account? I already told my audience that the deal is over, and I don’t want to lose credibility with them by announcing the same deal again. That’s a concern that we hear a lot. I already told him that the thing was on sale. How do I tell him again in a way that doesn’t let them know that I don’t keep my word? You and I have that conversation at least once a month on stuff whether it’s in a new brand, all of the stuff that we do. So, how do you go about doing that?

[00:24:18] Scott: Well, I mean, okay, and I understand it and you don’t want people to be like, “Oh, well, you told me that was going to be the last time you would ever offer that.” And for the most part, that’s true, that particular deal. Now, you could just say, “You know what, we’re doing a relaunch on this product and I know in the past I’ve offered it for this amount,” you could just go if you wanted to and don’t even do the exact deal. Maybe this time you offer 30% off and not 35%. That’s the way that I think you can get around it without you feeling as though you’re not giving them the same deal. Now, Chris, if you’re saying to go ahead and give them even a better deal, I think that better deal might be something else that you can add or that you can give them additionally versus taking more money off the product. But I’m not quite sure how we would do that.

So, it is a tricky situation, Chris. I’d love your thoughts on that like how would you get around it because I understand what he's saying. It's like you don't want to say, “Guys, hurry up, get in. This is the last time you'll ever see this,” and then a week later you see it again. I do believe that that will hurt your credibility but there are ways I think creatively that you can get around that by thinking of another way to give them a deal that they would want to jump on.

[00:25:39] Chris: So, there’s a couple of things. I don’t know, Scott, if you put the exact price point of the product in the email. If he didn’t, then an easy way to do that would be to give them 30% and just drop the price point on Amazon, right?

[00:25:52] Scott: Exactly.

[00:25:54] Chris: Because only 120 people saw the Amazon listing.

[00:25:57] Scott: Exactly.

[00:25:59] Chris: The other way to do that is to do something and, Scott, you probably know this, or I believe it was EAS Nutrition if you remember them. They were big in like the protein shakes in the late 80s or early 90s. They’re still around but you can only really find it like the grocery store, but they made their business big on direct mail which is very similar to email. Email is basically direct mail. It just doesn’t come to your house. And their most successful promotion of all time was the “We bought too much” promotion. They sent out a picture of two tractor-trailers pulled up with their dock and said, “We bought too much. We need to sell it. Here it is at 35%.” You can do something similar to that. That works so well for them that they then sent the same exact thing out the again, cross off one of the tractor trailers in the picture and said, “We still need to get rid the rest of it.” And even though they didn’t have overstock, it worked really well for them.

You can do something like that. “Hey, I have too much stock going into spring and we want to take care of you guys. We wanted you guys to get first crack at it.” You don’t have to be slimy about it, but you can definitely do something like that. “Hey, we’re getting ready to clear out something,” or do something like that and if you want to hedge that, just say, if you want to actually call it out, that works really well too. “Hey, we offered this previously for $90. We’re giving it away right now for $75. If any, you guys grab it for $90.” We know they didn’t but that way you’ll call it out. You’re letting your audience know that you’ll continue to take care of them. “Then you guys picked up for 90, just let us know and we’ll refund you the difference.”

[00:27:34] Scott: Yeah.

[00:27:35] Chris: And you can do something like that too. It doesn’t have to be that elaborate. Now the other thing is you can run sales. People run different sales all the time.

[00:27:43] Scott: All the time.

[00:27:43] Chris: That’s kind of the big deal, right? I mean, I helped my father mount a new television in the basement and he was looking at it and looking at it and looking at it and it was right around $1,000 and it went on sale Black Friday week for $1,000 versus $1,300 that I think it normally was. And the day he went to get it, the price changed back up. Well, I had looked at it on BestBuy.com. They were retargeting me with an ad that was still for $999. When you click on it, it went to $1,399. So, he got it for $100. But it was selling at $1,200 then from the end of Black Friday week until Christmas Day. Guess what? It went on sale for $999 again yesterday, the television. And nobody really thinks about that because once you get past that, you’re out of that in terms of the eyes of the consumer. It’s been a while now since you sent that email. There’s not really anything wrong with offering it again.

And the thing that people get caught up in, Scott, a lot of times with sales emails is they think that they have to come up with this really elaborate excuse. It just has to be literally any reason and I’ve talked about this in hot seats in the past about the study where they had people standing in line at the post office and they said, “Can I get in front of you because I want to?” That worked just as well as “because I’m late, because I’m in a rush to get to work, because my wife is in labor.” All of those things worked just as well as “because I want to.” And so, you can do that. If you get a couple of nasty emails, just respond to them and let them know that you’re happy to take care of them but you didn’t have anybody actually buy at that price point. So, I wouldn’t worry too much about it. People and companies do it all the time. You see stuff going on sale for different prices at different times and you never really notice it unless you were like really about to buy that product or you just bought that product. If he had bought the TV for $999 and it went on sale for $899, you better believe he would go into Best Buy but since nobody bought it, I don’t think you really have to worry about that too much. Does that make sense?

[00:29:45] Scott: Yeah. No, it does, and I think it just comes down to you have to understand that you can give sales over and over and over again and they can be the same, they can be similar, or you can just be creative and come up with something else, but you have to continue to give offers or else people can’t buy. Here’s probably the other thing that I would do is I would find a way to either shoot a quick video or to write a blog post about the thing and just talk about the benefits and the features or maybe you do a comparison and you say, “Hey, for the 2018 upcoming year, we wanted to do a shootout between the two or a review of each.” And then this way here you’re calling out all the benefits and features and then people that are into that market are going to be interested in that kind of shootout if you will.

I mean, I used to always in the photography world a new camera would come out and I’d want to see how it was compared to my current one or the Canon. So that’s another way that you can kind of do it because you’re kind of comparing the two side-by-side and you’re just giving them information about the market and about the products that are being sold in that market that you know that they’re using. Same thing with fishing. We kind of use that now as an example. It’s kind of like the new fishing rod that is last year’s compared to this year’s kind of thing or the name-brand versus the off-brand if you will or your brand. And then this way here you send them there and then you have a link inside throughout that links over to your listing but then at the bottom you can have a little call to action, “If you’d like to receive, whatever, 25% off during the month of whatever,” they can have it. And then this way here, you can always go back and change that link if you want to but that’d be another way to do it because then you’re not driving directly to a sale. You’re driving them to information but it’s directly about the product. I’d give that a try.

[00:31:45] Scott: The other thing is that we didn’t really talk about, Chris, is out of 6,000 emails, he had a thousand opened like I’d be sending to the non-opens too like there are 5,000 people that never opened your email. So, I would come up with a different headline that would get them to open. I would grab their attention with something else, maybe a question and then just get them to open the email and I would see how that would work. So, I would definitely work on that because we got 5,000 other people that have not seen it. So, who knows? Out of those 5,000, there’s probably going to be someone that would possibly buy it. So, that’s my thoughts as far as going back and kind of reverse engineering like what happened and seeing where we can improve and some things to think about. I think the last thing to really mention here is I would not abandon this market. I think it’s a great market, but I would find lower-priced items that I could sell in this market that could lead people into my brand. And then from there, you will have an offset.

So, this way here when you are building this list, we can build the list and we can get paid back before the build of the list then have this list that’s technically free that now you can always be leveraging and then driving over to your current products or eventually use that lead-in product, that $29 product. You can lead in with that and then on the back end of that when you want to get a little bit more sophisticated, you can then drive them to an upsell offer for your other product or even just giving them a discount, something like that. So, that’s kind of like my final thoughts there, Chris, I think. What about you?

[00:33:17] Chris: Yeah. I would say there’s definitely some legs in this product, Scott.

[00:33:21] Scott: Absolutely.

[00:33:21] Chris: I don’t think it’s a bad product. I think we need to make some changes to the listing. We need to make some changes to the price point probably at least until we get established. We may be able to bump that back up. If we’re making $10 a unit, that’s not bad but for something that we’re spending $70 on, we definitely want to make more than that. Ideally, if we can make $70 a sale that would be awesome. If we were selling one a day or two a day, that would be great. What we look for, Scott, is to make $100 a day. So, if we could sell two of these a day at $50 per outfit each then that would be kind of the ideal scenario. That means he needs to sell them for $120. I think we can get back to that price point and still sell $2 a day. I don’t think that’s unrealistic, but we do need to clean up the listing. We definitely need to get the professional photos in there. I would get PPC running. That’s going to give you all kinds of data and that’s going to even be more consistent traffic to that listing.

That’s another thing that we need to see. We talked about we got 120 people to see that listing.  Well, if we had 500, maybe we would’ve converted to that 5% or 10% that we’d like to see because that matches works out. If the second hundred people all buy the product, then we convert it a great rate. We’re looking at that kind of at a higher level up. You can’t just say, “Oh well, I’ve got 100 people and that didn’t convert,” we have to keep in mind that the more that traffic comes in, the higher that rate will get.

[00:34:47] Scott: Yeah.

[00:34:49] Chris: So, [inaudible – 34:49] whenever you figure out, get the listing squared away first, relaunch at that list, turn on PPC and definitely, definitely, definitely, this is a market that will come back to you again and again and again. You pick the right kind of market to build them annually. We just need to find some lower price point entry-level product, so that we can get them. The word that I’m going to start using, Scott, is indoctrinated or you’ll hear other people say, “We need to build a cult-ure.” A little culture. It’s not cult even. It’s culture. And we need to get those people familiar with us and then they’ll buy the higher price point products from us. And we see that in the new brand as well. They’re willing to buy a higher price point from us because they bought other stuff from us in the past.

[00:35:34] Scott: Absolutely.

[00:35:34] Chris: And once you start to do that with lower price point products, you have a much bigger base that you can then launch this stuff to.

[00:35:41] Scott: Yeah. And we haven’t even talked about like retargeting and all that stuff that you can do down the line. But I think again, Chris, just to kind of wrap this up, we’d like to keep this at our 30-minute mark because that’s kind of what we do live and if you guys ever want to attend one of these live sessions where we do this, we get a little bit more interaction from the hot seat attendee. We’re going to be doing a few more probably in 2018. We haven’t confirmed a date yet but head over to TheAmazingSeller.com/live and you can register there or get on the list of interest list that is for when we do announce that. We’ll let you guys know but they’re a lot of fun. But, yeah, just to kind of wrap up with some action steps here and I think it’s pretty clear, number one, looking at your listing, clean that up, get it right before you do anything else as far as sending any more traffic there like naturally you’re going to get traffic there probably just organically but not all that much. I would clean up your title and make that where it makes sense but also has your keywords in there that you want to rank for. Definitely, go over the bullets. I would focus on the top two and three because they’re the ones that are going to be drawing the most attention. I would work on those.

And then also on the back end, we haven’t even talked about that, but I would definitely make sure that that was all optimized as well in your description. You want to make sure that everything is very clear there. That will tighten up that and that’s number one. We got to get that right. Second part is create that piece of content that you can drive people to from your email list without really saying like, hey, go over there and get this discount and try that. And I would also go after my non-opens and I would try to get them engaged. I would try to get them to start to see the content and then also the product because if they see it, there’s a chance they could buy it. And again, the last thing is I think finding that lower-priced item. I love the market you’re in. I think it’s great and I think that there’s a ton of potential.

[00:37:41] Scott: I just think that you have to find lower ticket priced items to get interest because they’re more of an impulse buy and then from there, once they trust in the brand then they’ll start looking at your other stuff. And I know you said you’re kind of strapped for cash, well, it may take a little while, but I would start with one product at a time and again think about this, for a high-priced item like you have, spending $70, you could launch, gosh, probably 7 to 10 new products with that same budget. And then think about that, you have that many more pieces of real estate technically on Amazon that could bring people into your higher-priced items. So, I love it when people say, “I want to go after higher-priced items.” That’s awesome but understand, it’s going to take deeper pockets. That’s going to take a lot more for you to get ranked and if you’re going to do anything as far as a giveaway, it’s going to cost you more in the end because you’re going to be giving discounts on products that you want to break even for, but you have to make it really irresistible on that offer.

So that’s what I’m going to leave you with, Waseem, and anyone else that’s listening that might be in a similar situation, the show notes to this episode can be found at TheAmazingSeller.com/462. Again, I will include that video of me going through the product kind of analysis as far as like finding out what you are going to have to sell per day in order to rank and optimization and stuff there. That will be there as well. And then if you are interested in building your own email list, well, you can go over to EmailListWorkshop.com. We just created a new URL there for that. We used to direct people to TheAmazingSeller.com/buildlist. You can still go there. It’ll take you to the same spot. But it’s EmailListWorkshop.com and we show you exactly how we’re building an email list and how we are sending traffic to our listings and converting through that workshop. So, Chris, is there anything else you want to wrap up with before we sign off?

[00:39:38] Chris: I do want to kind of echo, Scott, what you were just talking about for a second because I think that can’t be understated. Higher price point items are awesome if you have deep pockets. For $70, we could launch seven products in the $19 to $45 price range, right? Most of our products cost us around $10 including Amazon fees and that kind of stuff. Is that a fair assessment?

[00:40:01] Scott: Yeah. I’d say landed $5 per unit and then you have the Amazon fees so, yeah, I would say $10.

[00:40:08] Chris: So, that for us we would be able to launch 7 to 10 products which then can bankroll the $70 product for us. And so, I would find some of those products for sure and figure out a way to make that work but don’t give up on this product either because there is definitely a market there. We just have to dial in the dialed. And with $140 price point, it’s just a little bit more of dialing usually. That’s something that’s an impulse buy. So, I think it’s great. I think you have an awesome email list. I think the product is probably pretty cool. I may end up actually picking one up because I do need one. It’s just one of those things where we’re going to have to play with it a little bit before we can get it to work. And realistically, if we can sell a handful of these a day, we can make this a successful product. So, it’s definitely there. We just have to finalize some of the details.

[00:40:57] Scott: Yeah. And I just wanted, before we do sign off, I wanted to say like we are, in the new brand, we are doing this reverse of the way Waseem did it. We started with lower-priced items anywhere from well we have some that are $14.99 but then those are just a couple but then from there anywhere from $20 to $24, somewhere in that range. Our goal now is to find a couple of products that are in the $30 to $50 range. See, so we’re working ourselves up the ladder and I know some people out there, some gurus or whatever you want to call them that are teaching or saying, “Well, just avoid all that and go right after the more expensive products.” And that’s fine but the one thing you have to understand is going to cost you a lot more money to get started just with a product purchase itself but then the marketing aspect of it. It’s going to cost you more and you have to be willing to spend that and that could be spending an extra $20,000 in order to get ranked and to start getting regular sales because you’re competing with a product that’s doing 30 to 50 to 75 sales a day.

Okay. So, those are things you just need to be aware of. I like going the other way. Low-priced items, starting at between like I said $19 to $40. We actually had a couple that were around $14.99 but actually they’ve increased up to $17.99 because we’re still increasing that, probably get it close to 20 but now we’re looking for products that are going to fill it out and we’re going to be able to find those products that are even $29.99 to $49.99. That’s going to be our next thing in the new brand. So, anyway, just wanted to kind of throw that out there.

[CLOSING]

[00:42:34] Scott: All right. Chris, I think that’s going to wrap it up for this hot seat. This has been really good. This is different. We haven’t done one like this that was talking about list building and kind of how to get that stuff to work and I think by going through this, I hope that you guys can see how you reverse engineer back through the process. You have to go back and say, “Okay, where can I improve? And right here I think we’ve established everything throughout that entire chain. So, hopefully, you got value from that. Good luck to all of your list building out there.

Again, to give you guys the link, EmailListWorkshop.com is where you can find that or TheAmazingSeller.com/buildlist. You can find that resource and it’s a workshop that we walk through that entire process. The show notes can be found at TheAmazingSeller.com/462 and all the show notes and that video that I’m going to put there will be included in there as well. All right. So, guys, that’s it. Remember as always, I’m here for you, I believe in you, and I’m rooting for you, but you have to, you have to, come on, say it with me, say it loud, say it proud, Chris is going to say it with me today from Pennsylvania down in the basement. Chris, are you ready?

[00:43:39] Chris: I am.

[00:43:40] Scott: Are you ready to let your parents hear you say the magic two words?

[00:43:43] Chris: Oh, they’ll hear me. They’ll be very confused.

[00:43:45] Scott: On the count of three. One, two, three. Take action. Have an awesome amazing day, guys, and I’ll see you right back here on the next episode.

[END]

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2 comments
  • Thanks for the show. You mention in the show a way to figure out how many units you are going to have to give away to get to the first page of search results. What exactly was this process? Thanks!

    • Hey Mayne you just need to know the average volume on the first page *using something like the 999 trick or junglescout. From there you need a way to get a consistent number of sales over 3-5 days 🙂

  • Thanks Scott for this podcast.. I’m currently doing Online Arbitrage on Amazon and loving every minute of it! Hard work for sure! I may move into PL once I get enough capital. Keep up the good work!

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