Home Storage
There is talk of housing markets around the world softening, and it is likely that we will see less trading up in the coming months. What this means to real people (as opposed to economists) is that more of us will stay where we are; and our clutter will start to get on our nerves. In cities like Hong Kong and New York where space is already at a premium for most families・ space storage devices are already big business.
Items such as vacuum packing bags, hollow stools and shelf steps, and beds with built in storage are very useful when you are trying to make the most of a small space, and the fact that these products are advertised on TV means that there is clearly a demand for them already.
Marketing this type of product may be tricky if your products are already being heavily advertised at prices below where you can compete. If you can source them more cost effectively, or the level of advertising is not pervasive in your area then you are in with a good chance. If there is a heavy advertising campaign for say vacuum packing bags you can use this to your advantage by selling a complimentary product, such as stacking storage boxes, or shelving units. The number of products available as you will see if you take a look at www.spacesavers.com
In terms of distributing your products we would recommend the following approaches:
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Networking
EBay
Website
Direct Response
Shop
Friends, family, colleagues, business contacts, people that you speak to every day are a great place to start out with this kind of product range. These people are most likely to be in a similar situation to ourselves and if we find the products useful they are likely to as well. There is also a natural level of trust in buying something from someone we know as opposed to sending off a coupon from the newspaper or phoning a call centre after watching a TV ad. Each time you get a new batch of stock tell everyone about it, what it does and how you use it, show it to them, let them see it in action and be enthusiastic. It shouldn・t even feel like selling after the first few attempts.
EBay is a great place for this kind of product, for example searching for <vacuum bags> gives 2500 results. With a 4 pack of bags costing upwards of 10 dollars it looks as though I could buy direct from the TV and sell them for a profit. Searching on the term <storage> gives more than 14,000 results and to be fair some fascinating products. You will undoubtedly be able to sell some product and with a bit of clever branding maybe even start to build a name for yourself this way.
We highly recommend a website for every kind of business, but for this business it is vital especially if you plan to carry a number of stock items. You will want to promote your site online using tools like Google・s ：adwords； and of course the usual SEO techniques for gaining web search rankings but you should also advertise offline in your local area to build a base of loyal, local customers. Useful, visible items like fridge magnets, calendars and post it notes branded with your website can go a long way to building repeat traffic and hence orders.
Direct response is the classic way that this type of product is sold, I have mentioned TV advertising and do not expect that you will go this way initially, but you can copy the approach in your local newspaper, local event programmes and even using local radio adverts. I would recommend stressing that you are a local business and that you offer a use or return policy with a money back guarantee. Most of your customers will want, and use your products but giving a money back option will encourage those who are unsure to try your products and sticking to it will build your reputation as an honest trader.
I wouldn・t recommend jumping straight into this with a shop, but as you build your experience, and the number of products that you carry it may be worth looking at. Cheaper options may include small units at shopping malls, or even a market stall but this is probably better suited to a high traffic grade B type retail location. You need people to come in look, touch and understand the products and to have time in which to do so. Siting close to doctors, dentists, or even a Bank may give you the right kind of customers. Remember that setting up a shop is usually about twice as expensive as you first estimate and read our pages on finding customers at www.ideas2earn.com/finding_customers.html for more information.
I jokingly suggested that you could buy off of the TV and re-sell on EBay earlier in this idea, but you may actually be able to buy in bulk from bankrupt stock, or through wholesalers and then split large lots to sell for a profit. You will get better returns and a more consistent business by importing from abroad however.
Once you have identified the items that you want to sell, you can search on www.alibaba.com or other supplier sites (see our links page) for the products that you are looking for. You can start with small order sizes and increase them as you grow in confidence and experience.
Read our pages on dealing with suppliers at www.ideas2earn.com/findingSuppliers.html for more information.
Even when the housing market is hot there are many people who are not looking to move and could use more space, or less clutter.
Key markets may be the elderly, and those with young children.
Many of these products are innovative and fun, word of mouth will help you a lot in the early stages of development.