Why I Always Say Dont Sell Cheap

Every now and then i will write a post about how you shouldnt sell things cheap cheap; and everytime i post that; ppl will comment: 

‘i want to sell cheap so more people buy it’, ‘i want to sell cheap because im not greedy’ bla bla. 

Truthfully; i thought that too previously when i opened my skin pharmacy. I wanted it to be a place where products was cheap so more people can gain from it; but; even with previous business background; the business failed in 8 months; because i didnt have cashflow; ie profit after minusing everything. 

I absolutely forgot to factor in other costs like marketing, rental, utilities, staff etc. 

And since then i always believe; we shouldnt sell cheap. Your product cost should be maks 25% of your selling price or lower. 

Why? Lets go back to the fundamental of growing business; ie revenue. 

How do one get revenue in business? Only 3 ways:

1) sell cheap but need volume.

2) sell more things to same ppl

3) sell something by monthly.

So lets say you want to make say RM 1’000’000 a year. How do you get it? 

1) sell RM 10 soap to 100’000 ppl

2) sell soap plus lotion etc thts valued at RM 100 to 10’000 ppl

3) sell num (2) rm 100 value every month to same ppl = u will need 833 ppl.

Now; if you are where u r now; assuming first time business person with RM 10’000 investment to put into this business: which will be easier for you? 

To get 100’000 customers? Or 833 customers? 

And so thats y i always say; dont sell cheap. Sell at reasonable price; but make sure your product is good quality so there is repeat purchase there ie; they buy every month. 

So the kesimpulan is:

1) dont skimp on good quality product so ur customer comes back to buy every month. 

2) dont sell cheap because you will need the ‘profit’ to reinvest into marketing. If not how you gona find your customers? U need to spend on marketing! 

3) make products tht has continuation. Means if you start by selling soap; always try to find the pair; mayb lotion/ scrub/ whatever like that. This if you not sure can ask us:) 

And most importantly:

4) always take care of your cash flow. Thats your business’s bloodline. Dont do the same mistake as me😫

Hope this helps:) 

❤️Nisha