Long-Term Profit with Solid Selling Strategies

What do you have in common with a juggler?

The same thing that makes the juggler’s act successful makes your product offerings successful, too. Let me explain.

Usually she starts out juggling three balls. Simple enough, right? “Hey, I can do that,” you’ll think to yourself—the first time you watch. But it never stays that simple. The juggler’s accomplice starts tossing more items into the mix for the juggler to keep track of.

Before you know it, the juggler is throwing and catching so many tricks-of-the-trade that your eyes have a hard time keeping track. You’re just watching, completely amazed and captivated. She’s catching and throwing each item with precision. She’s had the training to make it happen, she has a plan, and she’s captivated you.




So, what does online retail success have in common with a juggler’s success?

The Turnover Principle

The basic concept behind the Turnover Principle is that through it, you will build the basis for a durable, thriving business in a constantly changing market.

Here are the key benefits of mastering the Turnover Principle:

- Focus on Profit You’ll focus your attention on executing a flexible plan, rather than on reacting to unanticipated challenges. This means you can spend a majority of your time selling products that make a profit.
- Stay In Demand All the Time: You’ll have in-demand products on the market all the time because as you phase items out, you’ll also phase new items in.
- Stay Ahead of Change: Instead of being caught off guard with changes in demand, you’ll know how to predict change and produce what your buyers want, when they want it.

A Balanced, Repeatable Strategy, Focused on Flexibility

For the principle to really work, you need products in all three stages at once: some you are researching, some you are finding sources for, and some you are selling.

When an item you’re selling phases out, no sweat! You’ve been researching and sourcing other products to take its place. Your research, source, and sell cycle keeps revolving.

1, 2, 3, and again, and again, and again. See how it all fits together?

The best part—It’s simple. And it will keep your business flexible, rolling with the punches, and way ahead of the competition. Again, this plan will help you pay the most attention to the products that will make the most money for you.

Benefits of Research in the Turnover Principle

The Turnover Principle begins with research because it reveals:
- What customers want to buy right now
- How much they’re willing to pay for “it”
- Whether you can make a profit on “it”
- Whether demand for “it” is rising or falling
- The size of the market and your potential in “it”

Using a research tool like HammerTap, you can discover the size of your market, how your product is performing, how much you can expect to make from each sale, how to anticipate upcoming market changes, and more!

Armed with market research, you can make educated decisions about your product, craft the most effective listings, and use your competitors’ mistakes and successes to boost your own sales.

Sourcing Strategies

Along with drop-shippers and other internet-based product sources, here are some lesser-known sources I’d like to suggest:

Local Sourcing
Local sourcing is finding products (typically used) from local sources such as estate and yard sales, thrift shops, and local outlet stores. This is a good technique to help you get started immediately in finding products to sell, but it is the most limited type of product sourcing. While you can sometimes find a gold-mine product, there is no guarantee you will ever find it the second time around.

Use Your Local Library
Not many people think of using the library, but it can be a great place to find product sources. Go to the reference desk and tell the librarian you want to look up products by manufacturer. The librarian should be able to point you to two or three sets of reference books you can use for this research.

Network with Local Retailers
Visit with local retailers that carry products that you have found sell on eBay. Ask the business owner if he/she would help you get in touch with vendors. If yes, then you are on your way. If not, come back later. Find the products you would like to market and get the names of the manufacturers. You can then look them up at your library and/or perhaps the internet.

Three Selling Strategies for Three Selling Goals

Market research is particularly crucial in this phase of the Turnover Principle. There are three main selling strategies you need to consider as a business owner:

1. High Volume: Listing Success Rate (LSR)
Strategy: A higher volume of sales yields greater profit in the long run, even if the profit per listing is less. This strategy is great for bulk items.

2. High Profit: Average Selling Price (ASP)
Strategy: A greater profit per sale yields greater overall profit in the long run, even if the conversion rate is lower. This strategy is great for small inventories or less common items.

3. Balanced: LSR x ASP
Strategy: This strategy tries to strike a balance between increasing conversion rate and earning more per sale in order to get the greatest profit in the long run. This strategy is great for selling common items at non-bulk rates.

Depending on your product, one of these three selling strategies will give you the greatest chance of success. With market research, you can pinpoint the strategy that will work best for your product, then create the best possible listing to attract the customers you’re looking for.

Let’s see this in action …

Remove the Guesswork and Take Control

The bottom line in all of this—remove the guesswork! The eBay marketplace is constantly changing, and without a solid business plan based on reliable market research, you could be losing profits.

The whole point of researching, sourcing and selling is to remove the chaos of running an eBay business and replace it with sound strategies for a long-term business.