Today's tiny but mighty tip for any #founders or anyone that has an idea that involves selling online.
⚡️You MUST factor marketing into your cost / plan / manifesto!
It sounds like a no-brainer, but it's easy to forget to include!
There may be some unicorns out there that have been able to scale without paid advertising, but the reality is, you will need it in the wheelhouse.
Thus, when you're creating your retail pricing strategy after the cost of production and operations, you'll need to slap a number on top of that for advertising.
👩🏾💻 👉🏽.. let's say somewhere between $8-$15 (on a good day)
👩🏾💻 👉🏽 Logically this means that pricing your product below that benchmark number is going to make it VERY hard to get to profitability. *Unless you are hitting volume sales quickly.
👩🏾💻 👉🏽 You can mitigate this founder trauma early, by factoring in CPA + production cost + operations + your profit margin % that you want to take home. > Research your niche, what is the highest pricing point the market can take for this item?
BONUS Damage Control 👩🏾💻 👉🏽 Consider how many times your item will be purchased in a year. Do you have anything else in the pipeline to get that cart value ⬆️ 👉🏽 The higher the cart value the better the ROAS.
⚡️ 🔥 If the numbers don't match, walk away, you'll have another great idea!