4.9 • 816 Ratings
🗓️ 27 November 2024
⏱️ 8 minutes
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In this Amazon Quick Tip, I answer this question: How do you know when it's time to invest in a variation of your product versus investing in more inventory?
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0:00.0 | What's up guys? This is Andy back with another Amazon quick tip. This is a question that was asked on my weekly Q&A call with my coaching students. Enjoy. |
0:16.2 | How do you know when it's time to invest in a variation of your product versus investing in |
0:22.9 | more inventory of your existing product? An excellent question. I was pondering about this and now I'm |
0:31.2 | like, gosh, so many thoughts are coming through my head now about the best way to go by answering |
0:35.4 | this. I'm thinking about back in the time when we took that step to get to the next level. I've talked about this before, but you're going |
0:42.9 | to reach this kind of tipping point in your brand. It's roughly around $10,000 a month in sales. |
0:48.4 | When you're running, when you get to about $10,000 a month in sales, you kind of hit that tipping |
0:52.1 | point where you get kind of stuck |
0:54.5 | where in order to really get to the next level, you're probably going to have to take on |
0:59.5 | outside investments. You're going to have to borrow money from a bank, from wherever you can get |
1:03.7 | it, but you're going to need to borrow significant money. And the two things you're going to |
1:07.6 | use that money on are more advertising and more skews. Now, this question |
1:13.3 | is kind of going into the more skews. Do you order more skews like more variations or do you just |
1:21.3 | order a crap ton more inventory of the existing skews that you have. Here's what I would say. |
1:28.5 | If I was to go back in time and relive this moment, |
1:32.1 | I would order more inventory before I ordered more variations |
1:37.6 | if I was selling out of my current variations. |
1:42.9 | Here's kind of my thought process behind this methodology. |
1:46.7 | Let's say I have three skews, three different variations of my product. And I'm, again, |
1:52.5 | I'm implementing the strategy of like, okay, more skews. You got to keep releasing new variations, |
1:56.0 | new products. That's how we scale. That's how we increase our net income. But I'm getting into that pinch, |
2:02.4 | that financial pinch of like, I'm making some profit, but not quite enough profit to order |
... |
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