A basic product plus added value equals increased profits!

The reality is that few items nowadays carry a significant retail markup, and global markets such as Amazon do nothing to alleviate this situation, as there are so many sellers that prices can only go down.

Rather than taking the easy way out and simply purchasing an item at one price and selling it to someone else for double (which requires little skill and thus anyone can do, meaning that after a short period of time you will be unable to double your money due to competition), you should seek to ADD VALUE. In other words, purchase a standard product and then modify/change it in order to increase the product’s appeal to buyers. This allows for a higher profit margin and, depending on the changes you make to the product, may help reduce the level of competition you face.

Allow me to illustrate:

Consider purchasing an ordinary, plain t-shirt (t-shirts can be purchased wholesale for as little as $1.80/£1.00 each) and then printing something on it. If you’re creative with your printing, you could easily sell the ‘new improved’ t-shirt for $25/£15. Indeed, I have a friend who is attempting this very thing! He came up with a unique and original idea for printing on t-shirts and now prints them himself using a home-built screen printing press (seriously, he downloaded the instructions from the Internet and built the press himself!) All of the t-shirts he sells are either black or blue, and he prints exclusively in white – a deceptively simple concept that is proving to be quite profitable. Of course, it would be unjust to reveal what he is printing on the t-shirts, but there must be thousands of other possibilities.

There are numerous other ‘artistic’ activities that you may be able to participate in if you possess the necessary ability, but even if you are not artistic, you should not let this deter you….

I frequently receive emails from people requesting information on where to purchase blank CD-Rs for resale. The fact is that the profit margin on blank CD-Rs is negligible (in fact, unless you can sell thousands of them each week, I would avoid this market entirely). HOWEVER, if you put something valuable on a blank CD-R, that disc becomes significantly more valuable than it was when it was blank. Of course, I am not referring to the practise of including pirated material on discs, but rather to digital products that you have created or for which you have purchased resale rights. To illustrate how far this concept can be taken, I recently purchased a five-CD training course. The CDs and cases were worth less than $2.00, but I paid more than $800 for the course!

Why? For the simple reason that I desired the content. I knew the content was far more valuable than the CDs themselves and that they would assist me in increasing the profits of my own business (which they did and I recouped my investment within a week of studying and acting on the course material).

Once you’ve identified an opportunity similar to those outlined above (and there must be thousands of them), consider how you can outsource the work. A true entrepreneur’s goal should be to free up his or her time and devote it to developing new ideas or promoting existing ones – not to sit in the garage printing t-shirts!

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