With the continued economic crisis of various countries the term “disposable income” is really not used these days. However, it does not necessarily mean that big ticket items no longer have a market.
When crisis arise most entrepreneurs undercut their prices but the good news is that you can still come out on top and make more money than all of them without getting dragged into a price war.
The term “big ticket items” refer to goods that are usually pricey, and are considered as luxury goods. But with the current situation, people these days are starting to shift more toward “practical luxury”.
Every feature is examined, every possible comparison is made, and every benefit is played over and over again in the customer’s head.
Big ticket items can refer to many things, but remember the item does not have to be huge like a yacht to be considered as a big ticket item. For example, a laptop computer, a Blackberry or even an iPod can be considered as big ticket items in some markets.
I have mentioned earlier that we are amidst an economic crisis. Some of you might think that selling big ticket items in a situation like this is not at all feasible. Think again. I think now more than ever you should be selling big ticket items because there is money to be made.
Every time the economy is in trouble there are always some people who make money from other peoples’ hard times. Smart people are the ones who make something out of a bad situation. So here are the benefits as to why you should consider selling big ticket items:
1. Big tickets items allow you to sell less yet earn more. Say for example you are affiliate and you market an item that is priced at $17. So if your goal is to make $10,000 how many of these items do you have to sell? You roughly need to sell like 588 pieces of that product.
Now, instead of selling something with that amount, why don’t you consider selling something that amount to $300? However, if you sell a practical yet luxurious item like laptops which amounts to around $499, then you only have to sell like 20 units. Laptops as I have said earlier can be considered as big ticket items.
2. Selling big ticket items give you higher net profits. We all know that net profit is dependent entirely on what kind of product you are selling.
However, for big ticket items like information products, real estate or other unique and specialty items, more often than not your profit is much larger than on a low ticket item.
3. Prospects regard big ticket items as having more value than low priced items. They perceive such not just because of the amount that they have to pay in case they purchase this particular big ticket item.
Big ticket items are generally more comprehensive or customers feel that it is a substantial investment on their part, both in terms of time and money. So even the cost to produce the product is relatively, perceived value is extremely high.
If you are dealing with big ticket items then know that product returns are actually less. Why? Returns are minimal mainly because we are not dealing with compulsive buyers here.
Before your customers purchase this big ticket item, careful evaluation is done. Remember that it is much easier to own up to a mistake and return a low ticket product than to admit a mistake on big ticket items.
4. Big ticket items are more likely to be used by your customers. Going back to point number 3, careful evaluation is done before a customer purchases a big ticket item.
The reason why they evaluate everything thoroughly is because the investment of the customer in terms of cash, time and emotional investment is so much higher for a big ticket item, therefore, so is their personal level of obligation to actually utilize the product and benefit from it.
5. Big ticket items give you the opportunity to make more money without having your own product.
Like what we have learned in the past, you do not really need to make or create your own item to make money on the internet. If you do not have your own big ticket item, you can still make money by selling other people’s products.
In my opinion, it is way better to market and sell a big ticket item created by someone else because by then you eliminate the cost of production, the time involved to create the product, and some of the other costs involved. Just make sure that you choose a big ticket item that you believe in so marketing it is easier for you.
6. The return on investment with big ticket items is faster. As an online entrepreneur you have to go through writing a sales letter, creating and executing marketing campaigns drive traffic and all those other stuff that you have to sell your product.
So, if you are going through all that, not to mention financial investment you might as well sell big ticket items right?
I mean the process that you go through selling a low ticket item and big ticket item is the same so might as well earn big from all the trouble that you go through.
7. Selling big ticket items differentiates you from other businesses out there. The internet is a vast marketplace and being different is necessary if you want to stand out.
So if you are just going to be one of those marketers who sell eBooks then chances are you will not reach your goal of being rich. In selling big ticket items in a time such as this is the best way to differentiate your business.