When you manufacture products...when do you profit????

This is so great, just what I've been looking for. Finally.
Ok here's my question:

My company 'creates' accessories for people with diabetes. And it is proving to be a great 'idea' that can surely become something worth bragging about later on in my life. But here's the thing. If I'm paying for all of my products up front and only making daily sales when will I ever be in the positive? When will I ever see a profit? I know they say wait 5 years in some cases, which is fine, but even 5 years from now, if I'm just making daily individual sales, how will I ever get over that chunk of money I put up to make the products???

I'm not manufacturing overseas so my costs are higher, but even if I produced overseas would that make a difference in my 'bottom line'? I'm totally confused as to how to make money.

Please advise. ~Thank You,
Rickina

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Replies to This Discussion

Permalink Reply by SUp.biz, COO on June 11, 2008 at 11:17pm: First off, I love your idea and think it has a world of potential.

As with any fashion product, even the case of medical fashion, I think it is important to try and get a celebrity endorsement. Find a list of all well-known individuals. Get in touch with their person and arrange to send them free products. Halle Berry is the most famous diabetic that comes to mind.

5 years is too long to wait for a profit. You should be making a profit on every sale. You may want to consider raising your price.

I see two major markets. One will be adult woman. This will focus on the design aspect and a celebrity endorsement. The other market will be children and the mother's who buy their products. Try and find a few designs or characters that kids love that you can really get behind.

I think the home page to your website should have the left half dedicated to products for adult women and the right half dedicated to children.

You could also take the pharmacy sales angle and give samples of your small products to hospitals and doctors. This will get the word out. Make sure your website address is branded on the products.

If you do not watch The Big Idea, then start watching. Send him an email or video about your story and product. Your product and story is the type he promotes. Send out some press releases about your story to your local newspaper and tv stations.

Feel free to add some more details with clarifying questions.

Ex: How much is it costing you for each product? Total monthly sales? How much do you spend on marketing and where? etc.; ▶ Reply to This

Permalink Reply by Stick Me Designs:Rickina on June 12, 2008 at 7:57am: Wow what great information and suggestions! I appreciate your feedback and your positive words, it's nice to hear expecially when you're just starting out. I do try to catch The Big Idea as I too think I would be a good fit for at least one of the segments. I've emailed a couple of times, but I guess I need to step up my email game :)

I certainly can understand your angle of catering to women and children. This has actually been my biggest market so far. Will try to pool my 'buzz' resources in that direction to focus even stronger.

Celebrity endorsements have been looking into that as well. I contacted Angie Stone's manager about a design or just some type of collaboration, and they were all about working together, and now I'm waiting to move forward. I'd like to get a high profile celebrity or two to get things really plugging, I guess my stumbling block is contacting them.

In terms of my spending and what my sales look like I have honestly spent only about $100 on marketing and advertising on blogs and social forums. No real big budget there, most of my startup was website, production of the bags, and the fabric to produce them, press release through PR Newswire, and packaging supplies like biz cards, postcards, thank you cards, etc.

I think where I've done well is through social networks like, Tudiabetes, MySpace, and Facebook not to mention that when people are searching for diabetes carrying cases and the like on Google I'm usually first page, before the 'bend'.

But I've got a lot to do to get to where I'd like to go, and not a lot of know-how on how to get there. Did that make sense?? Anyway, I'm eager to learn, listen and take all the feedback and suggestions as I can.

Thanks again!
~Rickina; ▶ Reply to This

Permalink Reply by SUp.biz, COO on June 12, 2008 at 1:02pm: The two ingredients for success in business are the person and the product. I must say that you have both. I can feel the passion and positivity coming through every post you write.

Did you use SponsoredReviews when marketing to blogs?; ▶ Reply to This

Permalink Reply by Stick Me Designs:Rickina on June 12, 2008 at 9:01pm: Umm a couple of times I did. But I know in all honesty I have not really scratched the blog surface. I actually have trouble trying to find a good fit. I know a lot of people have diabetes, and a lot of ladies want to still be stylish if they do. Maybe it's because there are soo many?? I don't know, but I would really like to hit more blogs up.; ▶ Reply to This

Permalink Reply by Mike & Marcy Cunningham on June 23, 2008 at 6:50pm: Rickina,

As a Diabetic, I'm glad you're focusing on women and children, because no male would go for 1 of the 5 sample pictured.

I suggest branching out with a Stickme for men site, think about the name and see how creative you can get. A couple of product suggestions: Camo, Leather, Rip-Stop Nylon Lite Weight, Belt Back Pack (Snap loops for the belt, positions in the rear, where all the cop shows have their guys keeping a gun), Shoulder Holster, Vehicle Logo packs ( beware logos are licensed and rights are expensive), sports teams (same story, but you can use color schemes), Playboy, Hooters.

Ok that's how men think. Some where in there area few good ideas.

Get Your Name On!

Mike

http://twitter.com/mike1mb; ▶ Reply to This

Permalink Reply by Stick Me Designs:Rickina on June 23, 2008 at 6:57pm: Hi Mike,

Thanks for those suggestions. We've looked into doing a guys line in the past and missed the mark. We really need more input such as you have suggested to really get a great product out there for you guys. The color scheme in sports team colors is doable, and a few other ideas we have. But guys are tough, to style for :) But it is certainly a market we could look into*

Thanks for sharing.
Rickina; ▶ Reply to This

Permalink Reply by Rajendra Aphale on June 30, 2008 at 11:56pm: Rickina,

Diabetes is growing worldwide and such product would certainly have great future.

5 years looks too long a time frame, but some products would take long time to repay, particularly the concept type of products.

Manufacturing overseas is a good idea but it also creates a lot of challenges in managing such an operation.

Understand and follow the product life cycle. In the initial phases the costs are high and hence the prices could be high or profits are low. I would suggest look at the prices, if there are opportunities to capture more value, depending on any competition if there is any.

I for one don't support celebrity endorsement for such products, but your market could be different. Such endorsements cost a bomb right in the beginning and it will simply add to your pile of investment you have already made in developing the products.

If you are looking at India or South East Asia for manufacturing, I can help.

Regards,

Rajendra; ▶ Reply to This

Permalink Reply by Janis Pettit on July 6, 2008 at 4:42pm: Rickina,

The diabetic market is huge. So assuming your product is appealing, the long term outlook should be good.

What I don't see you mention is a business and marketing plan. These are essential if you want to be profitable soon. You need to have a well thought out profit strategy and have a financial plan that's solid. You need to do basic research to see where you can reach the biggest number of diabetics while keeping marketing costs low. You should think about strategic alliances with companies that have already spent the time, effort and money to acquire a large client list of diabetics and see if they would agree to promote your product for a percentage of sales.

I could go on and on with ideas, but basically you need to think about where you want to be 2 years from now and plan backward. Just selling a few products and paying the bills is not what you deserve. You deserve more!!

Janis Pettit
The Small Business Profits Coach
http://smallbusinesws-bigresults.com; ▶ Reply to This

Permalink Reply by JaWar on August 26, 2008 at 5:46am: As the original reply stated you should be generating a profit with every product sold. Additionally, you'll want to look at large institutional sells/sales which tend to give any business an injection of financial resources. You'll want to visit conferences for diabetics and their doctors. Getting the word out about your product is paramount.

Here are some additional things to consider and/or do:

1) Redesign your website so that it is easier to purchase for both consumer and institution.
2) You may want to have two different sites (1) for consumers (2) for institutions
3) Place small classified Ads in related diabetic/health magazines for 12 to 18 months
4) Create videos for your products and Youtube it
5) You'll also want to put the videos on your website
6) Attend regional/national expos that draw 10,000's of people and give out samples, business cards and/or flyers. You may need to hire a street team to help. There are a number of aspiring models who may be interested in getting paid an hourly wage to assist you at these events.
7) Blog about the diabetes on a regular basis
8) Create an online radio and video show about diabetes and bring on experts
9) Create a podcast
10) Increase either your monthly or project budget

The list could go on and on. Perhaps these things will help your creative imagination.

GOJAWAR.COM; ▶ Reply to This

Permalink Reply by Søren on August 26, 2008 at 7:41am: you will earn a lot of money and respect, when you have been to comozap and recruited som guys for your buisness.; ▶ Reply to This