Sunday, October 01, 2006

Don't Compete With WalMart - The Importance Of Having A Niche Product

Why do you need a nich product? Because your online business has little hope of succeeding if you're going head to head with the big boys. The big businesses will always be able to beat your price and spend more for advertising. But you can be wildly successful by finding a niche market or niche product.

For example: nobody will buy a toaster from you and wait 5 days for it to be shipped when they can buy it today at their Local WalMart. And don't even think about trying to sell it for less. Bigger fish than you have failed at that game. You need to find niche products - products that you seldom find at your local mall. For example: WalMart sells several brands of toasters. But they don't sell every brand of toaster. They don't sell the $400.00 Pierre Cardin designer toaster. That's a niche product. And WalMart doesn't sell toasters shaped like a cat. But your store - "Everything Cats" - does (along with cat-shaped bread to put in your toaster).

Know Your Market Niche

If your market niche is too small it may not be profitable. That $400.00 designer toaster may be profitable but if there are only 4 people willing to buy it, you won't have much of a business. This is where "selling what you know" is helpful. If you've been involved with an industry or hobby for a number of years you laready know more about the market than most people Seek out trade publications or hobby magazines to learn more about your market. What are others selling? Can you find an empty niche market that's just begging to be filled?


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