Add Value to a Product and Sell it at a Higher Price

In today’s connected world, the supply of goods far exceeds the demand for them. Through the internet, one could source for a wide variety of products. Hence it becomes very easy for a person to purchase a certain quantity of a product at a low price online. The person could then attempt to sell it individually either online or through a different channel at a higher price. This is the classic wholesale purchase to retail sale approach.

Generally speaking, any Tom, Dick or Harry could do that with relatively little capital.  Therefore there is tremendous competition at the retail level. This is especially so online where price comparisons could be made easily. If the product sells well at the stated price, then you could be certain that competitors would want a piece of the action. Soon, margins would be squeezed as the number of offers for the same product rapidly rises at lower prices.

One way of staying ahead of the competition is to identify new products ahead of the others. Then as a product sells well, you make the move to switch to another new product before the competition starts to erode the margins of the first product. However this requires a knack for spotting winners. It would be difficult to be consistently successful as luck could be involved in some instances.

A better approach would be to add value to the product and sell it at a higher price. For instance, suppose you sell furniture like display cabinets and bedside tables. You could install LED lights in the display cabinets and mobile phone chargers in the bedside tables. By customizing these additions to the original products you could make them look cool. Therefore you could charge a premium price that exceeds the price you could get for them individually. Furthermore this would help make your furniture look exclusive. Of course you may dismiss my suggestion as many display cabinets already come with LED lighting and bedside tables with mobile phone chargers. But you got the point, right?

Sometimes you could bundle a product which is a service together with the physical product that you are selling. For instance you could be selling art materials for new artists. You could then include an attendance to an art class designed to teach the budding artists how to use these materials. The only drawback is that you may not be able to charge a price that exceeds the sum of the individual purchases. However bundling them together creates an enhanced image for your products and helps in their sale.

Both examples above would help you to take on the competitors better than if you just buy wholesale and sell retail. This strategy would help to differentiate your products from others and enhance your image.

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