I'm brand new and I just found this forum... I have been looking for a place I can bounce business ideas off people who are not partial to me! So if you will forgive me I will jump right in with a question that has been on my mind for quite some time.
I operate a small company that sells reusable travel mugs and those clear acrylic insulated tumblers with a straw (Starbucks sells them too, but they are always sold out). I do mine with funny sayings about coffee (Coffee addict, morning without coffee is like sleep, a coffee ransom note) and some pop culture themes like from Twilight (Team Jacob & Edward), Princess Bride, Captain Jack Sparrow, etc.
My cups sell really well... in person. Online? Not one single sale. I've been trying to market them online for a few months now and I'm getting hits but no sales. But then my hubby packed off another cup this morning for yet another co-worker who saw his and just HAD to have one.
So I am considering lowering my price. I'm priced at where my competition is, roughly, but I guess the main issue is that the cups cost about another $5 to ship which is about 30% of the price itself! I'm getting hits to the store, I've been able to increase my followers on Facebook, and just today announced the winners of a giveaway that I decided to do. I think it was a success... but I still haven't sold any online.
I'm sorry about the BOOK I am writing! Just really trying to debate this.
Anyway so here's the numbers. Because I'm a startup, my costs per cup are relatively high because I do not yet purchase in volume. My overhead costs are very minimal since I run it out of my office in my home, though.
The cups are priced at $12.99 right now, and again cost about $20 to ship. My main competitor is Vessel Drinkware and theirs are priced at $13.99, and Starbucks prices theirs at $12.95 but they are almost always out of stock and people are selling them on eBay for up to $20 apiece.
So, what do you think? I get hits but no buyers on my website. My website is at http://humeruswares.com
I really think that the shipping cost is the killer here - $5 to ship a $13 product is a lot. People snatch them up at shows, but I really hate doing shows and my family hates when I do them, so I really would like to get more online sales. I could potentially lower the price to $9.99, and I am thinking about doing that temporarily, but then there's the perceived value - these cups are very high quality and I don't want people to see them as "cheap."
Or, as opposed to lowering the price to $9.99, I guess I could keep the price the same and offer $1 shipping or something? That would essentially be the same since my out of pocket cost for the shipping would bring the profit level down to $9.99 per cup.