There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this new series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
CapForge Founder and Owner Matt Remuzzi reacts to another ecommerce product idea.
Video Transcript:
Business Advice Video:
These gold spoons are worth $13,000. Let me explain. Here they are being sold on Amazon as a set of 12 for $27. And they’re making 13,000 a month and they only have 42 reviews. And you can buy a set on Alibaba for $2. Profit margins are at least 25%. So this seller gets to take home around $3,000 every single month. So would you sell this product? Let me know in the comments below.
Matt:
Okay, well again I mean, if the products already being sold then you’re gonna sell the exact same thing. You’re gonna maybe pick up some sales from them. If you wanna get ahead of them, even if they only have 42 reviews when you start out you have zero reviews, so you gotta compete on price. And then the next person comes in and competes with you on price. And she’s saying profit margins are 25% like that’s some kind of automatic rule.It’s absolutely not an automatic rule. There are some sellers who do better than 25% and there are a lot of sellers who do worse than 25%. So saying sell the profit margin of 25% in sellers take home 3,000 a month from that is completely arbitrary and not at all a proven fact. So no I wouldn’t go sell the same product that someone else is paying, just cause you can find it on Alibaba. I would work on finding a product that a million people aren’t already selling and it’s different than what other people are selling and then you can differentiate it and add more value. And instead of selling it for the same low price that other people are selling it for, sell yours for more because you figured out how to make it worth more and differentiate from what other people are selling. So generally speaking I would say that advice is not super helpful.
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