I can't remember who said that, but
it's a message that has always stuck with me. As an individual
with a unique set of life experiences, you do indeed have a book
somewhere inside of you. We all do.
Obviously, my book got out.
And sooner or later, yours will, too. And when that happens,
sooner or later...You'll be faced with the same hard decision...
should I publish a printed version? Which leads us to the
title of this article...
WHY SHIP
MOLECULES WHEN YOU CAN SHIP ELECTRONS?
A short preface...From DAY 1, I have
held the following about selling on the Web...
----------------------E-COMMERCE
AXIOM----------------------
Launching a Web business
is far simpler than a "real-world business." To succeed
in a Web-based venture, you only have to make good on three STEPS,
each one directly under your control...
STEP 1 -- Develop a
great product & position it for Web sales.
STEP 2 -- Build a site that SELLS
with deadly effectiveness
STEP 3 -- Attract targeted traffic
to the site.
----------------------E-COMMERCE
AXIOM----------------------
Not coincidentally,
MYSS! devotes an entire volume to each of these three critical
steps. Selling on the Web really is "do-able"
-- but you have to *DO IT*, and you have to do it *RIGHT.*
Let's back up to STEP
1 above -- in MYSS!, we cover everything you could want to know
about brainstorming, judging, developing, pricing, and testing
new product concepts for the Web. "The 16-Point Checklist"
in particular has received terrific comments -- it really keeps
you on the "straight and narrow."
Lately, we've worked so hard on getting
the print version of MYSS! ready for release, that I've been asking
myself why the heck I decided to ever issue a print version!
After all...
sales of the Electronic Version are terrific (50-100 books per
day).
our automated, real-time verification and electronic shipping
makes the whole process effortless, allowing us to concentrate
on upcoming products AND
most importantly...
Feedback from readers is simply inspiring -- it's great starting
every morning with wonderful letters in the E-MAIL IN TRAY.
I've long since stopped adding testimonials to the site, or
that page would go forever.
So yes, I ask myself..."Why
the heck did you ever want to ship paper molecules when electrons
travel so fast and effortlessly?"
The answer is as obvious as it is
important...
Customers want
it.
The #1 Rule that supercedes all else
is to always stay customer-focused.
People who own the Electronic
Version of MYSS! write to say how much they love the readability,
and its super-usability compared to paper. The index and
TOC make finding what you want a real snap. Interlinking
between the volumes and out to the Web make it the ultimate reference
book.
But HEY...
"I'd like to read the book lying
down, too."
OR...
"I want to yellow-highlight
it and make notes, but that really messes up the monitor! <g>"
OR my favorite...
"I'd love to keep a copy by
'the throne.'"
(Hmmm... not exactly sure what THAT
last one means -- hope he plans to READ the paper while seated!)
Bottom line? Customers want
the printed version. So we're offering it. Now, we
knew that producing a hard copy of MYSS! and distributing it would
be more work than the Electronic Version. But we underestimated
just HOW MUCH more work!
We've learned a tremendous amount.
We'll write a full article about how to develop, produce and ship
printed products in a future edition of our sister publication,
SALES FROM THE EDGE. For now, here's a summary of the issues that
you must handle well if you want to sell printed products on the
Web...
-----SIDEBAR-----
Keep this for future
reference. I guarantee that if you're interested in selling
on the Web, sooner or later you'll consider a book.
-----SIDEBAR-----
PRINTING ISSUES...
sourcing -- get competitive bids, especially if this is your
first time. Printers love the smell of first-time publishers
--> easy money. So be careful -- better still, get
someone with experience to help.
the actual printing of the book -- Change layout? Digital
or offset? Color? Binding options? Our final product
is beautiful -- I'm fiercely proud of it. But it took
a heck of a lot of preparation and sourcing to get to this point!
first run -- how large? This is a huge decision.
How much risk are you willing to take? If you produce
too few, you may not be able to meet demand. If you produce
too many, you many end up with expensive kindling for the fireplace.
turnaround times -- know these in advance. If you can't
meet demand, you're in trouble. So how quickly can you
turn an order for more books into more inventory?
FULFILLMENT ISSUES...
inventory -- where do you plan to store the books? Careful or
your whole inventory can be lost. Monitor daily orders
carefully -- develop a strategy for staying ahead of demand.
Tie your inventory to your order taking and shipping.
The key is always to automate as much as possible.
picking-and-packing -- organize the people necessary to do this,
7 days a week.
shipping -- there are many ways to ship (Postal, UPS, FedEx,
and a host of other couriers). Lots of investigation to
do here (more on this below).
in-house or use a third party fulfillment company? There are
advantages and disadvantages. We chose to keep it in-house
-- since we're growing this business rapidly, we decided to
bite this bullet now and retain control, rather than build up
a dependency on a third party.
PRICING ISSUES...
All of a sudden, there are two pricing
issues, not one. How much are you going to charge for the
book? And how much for shipping and handling (S&H)?
The cost of production of your book
is almost irrelevant. Pricing of products is well covered in MYSS!.
Suffice it to say that our pricing is more philosophical in nature...I
refuse to shut people out by charging hundreds of dollars for
MYSS!. The Web is just too big an opportunity to deny anyone
a true chance. So what are we charging for our printed version
of MYSS!, a book that everyone agrees is the best single resource
for selling on the Web?...
CAD$45 which translates to USD$30!
As for your S&H pricing...
pick-pack-and-ship is labor-intensive (there's a word that I
truly detest... "labor-intensive" -- it feels like
you're back in the Stone Ages... OK, pre-Net ages). Factor
labor into your pricing. If you're a one-man band doing it yourself,
don't factor your time as zero! The whole project must
make economic sense after you factor ALL costs in at fair market
value.
cost of packaging -- boxes, bubble-pack, tape, etc. It
all adds up -- be professional and itemize every last inch of
tape and wrap into a spreadsheet.
Cost of shipper -- you've got to boil this down to a small number
of clearly different options. Best is to keep it simple,
usually Regular Mail" and one courier. If U.P.S.
has different rates to 20 different cities in the U.S., K-I-S-S
-- average them and offer only a SINGLE "next day"
price, no matter where the customer lives in the US. Same
with different areas of the world. This takes some VERY
CAREFUL consideration.
Once you have all the S&H costs
factored in, you have to decide if you want to make a profit on
S&H or not? We choose not to -- our goal is to share
MYSS! with as many people as possible, not to squeeze the maximum
dollars out of people. But, judging from the price of US$17
for the Electronic Version and US$30 for the printed, you already
know that! ;-)
SECURITY ISSUES...
Regular mail is less secure than courier. A UPS parcel never
leaves the UPS system, for example, until the signature of receipt.
So that's pretty secure. But people also ask to be shipped
by regular mail -- it's cheaper. However, packages sent
by mail tend not to arrive at the destination in certain countries.
That means that you have to send all over again, leaving you
out-of-pocket. And no matter what the country, since there's
no signature, dishonest people may simply claim never to have
received your package.
Credit card scams -- certain countries are notorious for buying
with bad or fabricated card numbers. Naturally, they want
it shipped the fastest (i.e., most expensive) way, since they're
not paying anyway... YOU ARE! Remember, now that you are shipping
molecules, when you get dinged, you're not simply out the non-cost
of a digital file. You're out the cost of S&H and the cost
of production of the book! So think security issues through!
Quickly review all the issues outlined
above. What do you notice? None of them even exist for digital
products! (OK, except for the credit card scam -- but even
there, the risk is far, far less.)
Hmmm....
Now, I only write what I have experienced.
So this story is not done yet. For example, research on
the Net says we can expect to sell anywhere from one-fifth (according
to some sources) to five times (according to others) as many PDF
files!
Not too hard to project starting
volumes with that kind of precision, right?
And if we sell five times as many
hard copies as Electronic copies, does that mean we'll depress
Electronic sales by 80% or that the Printed version will create
purely add-on sales? Or some mix of the two?
Frankly, I don't know. I will
in a couple of months. So we'll be expanding on all of these
concepts, and wrapping up the whole story, in a future edition
of SALES FROM THE EDGE. For now, we're starting gingerly...
The printed version will be made
available to existing owners of the electronic version of MYSS!
starting tomorrow. We'll be mailing to small groups of our PRE-ORDER
list first. Once we have shipped that list, we'll ease the printed
order form onto the site, ready to pull it (if need be) until
we increase our production and fulfillment capabilities.
Finally, we'll let our affiliates
know about it so that they can actively start promoting it.
Naturally, the active ones will automatically earn commissions
on sales of the printed books to EXISTING owners since 98% of
our sales is driven by our 5 Pillar Affiliate Program. That's
why we can afford to ship existing customers quietly and first
-- the "lifetime customer" concept takes the pressure
off affiliates to compete with each other for existing customers
when a new product hits the market. The 5 Pillar Affiliates don't
have to worry when we do a "private, controlled launch to
existing Electronic MYSS! owners (who have placed PRE-ORDERS)
first. Commissions are incurred automatically.
As you've seen, shipping molecules
is a heck of a lot tougher than shipping electrons. Is it
worth all the effort? Well... Everything in e-commerce is
an experiment. I'll let you know in a few months.
:-)
+++++++++++++++
Written by Ken Evoy, M.D.,
President of GoodBytes Information Products Inc.
© copyright 1999 GoodBytes Information Products Inc.
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© 2003 MLM Millionaire Training Systems, Inc.