Welcome to car talk. This is not talking about cars this is talking inside of a car. Today’s topic is about the fact that margins give you flexibility when it comes to business now I have people asking me a lot via DM and email and things like that how to find the right product they’re going to sell something on Ebay, Sell It or Amazon, whatever the case may be, what do you sell. And that’s really, really hard to do to find the right product to sell.
I am fortunate enough to have a product with good margins when I sell ear buds, and I have good margins. And that allows flexibility for example once in awhile I sell a whole lot on Amazon, and once in awhile someone will send some message that something wasn’t quite right, they weren’t happy, whatever the case may be, as every business does, even though I strive for perfection every single time, that’s also unrealistic. So when that happens every once in awhile, I have to do something about it to make it right.
And because I have a product with reasonable margins I am able to say offer a % refund, or another free product, or something like that which leads to impressing the customers like my last car talk about impressing customers and you’re able to impress them with great customer service and flexibility which is accomplished by higher margins. If a package gets lost, if something doesn’t get delivered right, it’d be much better for something to be a break even versus a loss. If you have to refund somebody’s order it’s a whole lot better to know that not everything you’re refunding is going to be loss. If someone keeps something a lot of times with Amazon if it’s all left BA on Amazon so Amazon handles returns for that, but if someone needs to send something back or wants to do something oftentimes it’s almost more cost effective for them to keep it. But the fact that I can say “Oh, if there’s a problem “I’ll send you a free hundred ear buds,” kind of thing, or give you % refund or something like that.
Because if you say a product sells for $ and you have to give them half off, it sure would be nice if after that % refund you refund them bucks it sure would be nice if that was a break even versus a loss of or dollars. So every business has different methods some are super low margin, high volume, and that works for a lot, i.e. things like Wal Mart, they don’t have a whole lot of markup on things but they sell a whole bunch and it works out in the end. Me personally I’m not a huge fan of that because I would much rather have a lower volume and better margins because it just gives flexibility and a much better possibility for higher customer service.
Impress your customers and retain those customers and I do happen to have the lowest prices available for ear buds, cent ear buds that is a unbeatable price that is offered through my company TFD Supplies but having good margins it allows flexibility to enable you to actually impress your customer versus give them the run around or the bare minimum to satisfy them so you can impress your customers by having products with decent margins because all margins are gonna do is give you increased flexibility, car talk, Tyler Douthitt.