It's
Hard To Find a Good Granola Bar
Teacher:
Gary Rudder
My standard
breakfast is a granola bar and a cup of coffee.
This may not make me an expert on granola bars, but
I do know what I like. In my (humble) opinion, the
Little Debbie company makes the best tasting
granola bars, PERIOD. In particular, their Fudge
Dipped Chocolate Chip granola bar is fantastic.
The problem is
they're extremely hard to find.
This gets to our
real subject. MARKETING.
I stopped for gas
at a mini market this week while out of town on
business. In search of breakfast, I browsed to see
if it was one of the rare markets where Little
Debbie products are sold. Lo and behold, not only
did they carry Little Debbie products, they even
had Fudge Dipped Chocolate Chip granola bars. As I
pulled out of the lot savoring my favorite
breakfast treat, I thought to myself, "I would
happily pay 89¢ for this." You see, someone at
the Little Debbie company has the idea that they
can't charge more than 25¢ each for their
products.
Therein lies the
problem. At 25¢ each, nobody can make any real
profit on the product. The mini market can't make
much. There is not much room for the route salesman
that stocks the racks to make any commission
either. Even the Little Debbie Company can't make
much profit on a 25¢ sale. I am convinced that
is the reason so few stores carry them. If you look
at all the other granola bars, you will see prices
from 69¢ to 89¢ or more and they aren't
as good as my favorite (not even close).
What does all
this mean to a bunch of Internet business folks?
1) Make a good
granola bar. In other words have a quality
product.
2) If you have a
great product, don't under price it.
The important
thing to realize is that once you have a quality
product, be sure you charge a quality price. Like
the granola bar, you have to charge enough that you
and your affiliates can make a good profit. If you
have the best granola bar, people don't mind paying
a reasonable price to get it.
Low price = low
profit = not many affiliates = low sales volume =
not enough money in your pocket at the end of the
month.
The point to
remember is this:
It is so very
hard to find a good granola bar. Why?
Because they just
don't charge enough for ANYBODY to make any money.
About
the teacher:
Gary
Rudder has been working as a computer network
consultant for over 10 years.
For time saving
hints and tips for Windows 95 and 98, visit his web
site CompuHints.com
If your computer crashes, who do you call.
Check out the offer for FREE disaster recovery
support!
Email: gary@compuhints.com