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This is an article by John Merritt who lives in Natick, which is just outside Boston, Massachusetts. It's self explanatory, but I like the way John went about finding solutions to issues he encountered. As the Chinese proverb says - a problem is an opportunity flying on the wind.
So, here's John's story ...
In my "real job" I provide waste management consulting services, chiefly, to municipalities or other public entities. So, it is no surprise that clients have been fewer and farther between, with shrinking municipal budgets during this very difficult economic environment. While many years in business has provided some cushion, after too many bad months, I felt alternative sources of cash needed to be identified and had often thought fondly about developing some Internet business that could be managed anywhere - like in the shade of a palm tree somewhere.
My alternative business got its start with friends and family encouraging me to sell a hummingbird feeder I designed to attach to the outside of house windows, allowing close-up viewing and easy photos. "Do what you love for work and it will never seem like a job..." resonated with that suggestion, because hummingbird attracting and photographing has become an abiding passion. Beyond that, family forbears have a long history of selling things and it always appealed to me on a visceral level. Since I already had an eBay account, it seemed the logical place to begin the effort.
Like many others, I had made purchases and sold the occasional odd or end on eBay. Over the last nine months, though, I've plunged myself into an illuminating and satisfying immersion course on how to make and sell a product in today's worldwide shopping mall. But I really had no idea how much research and learning would be required. I needed to recognize and address various issues regarding design, manufacture, sales and shipping of my product at a price others were willing to pay.
Initial market research at eBay turned up thousands of other sellers offering hummingbird feeders, which came close to ending my endeavor before it ever began. But, I thought about it more and surveyed lists of carefully focused search results. I learned that no listed feeder emphasized photography, providing a sales angle and a product name: The Hummer Photo Feeder.
Setting a price was a very important element to consider, given not only our general economic conditions but also the fact that eBay is noted for finding buyers the best prices a worldwide marketplace can provide. Most feeders were priced above $15, while virtually none were at or under $10. If I could price at $10, I believed I would have a chance at some sales, even in tough times.
So my plunge into the fundamentals of manufacturing and sales really began. The final price is composed of many elements, including my time. At first, it took a half hour to make one feeder, using copper, suction cup, glass beads and test tube - worth about $4. When shipping, postage, eBay and PayPal fees are added to that, staying under $10 profitably became a challenge.
I reviewed the feeder design, construction, cost, shipping weight and aesthetics. Glass tubes are heavy, expensive and breakable. Online research found lighter, cheaper, shatterproof, clear, plastic test tubes, as well as better, lighter and cheaper sources for each feeder component, dropping total raw material cost to about 75 cents. With ultra-light shipping packets and the lighter feeder, postage and the other fees now brought my total cost to $5.
But, even after practice, it still took me 20 minutes per feeder and $15/hour didn't seem that great. So, further work led to my new "assembly line" workspace that allowed me to make a dozen feeders an hour, using a special wooden, wire-winding tool I dreamed up and my dad turned on his lathe. $60/hour seemed much better. Excited, I submitted my first eBay listing at the bargain basement price of $9.99, shipping included, and was immediately rewarded with pretty good sales, which have continued and grown to the point where I have placed over 135 feeders in 44 states.
Another important and satisfying lesson is how important post-sale services and support are to growing a customer base and generating repeat business. I always ship in less than 24 hours and offer unlimited e-mail support, as well as a monthly newsletter and feeder-related blog to my buyers. Many contribute to the blog and reply to my newsletters with their own ideas and experiences. Some have said they feel like part of a community and get diversion and pleasure from their experience.
What I enjoy the most is learning how folks around the country use and enjoy something I contributed to their lives. But there are also practical benefits. I learned several ways to improve my feeder and also that I should offer replacement tubes, nectar-dispensing bottles and cleaning brushes as additional products, further enhancing my little cottage industry.
From raw materials and inventory, through assembly and shipping to customer service, I have happily absorbed an interesting range of topics on my path to finding my entrepreneurial bootstraps. There are quite a few steps remaining before this enterprise will be paying the mortgage, but the return in learning and experience are harder to value.
This is Brian again ... I've just checked John's eBay ID and he's up to 149 feedbacks. Not bad for just over a year on eBay. If you'd like to see his Humming Bird Feeder, Johns eBay ID is mercomm. You can check the latest position, and see his listings, by using the advanced search on ebay.com and search for seller ID mercomm. |
