Muse 1 is being particular difficult with the reality of owning an inventory. I do not want to own an inventory, it creates a lot of new challenges before even getting into the accounting side of the business. I have made great progress in forecasting operating income needs, profit margins, and sales today though. Markup appears to be okay, order processing and fulfillment charges seem nominal, but manageable. At this point I just need to get some final details on how I am allowed to use the manufacture’s brand, and get the micro-site to test my market.
January 16, 2010
Day 4 :: Muse 1
Today I have started working on the micro-testing web site for the product. I am still working with the manufacturer to clarify how I am allowed to use the brand, and if there is collateral available. After starting to crunch numbers for Fulfillment by Amazon, it looks like they will be a solid partner for fulfillment. I will still need to see how I want to integrate sales from the web site into Amazon because there system is preferential to the transaction take place through Amazon. More or less if I let them handle payment, which I want to, they can completely manage refunds. Downside to this from what I know at this point is that my clients would have to be on Amazon.com to make payment. I am not certain I want that user experience as I feel it could cheapen the experience.
I also looked into using Shopify, but quickly learned all they are offering is an online store application. If I use them I still need acquire a merchant account on my own. Since I only am selling a single product the ability to manage many products and a store of goods is not necessary.
January 15, 2010
Day 3 :: Muse 1
After researching a few different manufacturers for Muse 1 I decided it is not really worth my time at this point to find a lower cost manufacturer from the one I have. Instead I need to focus on analyzing the market for the product.
Today I am working on keyword research using Google Adwords. I have narrowed down about 11 different phrases which I will likely target in the Micro-Testing phase. This weekend I will get a web site up and running to start investigating my niche market. I am also intending to get Adwords completely setup and see what kind of traffic I can get driven to my site.
Muse 2 is still on the back burner until I get further along with Muse 1. Once I am setup with Muse 1 and receiving orders, then I believe I will again pick up Muse 2 moving full speed ahead. I will continue to jot down and track new ideas around this muse in the meantime, just in an effort to ensure Muse 1 happens I need to focus my energy.
January 14, 2010
Day 2 :: Muse 1
Upon hearing back from the manufacturer/retailer of the product for Muse 1 regarding their marketing strategy, it looks like a pretty promising first Muse for the marketing plan I am assembling. Today I am looking into other manufacturers of the product, and even looking for a higher quality product that what is being offered by the current manufacturer I have lined up. I am hoping I can find a manufacturer that can product an equivalent product for either cheaper, or a higher quality product.
In my research yesterday it became somewhat clear the manufacturer I am working with does not really own any specific patents or rights to produce the item. From what I can see at this point there are no patent holders for the product, hence why I am taking a deeper look into my manufacturer.
On the fulfillment side, I am pretty happy at this point with Amazon’s Fulfillment By Amazon service offering and believe I will go forward with them should I take this product to market.