shopify how to choose product

all right in this video we're gonna be,talking about something that I've been,getting asked about a pretty good amount,and it's a topic that I want to kind of,freestyle I will hopefully be throwing,in some screenshots of examples along,the way and that is finding the right,product now this is not going to be a,product research video I have those on,the channel as of recently in the last,few months where I show a little bit,more and some more criteria on what I,look for in a product well we're going,to talk about specifically and this,applies to even if you're making a lot,of money actually one of my friends who,does probably if I had a guess I don't,know exactly everyone's income but,revenue between half a million to a,million a month he does pretty well in,the e-commerce industry we're just kind,of shooting the talking about,products talking about you know high,ticket low ticket what the sweet spot,ranges with how Facebook optimizes,nowadays and so I want to talk about the,price point so even if you already have,a store with the product that you're,running you could add in another product,to that store or you could create a,completely new store and find more,products based on this pricing criteria,so one thing I want to outline is for,those you who are just starting please,understand I always say this I will say,until the day I die the first product,that you pick will probably not be the,one that makes you X amount whatever,that is it's probably not gonna be your,first winner so it does take a little,bit of time just understand that and,that's totally okay because that first,product is going to be a great learning,experience now one thing I do want to,say more so for the beginner side of,things if you're just starting finding a,product that is in a lower price point,range might be advantageous to you and,let me explain why it's gonna suit you a,lot better if you have a smaller budget,so this all depends on how much money,you can spend on marketing for myself I,love products that are in the 30 to 40,dollar range if I can sell it exactly in,that and I get it for under ten I'm,golden because I'm really that for me,that's how Facebook optimizes really,well I can be at a consistent 3 plus row,as and usually they're super super scale,one thing I also like about it's not,necessarily a low ticket product but,kind of that slightly lower to medium,range,thirty to forty dollars it's a lot of,customers right it's not just a $200,product where you have maybe the same,amount of revenue but less customers,there's a spot a sweet spot that I've,kind of found we're finding that balance,between high and low ticket spits out,enough customers for you to have a,bigger back end meaning text message,subscribers email subscribers a mini,chat list if you're doing that with,Facebook any sort of different,remarketing tool where you can then sell,them more products so it is all a data,game it's all a customer game obviously,the people who spent $200 with you are a,higher like it's just a higher value,client it's someone that is of better,quality because they've already proven,that they can and do spend more money,than those who spend thirty right so,it's just kind of finding that range now,if I were you and you have a little bit,of money to work with doesn't have to be,a huge amount on Facebook you're a,little bit familiar with the platform I,would challenge you okay you can do some,small tests try to find a product that,you can sell between 60 and 90 dollars,maybe so let's call it 50 and a hundred,that range ideally on the higher side of,that 70 80 90 I sell a good amount of,products they're not my primary products,but on stores that I do run I do have,other offers I run multiple products on,a couple of the stores some of them are,higher ticket now just full transparency,they're not the highest selling product,not even just in order terms but also in,terms of revenue there's secondary,products but they still produce a lot of,results now the reason I focus on these,even though they don't bring in the most,amount of money for me is because the,margin on them is just so great so if,you're looking to sell something that,you get for twenty one dollars and you,can sell it for $79.99 and you'll be,getting a twenty to thirty dollar cost,per purchase all day long on Facebook,that leaves you such a healthy margin,and that is really gonna be huge because,it's not just a percentage margin game,with Facebook it's also a dollar margin,so if you have a thirty dollar margin on,a product you're selling for you know,and that's after your cost for purchase,if you have a thirty dollar profit,margin on an eighty ninety dollar,hundred dollar product that's as much,dollar wiggle room as the revenue on,selling a thirty dollar product before,all the expenses so now when Facebook,fluctuates it'll be a lot more secure,and you can scale in some different ways,in my opinion you can just be a little,bit more ballsy you can throw a lot of,things to the wall and percentage-wise,you'll definitely have that dollar,amount of margin and still be profitable,so that's the thing gives you a little,bit more wiggle room I do like I,volunteer my range I do sell stuff,actually the lowest thing that I'm,selling right now is $19.99 that's a,little bit low for me I don't really,like to do that just because you know,they get full transparency the way that,that one's performing right now is like,this it's a little slightly wavy you,know it'll be a two point one two rows,and then a two point seven two point,three three point one like it's in the,twos its profitable the reason that I'd,do something like that is because I know,it's a good product it's not performing,as well as I thought it would but it is,profitable and it's bringing in a lot of,customers so if you're running a newer,ecommerce store bringing in a lot of,customers is huge can your name out,there its building your email list and,then when you do want to go sell a new,product one thing that most people don't,think about even if you want to let's,say you have an existing store and you,want to try a product and that's fifty,to a hundred dollar range don't just go,run ads yes you go do that,but don't only do that you could also,email your new product to your list and,that's gonna be a way to gauge how many,people are actually interested now,you're not gonna have any data on the,first time you do this but this is,something that you know when you play,that volume game it works great because,you go email them a low ticket product,see how many people buy what's that,percentage conversion then go do it a,week or two later with a higher ticket,then something in the middle figure out,which one works well which you know,which price range works good which,product you're trying to advertise to,them works well I feel like a lot of,people I feel like it two or three years,ago people were doing this better than,they are today,at least in my opinion in the e-commerce,space because nobody talks about it but,remarketing just to the email,text message many chat emailing their,already existing customers I feel like,that fundamental rule of acquiring the,customer is the most expensive thing,almost gets brushed to the side and keep,in mind when you sell a product for $30,you get it for seven and you have a ten,dollar cost for purchase that's what,most of my stuff looks like that ten,dollars is the most expensive piece of,that transaction because in theory it's,it's a numbers game that person okay,individually might not buy but when you,have 10,000 of them they will probably,buy it again so it's all about that law,of averages you know I don't know what,the quote was like someone said they'd,never flip a coin like live or die heads,or tails right if they live or die if it,was just one coin flip but if it was a,million it would be a lot better,statistics or whatever so you know,that's just one of those things it's a,numbers game,so remark it to those people you can use,it as a base to test new products for,free right and it's almost always gonna,work as long as you're selling them,something that they've already shown,interest in and it relates to that first,product they bought you'll usually be,a-ok so the only other thing I want to,touch on here I'm gonna try and keep,this video short as possible on the,product side of things is when you're,setting this up try and think about that,dollar margin not your percent so if,you're getting a product I actually saw,this the other day someone was trying to,sell a product for two hundred and sixty,nine dollars and ninety nine cents they,got the product for a hundred and,seventy nine dollars and ninety nine,cents that percentage margin is terrible,that's the situation where you want to,look at the percentage but it's still a,ninety dollar range now on a product,that's a little bit bad but the product,that's almost three hundred dollars it's,probably gonna cost at least fifty to,get a cost per purchase and once you,start scaling up usually that's gonna,kind of go up a little bit and optimize,out so that'll probably be a breakeven,product at best so just try to find,something that's probably a little lower,than that range of a couple hundred,dollars fights if they were ideal you're,not spending,more than 30 to 40% of the total revenue,you're selling the product at on product,cost but try to focus on at least having,like a healthy dollar margin so think,about it like this for every ten dollars,you should have that you're getting in,revenue you should own at least a three,to four dollar profit margin after your,cost per purchase so that makes it hard,when you're selling a 10 or 20 dollar,product but if you're selling something,for 30 even if you assume a high number,which is four dollars that's 12 dollars,well for an example one of my most sold,products I sell for 29.95 okay people,take upsells the AO B's like 37 but 2995,I get the product for six and a half,dollars okay six and a half I can get a,cost for purchase for around ten that's,16 and a half okay whatever that is and,the fluctuate sometimes some days it's,nine somebody's 12 the different ad sets,different campaigns they change but that,dollar margin is very healthy,so even when Facebook's fluctuating even,when for an example all the Coban stuff,that's going on my shipping costs went,up on two separate occasions do you,think I was happy about that,no I wasn't because my product cost went,up by like 20 percent went up by over a,dollar and that wasn't the product cost,you know we were still able to produce,it we still had a lot of inventory we,were sitting on but it was a shipping,cost so that right there I know a lot of,people who play the margin game they do,a volume and they just get a skim margin,off the top and if anything changes like,that you're out of business so try to,find something that's in that sweet spot,range if I were you I would recommend,looking for products that are 30 to 60,dollars if you already have something,going if you're already making money,with an e-commerce business try,something a little bit higher get into,above 100 is like a different ballgame,so I would just try to stick to that,range slightly under it figure out what,works for you and don't be afraid to,test more products once you have,something that's working I see too many,people in IKEA trust me because I see,the numbers I see people do this whether,they're friends their students or even,myself when I find a product that works,I usually slow down how many new,products I'm testing especially on that,store so continuously pumped new ones in,don't be that guy I mean I'm not,time but don't be that guy I need to,take my own advice more to be honest but,don't be that guy that just finds the,one winner and sticks with it because,half the time you could test more,products that are similar and find,something that works even better so I,recommend you do that from a product,research perspective that's what you,should be looking for from a pricing and,a product cost perspective so to keep,that in mind when you're doing your,research if you're already running an,e-commerce store look at the main,product or products that you're selling,does it fit within that margin everybody,has a different style you don't have to,listen to what I'm saying but you know I,just have four years of experience,there's people with more those people,who have spent more money made more,money I've spent many many many many,millions on Facebook Ads probably,approaching 10 million dollars and I,don't really keep track a lot of money I,put a lot of money into this I've tested,my theories and I know what works for me,and I'm just here to share that with you,so if you have any questions at all,about this if you would like help with,your product or whatever I'd be more,than happy to assist you either in a,video or in the comment section down,below so make sure to post your question,comments or problems in the comment,section because if I don't answer them,there they're probably going to get,answered in a video okay so I hope you,enjoyed this one hope you got some value,I wish this was something that was,thrown up on YouTube four years ago it,would have been a great help so,hopefully I can be that video on that,resource for you guys if you enjoyed it,if you got value I greatly appreciate if,you smash the like and subscribe button,down below with that being said I'll be,seeing you in the next video peace

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