FAQs
Frequently Asked Questions
Below is a long list of FAQs. Yes, there are probably way more FAQs here
than necessary. But I have tried to anticipate all your questions.
So if I missed something you need to know, please drop me a line.
Burning Questions
Online Store
Working Together
Pricing |
Burning
Questions
Q: Why are you doing this?
A: I love rhythm bones, enjoy direct response marketing, and need
the money.
Q: What inspired you to open this
store?
A: For years I thought it would be a great idea if the Rhythm Bones
Society (RBS) operated an online bone shop. But after looking into
it I realized that running an ecommerce store is a full-time job.
Eventually a number of factors came together at the right time that
inspired me to do something about it.
Q: Who needs this store?
A: The business was founded to fill the need for a store that offers
a comprehensive assortment of hard-to-find musical bone products and
accessories. (See 5 Good Reasons...)
Since bone players want and need a one-stop musical bone shop, then
I think you will agree there is no better place to distribute your
musical bones and products.
Q: What is your business philosophy?
A: The Bone Dry Musical Instrument Company operates under these two
prime tenets
1. |
Support and advance the art
of musical bone playing. |
2. |
Earn a reasonable profit distributing
hard-to-find musical bone products. |
Q: What is your marketing philosophy?
A: The store embraces the proven marketing principle of 'cultivating
customers.' In essence, this means making the customer happy. Accordingly,
our strategy is to attract qualified prospects with a wide selection
of hard-to-find musical bones and products, then convert them into
happy repeat customers with reasonable prices and good service.
Q: What is your marketing strategy?
A: The store serves a small dedicated niche market of musical bone
players. By seeking out a comprehensive selection of quality musical
bone products from around the globe, the business has become
the leading provider of hard-to-find musical bones and products.
Q: What is your formal training?
A: Like most direct response copywriters I am self-taught. But the
b.s. degree in Speech Education and m.s. in Design probably didn't
hurt.
Q: Do you have any practical experience
selling stuff?
A: Twenty years ago I directed the advertising of a specialty (police-fire-emt)
retail shop. My strongest area was direct response marketing.
Q: Do you have a mailing list?
A: Yes. It is called the Bone Dry
Music BULLETIN. As of this writing
(October 2008) more than 400 people have signed up. You can subscribe
here.
Q: Will I get rich selling my products
through your store?
A: That would be nice. Your odds of attaining wealth with us may or
may not be better than winning the state lottery. But depending what products you produce,
you can expect to sell anywhere from just one, to a dozen or more items each month.
Q: How many of my products can I
expect you to buy?
A: The amount I order depends on the item cost and appeal—and how far I can stretch my limited budget. I will likely order your products in lots of 4 to 12 each. In any event, the initial order will probably start small, then build over time.
Q: How big is your staff?
A: The entire staff is me. Yes, the online store might look big and
fancy, but it is just a small home business. (The inventory is warehoused on a few shelves in the hallway by the front door.)
Q: How do you fulfill orders when
you are away?
A: When I am away at out-of-town gigs and events like Bones Fest, I put up the
Gone Fishin' sign. (i.e. The store is configured so customers acknowledge that their order will be shipped
when I get back.) |
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Online
Store
Q: Which ecommerce solution are you
using?
A: After months of inspecting numerous ecommerce systems I signed up with Volusion. This is the only ecommerce provider that
offers all the high-priority features on my wish list.
Q: Does the store sell to both retail
and wholesale customers?
A: Yes. The store serves both retail and wholesale accounts. Retail
visitors see retail prices. Wholesale customers log in and see wholesale
prices. If you want to sell your products at larger quantities, then
make sure your products get listed in the wholesale catalog.
Q: How do I get my products into
the retail catalog?
A: Send me a list of your products (via email, url link, snail mail,
carrier pigeon or just use this handy Submit
Products form).
After reviewing your products you can expect me to place
an order or keep your product list on file.
The most important information I need is your product list. But you also want to let me know your payment terms
(i.e. Do you accept checks, credit cards, PayPal, etc). An easy
way to provide business and contact information is with the
handy registration form.
Q: How do I get my products listed in the wholesale catalog?
A: It's pretty much the same as with the retail catalog, but you
need to provide a little more information. You can get
all the details here.
Q: Do I need to provide pictures
of my products?
A: You can provide photos if you want, but I generally shoot
the product shots myself.
Q: Do you offer an affiliate program?
A: The Volusion ecommerce solution provides a robust affiliate program
where you earn cash for sending visitors who purchase items. I will
probably offer the program to relevant businesses and organizations.
Watch for an announcement in the Bone
Dry Music BULLETIN. To get the BULLETIN, you can subscribe here.
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Working
Together
Q: Do I have to fill out your Vendor Registration
form to sell my products to you?
A: No. The Vendor Registration form is just a convenient way to send me your contact/business data. As a registered vendor you get full access to vendor resources such as this comprehensive FAQ sheet.
Q: Do I have to fill out your Submit Products
form to get my product
in the catalogs?
A: No. The Submit
Products form merely offers a convenient way to send your product information and quantity prices.
Q: Do I have to fill out your Product Description Worksheet form to get my product
in the catalogs?
A: No. But the Product
Description Worksheet makes it easy to describe
your product. As a rule, the more
details you tell me about your product, the better your item
will sell.
Q: Will my product stand a better chance of getting into the catalog if I send you a sample?
A: No. A sample does not influence the decision whether or not to carry your goods. But the best way to evaluate musical bones is to examine them first-hand of course. So a product sample might help me assess your item more quickly and accurately.
Q: I sell my products at retail
to the public through my own factory outlet store. But I also want
to sell to you at wholesale. Do you have a problem with that?
A: No. Both of us selling your products to the public is not a problem.
Q: But that makes us competitors,
right?
A: Yes, and no. Yes, we compete for the same customers when you
sell through your retail store. No, we do not competein fact,
I am your customerwhen you sell goods to me at wholesale prices.
Q: Why should I sell my products
to you at wholesale when I can sell them myself for more money at
retail?
A: Like any manufacturer, selling your products through outside
distributors gives you more sales through broader market share.
Q: I like the idea of distributing
my products to outside retail outlets. But I currently sell my products
in my online factory outlet store to retail customers at wholesale
prices. I feel like I would be overcharging my customers if I raised
my prices as much as an outside retail store. What should I do?
A: Sorry, you can not have it both ways. If selling your products at a fair market price makes you
feel like you are cheating your retail customers, then expanding
into wholesale distribution is not for you.
Q: My products sell so fast that
I can not keep up with production. So how can I sell to you?
A: If you are so overwhelmed with production that you cannot fulfill
orders, then it makes no sense to increase sales. Contact me later
when your sales are slow, or when your production is geared to handle
the increased workload.
Q: Can I buy products from your
store at wholesale, then sell those items in my own online store
at retail prices?
A: Absolutely. All you need to do is register at the online store
for a wholesale account. I will make an announcement in the Bone
Dry Music BULLETIN when the wholesale store
is operational.
Q: Can I pay you a commission to sell my products?
A: Maybe. If you are in a situation where you can only sell on a
commission basis such as consulting or other contractual services,
or you have CDs or other products distributed through a third party.
I am not exactly sure how to work out the logistics on this, but
if commission sales are the only practical solution, then let's
talk.
Q: Can I sell products through
your store under a drop shipping arrangement?
A: Depends. As a rule, I want to avoid drop shipping except when
absolutely necessary. The chief problem with drop shipping is that
it comes down to ordering at a quantity of one. So if a customer
places an order with items from several different drop shippers,
then the customer pays a separate shipping charge for each item.
This can result in the shipping cost nearly doubling with each additional
item in their order. Since the total shipping charge can skyrocket,
the customer might understandably feel gouged.
So at this point in time I would prefer to reserve drop shipping
for special orders that require customization (such as custom lettering,
custom scrimshaw designs, custom carving, custom bone lengths and
the like). In these instances the customer would expect to pay extra
delivery charges for customized products that are worked on elsewhere, then
shipped separately by providers from outside locations.
On the other hand, if you produce a light-weight big-ticket (expensive)
item, then the best policy might be for us to drop ship and eat the extra shipping cost.
If this is your situation, then let's talk.
Other situations that might favor drop shipping are special promotional campaigns, and bulk orders generated from the
wholesale catalog.
Q: Can I sell products on consignment?
A: No. The store does not sell products on consignment. Yes,
I could stretch my budget by selling on consignment. But I prefer to
buy your products outright, then sell them to my customers at a
reasonable profit. I have considered selling items on consignment,
but decided against doing so for at least three reasons:
1. |
Operating
on a consignment basis is too complicated (the record keeping
is a nightmare). |
2. |
Record
keeping software for consignment sales is available but not
cost-effective. |
3. |
Vendors
become unhappy. (You get paid immediately when I buy from you
outright, but you might wait forever if getting paid on consignment.) |
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Pricing
Q: Since I manufacture my own products,
I can sell them for a lot less than you can. Doesn't that give me
an unfair advantage over you?
A: No. If you are a specialty retailer with a factory store, then underpricing your distributors is like shooting yourself in the foot.
Offering periodic sales is fine, but direct competition
sabotages your distribution network. The result of competing with
your retail distributors is that your prices can tumble, and
retailers might even refuse to carry your products. You are better served
letting your distributors compete against themselvesnot you,
the factory.
Q: But don't manufacturers sell
their products online for less than outside retailers who carry
the same items?
A: No. In fact, the opposite is usually true. Savvy manufacturers are keen
to demonstrate the value of their products by offering them at top
dollar. If they run sale offers at all, the price usually mirrors
outside retailers. More often than not, they offer coupons and rebates that encourage
shoppers to buy through a participating retail outlet. Legitimate factory store sales are
typically limited to discontinued items and factory seconds.
The real reason most manufacturers showcase their wares in online
stores is to create desire for their product line. This way they
can pre-sell the product by answering your questions and objections. Then they typically shuffle you off to an outside retail distributor:
"You can buy our products at one of these fine stores."
This is a proven way to support your retail
distribution network and build sales. At least that's how bigtime camera maker Nikon does it.
As a practical matter, manufacturers typically do best distributing products at volume quantities to
retailers and wholesalers. Retailers and wholesalers routinely excel at marketing to the end consumer.
Q: What is MSRP?
A: The acronym stands for Manufacturer's
Suggested Retail Price. Normally, this is the top price that you
(the manufacturer) determine the market will bear for your product.
In practical terms, MSRP is the
price a retailer sells your item when it is not on sale. Whether
the MRSP is discounted or not varies from manufacturer to manufacturer
and from industry to industry.
Yes, MSRP is often abused to the point that it becomes meaningless. But only if you, the manufacturer, allow it.
Q: If I discount the MSRP, then
I will sell lots of products, right?
A: Maybe, but you might go broke in the
process. Offering periodic sales and rebates is one thing, but setting
your MSRP below reasonable profitable levels is the way to see your
product die and go extinct. Some manufacturers allow unlimited discounting
which often results in price wars that spiral down until it no longer
pays to sell the productwhich eventually disappears from the
market place.
To combat price wars, savvy manufacturers offer incentives to retailers who refrain from advertising a discounted MSRP. (We are not talking about occasional sale offers or special pricing levels for private customer groups, all of which are fine.) Such incentives to retailers might include an authorized distributor link that sends shoppers to you directly from the factory store. Other practical rewards are free products, free accessory items, additional price discounts, and/or advertising rebates.
Q: How do I determine the MSRP?
A: Your MSRP should be high enough so the retailer can earn a fair
profit, but low enough to keep the item competitive in the market
place.
Q: I want to make top dollar. How
about we all agree to sell my stuff for lotsa bucks at a set amount?
A: Sorry, but that is price fixing, which is illegal. Below is a
clear and concise description of price fixing from the office of
Mike Cox, Attorney General of Michigan
- While the manufacturer may suggest a retail price, it cannot coerce the retailer into agreeing to it. If an agreement between the manufacturer and retailer is obtained, then the agreement is illegal.
- A number of different manufacturers may not agree to set prices for their products. Agreements between manufacturers to set prices are illegal.
- Similarly, a number of different retailers cannot agree to set prices for their products. Agreements between retailers to set prices are illegal.
Q: I am confused. Do you have to
sell at MSRP if I ask you to, or not?
A: I am not a lawyer. But here is what the Attorney General is saying above: It is okay if I decide
to sell at MSRP, but is illegal if I agree to sell at MSRP.
The key word is agree.
Q: So how can I make you sell at MSRP
without breaking the law?
A: You can't. But you can let your retailers
know you will no longer do business with them if they sell below
MSRP:
A manufacturer does have a legal right
to set a suggested retail price (a manufacturer's suggested
retail price or MSRP). The manufacturer also has the right to
unilaterally terminate a retailer who prices below the MSRP.
Frequently, when prices are identical for a product at every
store, it is because each retailer has decided to adhere to
the MSRP. |
So there you have it. We can give our customers three prices:
1. |
MSRP. |
2. |
Phoney street price with inflated MSRP. |
3. |
Authentic sale price. |
I prefer one and three.
A solid MSRP means we can lift sales by offering our customers all kinds of exciting special promotional offers such as group discounts, coupon discounts, bundle offers, and freebies and such.
In the end of course, supply and demand is what drives the market place. But a reasonable MSRP enables retailers to offer competitive prices and legitimate sales. From a marketing standpoint this means more sales and happy customers. That sounds good to me.
Q: What
is the Selling Price?
A: Selling price is the same as street price (see below).
Q: What
is the Street Price?
A: Street Price means the actual price (aka selling price). Some call it the 'everyday' price. Although street price is commonly the same as MSRP, you often see it in catalogs as: "Retail Price: $10.00. Our Price: only 8.95." This definitely encourages impulse sales, but unfortunately the MSRP is often artificially inflated. Ultimately, it's you (the manufacturer) who creates the environment which determines whether street price drops to a sale amount, or remains MSRP.
Q: What is a 'good' price?
A: Your challenge is to come up with a Wholesale Price and MSRP that makes everyone happy - you, me, and the customer.
- You: Wholesale price lets you earn a reasonable profit.
- Me: Wholesale price allows for sufficient retail MSRP markup.
- Customer: MSRP perceived as good value.
Retailers typically keystone retail prices from 2 to 3 times the cost of goods, including overhead and shipping. That means, ideally, you should be able to sell your products in quantity lots from one-third to one-half the retail selling price.
So if your price allows for sufficient markup—enough so a retailer can keystone your product and still remain competitive in the marketplace—then your wholesale price is good to go.
Q: What is so great about Keystone pricing?
A: Current economic wisdom says to survive in the market place, a retailer needs to at least double the cost of goods, including overhead and postage.
That usually comes down to selling an item from double to triple the wholesale cost. This is known as 'keystone' pricing. Keystoning is the world standard for retail pricing. The method is embraced by small mom and pop shops as well as large billion dollar firms. Why is keystone pricing so popular? Because the rule-of-thumb is quick, easy, and effective. What's more—and this is a crucial reason—keystone pricing provides enough margin for retailers to offer their customers special sales and discounts without giving away the store.
For example, with keystone pricing I can offer products to newsletter subscribers at an ample discount. On top of that, Rhythm Bones Society members can get their group discount. Plus I can delight everyone with a freebie such as a thermometer refrigerator magnet. And, I can do all this without going broke. When managed properly, keystone pricing is a handy and practical marketing tool that keeps happy customers coming back—and moves products off the shelf.
Q: What wholesale price do the other guys charge?
A: The wholesale discount from most of my bone suppliers is 50% retail (i.e. street price = 2x wholesale). Frankly, since our market is so teeny-tiny and because the sales volume is so low, the discount should be closer to 60% (i.e. street price = 2.5x wholesale) or more for a retailer to earn a fair profit. But alas, this is a cottage industry. And with the current sad state of the economy, a pair of bones at retail already cost too much, and folks like you who make the bones barely earn enough to stay in business as it is.
So I would advise you to set your wholesale prices low enough to stay competitive, but high enough so you will want to keep producing more products. After all, if you don't get paid enough for your work, then you might say the heck with it. So come up with a wholesale rate that makes everyone happy (you, me, and our customer)—and let's get those bones into the hands of folks who love to rattle them.
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© 2006, 2007, 2008
Bone Dry Musical Instrument Co.
Saint Louis, MO 63118
314-772-1610 (Warning: Two screaming kidz in the background)
Contact
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