Who Should I Target for My Ecommerce Business on a Small Budget?

Who Should I Target for My Ecommerce Business on a Small Budget?

WHO TO TARGET WITH A TINY BUDGET

Question:

Next question is, this person is launching their wholesale/retail phone repair business soon and they’re saying with a very limited marketing budget, should I target individual consumers or businesses?

Answer:

John: The…man, not knowing much, I’ve got the dream crusher hat on because hey, boy, I don’t know…if you don’t know your go-to market and you’re going to do this, that seems like a really broad to ask of a question to dive in and start. So am I a wholesale or retail…I mean those are those are not just completely different businesses, they are miles apart ones a B To B Structure where your…you know and other is a mass marketing B to C type play, both with pretty entrenched competitors, so yeah, I don’t know anything else other than ‘gosh my dream crusher hat just magically floated up my head’ because I mean, I just don’t know that that’s a really good idea, but let’s reframe it and take off the dream crusher hat because I was told that when I pull the hat out I have to build up afterwards, which I hate I think you should just crush dreams and move on but let’s make a couple assumptions, he owns a cell phone repair shop in Downtown, Fayetteville, Arkansas and he’s killing it and that’s great. To me, it’s how can you then use the Internet and marketing to blow that up, how do you drive more traffic in, because your rent’s not going to go up, you’re probably not going to have to hire too many people unless you double, triple your volume so boy, with just a little tweak, that to me is it is a really good thing. E-commerce is hard, if you don’t do e-commerce full time, you don’t do e-commerce, especially not post-Amazon 2018.

John Max: and not when you’re coming up against Gazelle or some of these other big players, I mean you can’t beat them on a game of scale, which means you’re not gonna beat them on price so, and the question there is, if you can’t beat somebody on price and repairing their phone to normal, how it should be operating, what can you offer them that’s so great versus Gazelle?

John: Well if you’re an heir to the Nokia fortune, or the Kyocera or whatever, Ericsson, if you’re Bob Ericsson start this business, great you’ve probably gotten an advantage, if you’re just some dude, do something different.

John Max: when I think like to lead off with something that you can go and do, going on the assumption that you have a store currently, think about…you can’t go and play in a big ocean, I think, you can’t boil the ocean but you can boil a pot of water, so you can find, you know, if you…and this is going to take some research, understand that you know I know so I used to repair cell phone just for funsies, I know that an i Phone five and a six screen, I can get O.E.M. from the manufacturer and fix it for half the cost that a store with overhead has, so maybe create a mobile unit that goes and does it and repairs certain types of phones, you can target that on Facebook people who own iPhone five, and then run it that way, so it’s boiling small waters, it’s not trying to boil the ocean, if you want to grow in scale and if you want to take on a giant, you’ve either got to have connections or money.

John: Well funny enough I have a friend who’s actually done this and has been fairly successful with it, so I put on that hat and shout out to Cole Thornton down in Fort Smith, he’s under gadget grave. he’s opened several stores, they do really well, always highly helpful, I mean, he’s an entrepreneur and understands the web, he actually came from a web background, so he has some really good things he’s doing online, he’s not trying to take over the world but the same time he’s servicing more people through it.

John Max: An established physical presence too.

John: Yeah, multiple established physical presence and he’s able to leverage that So you know shout out to Cole

Written by
John James, M.D. is the CEO of Engine, an upcoming ecommerce software platform currently in closed beta. I paid for medical school with an ecommerce business I founded in my dorm room over twenty years ago, and eventually raised over $100 million in venture capital running Acumen Brands. Email me -- john at engineinsights dot com.