I’m about to reveal to you the no. 1 secret of making money, which wouldn’t have been a secret if the business and marketing “gurus” we see all over the place were generous enough with their knowlege and findings. Yes, the secret of making money I’m about to show you in this article is a result of years of hard work and thorough research.
So buckle up and let’s get down to business.
But before we continue, I will like us to first and foremost define and understand and define the word ‘money’.
So, what is money?
The real money.
The real money is an idea that solves a problem or meets a need. That idea that when implemented solves a problem, meets a need, makes things easier, or get things done, is money. The tool that is used to solve a problem or meet needs is called Product. This can further be classified into tangible and intangible products.
Money as a legal tender
This is the money that is created by the law of a particular country or a certain geographical location for use as a current medium of exchange in the form of coins and bank notes (paper money).
Legal tender is a medium of payment recognized by a legal system to be valid for meeting financial obligations. Now we have defined the REAL money, and money as a legal tender, let’s now learn the secret of making money.
How do you make or receive money?
Money is received in exchange for products offered or services rendered. To make money therefore, you must have either a product to exchange, or a service to offer. There must be a process of exchange. This process of exchange is called “selling”.Therefore, inorder to make molney, you must sell something.
What are you selling? What do you have to offer?
Every business sells something. You must sell a product or products.
There are two types of products:
- Tangible products: These are products that can be seen and felt.
It has to do with physical goods e.g electronic appliances, food, clothing, furniture, and many more.
- Intangible products: Intangible products refers to products that cannot be seen or felt. Example of intangible products are services,information, medicare, consultancy, etc
- You can create or Manufacture your product or you can resell other people’s products
- Manufacturer produce their products , while Importers / distributors resell other people’s product
How To Become Financially Wealthy
- Create or have an exclusive right to resell a product that has a large market.
- Build a distribution system that will leverage on other people (Distributors, Bulk buyers, Retailers, Petty traders) who will make your product available to all the people that need it.
- If you have a a product with a profit margin of $1/pc and you have a distribution structure that sell 1 million pieces in a day, you will be making a whooping profit of $1 million daily!
- If your product is an essential need and its consumable, you will become stupendously rich. This is the success secret of Dangote, the Nigerian business guru.
THE BENEFITS OF MANUFACTURING TO TRADING
- Complete ownership of your product / brand name.
- Exclusive manufacturing and distribution rights.
- You have absolute control over the cost, price, and profitability.
- Once your product is established in the market and you have a robust distribution structure, manufacturing creates income like ATM MACHINE. You can literally PRINT MONEY!
The importance of marketing to the success of your business
What is Marketing?
Marketing is defined as the process or act of creating, communicating, and delivering value to customers.
Marketing is the life-blood of any business, as it determines the success or failure of the business.
There must therefore be conscious investment of time, energy, and resources into marketing if your business must succeed. It should be regarded as one of the most important activity of any business venture.
Most businesses die from lack of marketing than from lack of capital or mismanagement of funds.
In business, nothing happens until sales take place. Salaries are paid from sales made; business growth and expansion is determined and facilitated by the volume of sales made.
Note: Your real business is your customer, not your product, furniture, or office. The more customers you have, the more sales you make, and the bigger your business becomes.
MARKETING STRATEGIES FOR SMALL SCALE MANUFACTURERS.
LOW-BUDGET MARKETING STRATEGY FOR SMALL-SCALE MANUFACTURERS
This marketing strategy is ideal for manufacturers who do their production from the back of their houses, and do not have enough capital for government registration and approval of his product(s).And he has a very low budget for marketing.
This is the first sales method you could use. Start from your house: sell to your neighbours, sell to people on your street or community. Display the product or banner of the product in front of your house. People passing by could stop to patronize you. Sell to all your family members, friends, and acquaintances. Sell to your colleagues at your work place. Don’t fail to tell your fellow Christian or moslem brothers/sisters about your products. Finally, send SMS about your product to all the contact you have on your phone. One rule in marketing is that you “start from the KNOWN to the UNKNOWN!
SUPPLY TO PETTY SHOP OWNERS:
This method is advisable when your production is still very small and the packaging is not standard. For instance, if you are producing liquid soap and you are using used empty water pet-bottle without label. Of course you know you cannot supply this product to standard supermarkets and shopping malls, but only to petty traders around your vicinity.
USE SALES BOYS AND GIRLS
This method is perhaps the most effective sales strategy for small scale manufacturers. You could use your house as your office-base. Write and place a vacancy notice-board in front of your house. Recruit and train sales boys and girls within your locality. You could also get boys/girls from your church/mosque. Talk to your friends, neighbours, and family members to introduce young people looking for sales jobs to you.
HOW TO PAY SALES BOYS/GIRLS
Be informed that sales people should be paid on sales commission basis, and not on salary basis. This is for obvious reasons. Let’s assume you sell liquid air-freshener for $4/pc to end users, and cost of your production is $2/pc. You could give your sales people at $3/pc. You make $1 profit on every piece they sell, and they also make $1 profit from every piece they sell. That’s a win-win business deal.
Let’s assume you have 20 sales people selling 20pcs each of the product per day. That would be $400 pure profit in a day. Multiply it by 26 working days, and you will have a whooping $10,400. Yes, that’s real money! To make more money, increase the number of sales persons you have, and your profit will sky-rocket.
SUPPLY TO SUPERMARKET AND CREATE POINT OF SALES AWARENESS FOR YOUR PRODUCT.
- Identify a busy supermarket within your locality and supply them your product, probably on sales-on-return- basis.
- Print a banner of your product to display in front of the shop. The banner should show an attractive promotional offer: price reduction compared to other brands, or free gift for any purchase of your product.
- Wear a promotional t-shirt of your product, and position yourself in front of the shop to talk to incoming customers about your product and the promo offer. You may also leave a flier with them. Trust me, this method will attract enough customers to buy your product from that shop.
- Once you have established customers for your product in one supermarket, go to another one. You could strike a deal with 50 or more supermarkets within your location.
- Lets do some sales and profit projections using the same liquid air-freshener we used at first. Supposing you supply the product to supermarkets at the rate of $3, and you supply to 50 supermarkets who end up selling 50pcs each a day, that’s $2500 daily. In a month, you will make $65,000!
- This is the money-making potential of manufacturing business. You keep on making money for life, provided your product quality is consistently good.
- Most customers who are pleased with the quality of your product will use word-of-mouth advertisement to get more customers for you.
USE BANNERS,POSTERS, AND FLIERS TO ADVERTISE YOUR PRODUCTS.
- Hang banners of your product in front of your house.
- Print A4 posters, photocopy them, and paste in your neighbourhood to create awareness of your product.
- Print fliers and distribute strategically to create awareness for your products.
SUPPLY TO ORGANIZATIONS, OFFICES, HOTELS,RESTAURANTS, CLEANING COMPANIES.
- Supply liquid soap in 5 litres containers to restaurants
- Supply 5 litres air-freshener to hotels, offices, schools, churches, mosques, etc
- Supply stain remover to cleaning companies
- Supply 5 litres cold water starch to laundry and dry-cleaning companies.
AVERAGE-BUDGET MARKETING STRATEGIES FOR SMALL SCALE MANUFACTURERS
This method is ideal for a small scale manufacturer who has a factory for production. He also has the production capacity to satisfy the average, huge demands for his products. And he has done the formal registration for his products and received approval from the relevant authorities.
Another important requirement is the acquisition of one or two delivery buses to convey goods to your customers.
OFFLINE MARKETING STRATEGIES
- Use sales boys/girls, using your bus to embark on promotional sales from place to place. Use field sales people. Employ marketers who will go out to sell to people one on one. This method is very aggressive, and can generate good sales of your products daily. Pay the marketers on sales commission. The more marketers you have, and the more sales they make, the more money you make.
- Open up more sales outlets in supermarkets
- Employ sales representatives to go into big markets to get bulk buyers for your products
- One-on-one personal sales. This involves word of mouth product presentation and selling. Talk to people within your social sphere about your products and services. Everyone you come across on a daily basis may actually be your potential customers.
- Use handbills, fliers, posters, banners, business cards, print fliers that contain all the products you are marketing, and strategically distribute them to people. You will be amazed at the kind of positive response you will get in terms of sales. If for example, you share about 1000 fliers, you are likely going to get about 80 calls for enquiries, and possibly 20 people should buy from you. The use of posters, banners, and business cards are also very effective.
- Use traditional advertisement.
- Print media: place an advert of your products on local newspapers, magazines, tabloids, business directories. You can also distribute your fliers using newspaper insertion.
- Electronic media: you can run adverts using your local radio station and television. You can also run your advert on recorded musical/video CD.
- Use billboards, signboard, vehicle branding
- Attend trade fairs and product exhibitions
- Sell to company’s consumer co-operative societies: most big companies have cooperative societies that provides credit facilities for their members to purchase goods and services. To get contacts of most cooperative societies in your country, use google.com to search for “list of cooperative societies”. You will get many. Get their names, contact details, and follow up on them.
- Submit letter of introduction to organizations for coporate supplies
- Organize free empowerment seminars to recruit resellers who will resell your products.
ONLINE MARKETING STRATEGY
This involves all the marketing activities that is done on the internet. Nowadays, a lot of businesses are going online. In a few years to come, if your business is not online, you are not in business.
Develop a website/online shop for your product and services. All you need is buy your domain name and hosting. There are many people who offer these services, but Bluehost stands out. You can simply go to Bluehost, and purchase your domain and hosting. Then start designing your website using a CMS like WordPress.
- Use paid website
With less than $50, you can get your ecommerce website in less than 3 days. When you have a website, your business is open to the world 24/7. Note that your website is your virtual office/shop. Anyone from any part of the world can visit your website at any time of the day to do business with you. With your website and contact phone number, you do not need to rent an expensive office space or shop to do business.
- Use social media.
- Go to www.lynkupp.com . Sign up, get connected to friends. Use it to promote your products and services. You can join groups, join forums, comment on topics, or create new ones. The website also has an ecommerce shop where you can post your products and services and get patronized by thousands of people all over the world.
- Another social media platform to use is www.facebook.com. This platform enables you make friends, get connected, create fan page, and market your products and services. Anyone who likes your page will automatically be receiving updates about your posts on your products/services.
- Go to www.twitter.com Open a twitter account, get followers, and promote your product to them.
- Open www.linkedin.com and create a profile account, network with professionals, and promote your product and services to them.
- Instagram is another good platform to use in promoting your products and services. Simply open and account, get some followers, and upload pictures and short videos of your products and services.
- Join an online forum. There are many online forum platforms available to you. Simply use google.com to search for them. Lynkupp Forum( https://lynkupp.com/forums ) is one of the best platforms that caters to people from all over the world. Quora is another of them.
- Use free classified advert websites. Simply go to google.com and search for free classified ads websites in your country. Note: 90% of these sites are free. You can post your items/products on those platform without paying a dime.
- Use bulk SMS campaign. Simply open any bulk sms platform online, and create an account. With bulk sms, you can send customized sms to thousands of people at the same time, for a ridiculously cheap price. Remember that most people don’t watch TV, most people don’t read newspapers, most people don’t listen to radio, but almost everyone will read text messages that enter their phone. This is one reason using bulk sms is a very effective marketing tool for your products and services.
- Use bulk email campaign. This is similar to using bulk sms. And just like bulk sms, you can send bulk email to your potential customers to promote and market your products.
- Use your whatsapp messenger. This is a free marketing business platforms which enables you reach out to people via their contact number, and have a live/interactive chat with them. whatsapp also enables you post status updates which can be video, pictures, or texts,and they will get seen by your contacts. If you have 200 contacts on your whatsapp contact, and you update your status with picyures or videos or text, you can be sure that your contacts will see the updates for 24 hours before it disappears. And you can also be sure that many of them will chat you up to Mke enquiries about the products or service you advertised.
Whatsapp also enables you create a store and display your products. It helps you make call-voice and video which enhances your communication with your prospective customers.
- Youtube video marketing. Crate an account at www.youtube.com open an account with your email address, and start uploading videos.
How to drive traffic to your website
- Your marketing materials should showcase your website – your newspaper adverts, fliers, posters, business cards, etc.
- Place an online advert on popular websites to drive traffic to your own websites. E.g www.snnafrica.com
- Place advert on google by using google ads. You can also use facebook ads to send tons of traffic to your website.
- Guest posting. Submit free interesting articles to publication websites. Share valuable information of your expertise to attract people to your website.
- Sharae your profile on social networking sites like LynkUPP, Facebook, Twitter, and Linkedin.
Marketing success tips
- Ensure consistent product quality. Some products enter into the market, and capture people’s attention owing to their quality. But after a few months or years, the quality starts dwindling. The product becomes watered down or adulterated, and before you know it, the product starts dying, as patronage declines, and the company or manufacturers face bankruptcy. So whatever product you’re releasing into the market, ensure there is consistent quality. If there should be a change, it should be for the better: an improved quality.
- Get quality packaging/label. The golden rule in marketing is first capturing your customers’ attention. Get them attracted to your product or service. This has to do with packaging. If they are not attracted, they will not patronize you. Therefore capture their attention, and keep it. Use quality packaging. Make it attractive, simple, and clear. Just a glance at your product should tell people what it is, and what it does. Simplicity does it these days. So keep it simple.
- Get your product registered. Like I said earlier, keep your product registered with the appropriate regulatory authority in your country if you’re planning on going big. But if you’re doing it small scale, this shouldn’t bother you. However, you can start right where you are, with what you have, and after a few months or years, you can decide to get registered.
How to get started
- Start with what you have. You do not need tons of money to start manufacturing the products in this manual. You can start with any amount of money you have. Start small. Start with what you have, and grow your capital base.
- Start from your house. You can start from the back of your house, your sitting room, your kitchen, any part of your house. As you increase your production and sales capacity, you can then look for an office space or factory to rent. But start from your house first, and grow!
- Be willing to sell your product yourself. Before sales persons come to help you sell, you must first sell your products. Yourself! NEVER BE ASHAMED TO SELL YOUR PRODUCTS. Be proud of what you produce. Never produce or manufacture a product you cannot proudly and boldly introduce to people.
In our previous posts, we provided indepth guide on how to produce/manufacture different household products like fluoride free toothpaste, cold water starch, air-freshener, spray insecticide, stain-remover, and many others.
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