Should I Stick With My Product?

In today’s video, I’m laying out all my numbers.  This is a breakdown of the cost of selling on Amazon on a per unit basis for my first order.  There are a couple of places where I can save money, so I also outline my estimated costs for a subsequent order.  Watch the video and let me know (via the poll in the video) what you think I should do!

Transcript:

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hey everybody welcome to the bootstrap

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boutique where beginners build

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businesses and stuff so I was supposed

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to talk about some other stuff today in

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today’s video and probably was going to

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be a lot more happy and upbeat but I’m

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just really struggling right now on this

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product that i’m selling amazon and do I

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reorder and sell more and push through

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or do I just drop it and go to another

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product which I do have picked out and

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it’s just sitting on the sidelines right

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now and I really I don’t want to get

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distracted by like what’s the new shiny

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thing right I don’t want that to be

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what’s driving my decision making so I’m

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really trying to put that out of my head

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and just focus on is this product worth

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moving forward with or not and what I

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thought I’d do is just film a video kind

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of talking it out talking about my

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thoughts with it and I’d love your

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feedback I’m gonna give you all my

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numbers I’m going to tell you what I

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think I’m going to talk about the sales

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that I have had lately and let’s see

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what we can figure out so here’s where I

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am right now i have i ordered 250 units

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of this product and i have sold more in

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the 80s so I’ve got still 150 + left to

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sell so I don’t have to if I’m going to

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reorder in order to not go out of stock

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I don’t have to do it like right now

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it’s not immediate but I need to be

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getting ready and getting the money

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ready and all that good stuff and really

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you know tightening down a time line

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with my supplier figuring it all out so

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we are not there yet I don’t have to

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make a decision today but it’s getting

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close the alternative is of course that

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I just go out of stock and don’t sell

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anything for a while and that can happen

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that won’t be the worst thing in the

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world but like I said I’m just trying to

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figure it out and I was hoping you guys

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would go along on the journey with me so

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let’s go through my numbers here’s my

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current pricing structure on amazon

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right now my cost of goods for six

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dollars a unit

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shipping cost me six dollars and ninety

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two sent a unit I know and that again is

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fedex Air Express so that’s like the

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fastest method it’s coming by air it is

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very expensive to ship that way but so

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the total price of that six dollars and

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ninety two cent was seventeen hundred

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thirty dollars was my entire what I paid

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for shipping on that first order i also

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am paying i’m averaging about 85 sent a

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unit to ship those products into the

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Amazon warehouse so as you know they

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were delivered to my house and i’m

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shipping about 50 at a time to amazon

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just to keep a minimal amount stock so

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if they didn’t sell i didn’t have to pay

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a long term storage fee or something

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like that but it’s cost me on average

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about 85 sent a unit and then also i’m

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paying 20 sent a unit to have my f in

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sku which is amazon’s identifier applied

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to the package so my cost landed to

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Amazon is thirteen dollars in 97 sent

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amazon has a lot of fees that they

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charge you to sell on that platform

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there’s a pick and pack or referral

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there’s others on shore but those feeds

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are nine dollars and seven cents so my

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cost just to sell this product every

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time I sell this prodigy amazon it cost

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me twenty three dollars and four cent

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i’m selling this product for twenty-four

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dollars and ninety-nine cent so my

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profit if nothing goes wrong is one

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dollar ninety two cent which is bad it’s

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really bad oh this is not what i thought

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was going to happen with my first

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product I really thought that I was

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going to be one of those success stories

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and I’m just not so here’s a couple of

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issues with that one of my shipping is

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super high but that was ship via air

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express and that’s the most expensive

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way to ship it literally so I knew I

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could get that to come down so I wasn’t

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really worried i just wanted to launch a

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product that units on my costs six

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dollars a unit so i ordered 3,000 pieces

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i sell a 12 pack of this product and so

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it’s 50 cent apiece so three thousand

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times or 3,000 you know whatever its 250

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units total

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I talked to my supplier and I ordered

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3,000 pieces and they said they can’t

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give me a price break until i order

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10,000 pieces which is over 800 units

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and then it was only going to be seven

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sent a piece not a lot of money saved

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there and I don’t have the capital

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anyway or not really willing to put up

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the capital to order 10,000 pieces at

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this point because if I was if I was

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like already sold out and I thought well

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I can probably make it up on volumes and

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yeah I might be willing to invest the

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money but that’s not what’s happening

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here so that’s not what I want to do the

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Amazon cost it went up a dollar so if

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you’re not selling on Amazon currently

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you may not know but in the end of

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februari they’ve raised all their prices

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for FBA so the cost of everything

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associated with FBA went up and my cost

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went up about a dollar and so and

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another thing I talked about in another

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video I thought I was ordering 500 units

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of my product and I thought my product

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cost was going to be three dollars a

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unit and when I went back and I did the

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math because I the sub boxes all came

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into my house and I living room and I

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was counting I was like 25 boxes that

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doesn’t sound right i should have 50 if

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there’s ten a box went back and looked

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at my purchase order and no i ordered

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250 years I’m just bad at math sometimes

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all the time um anyway so I thought that

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I was selling three dollars and it was

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six I thought that you know I should the

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most expensive way possible right so I

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was thinking okay well I have a lot of

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ways that I can save some costs on this

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product and here’s what I am projecting

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my next order to cost me so it’s still

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going to be six dollars a unit because

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I’m not ordering 10,000 pieces so my

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product cost is not going to change I

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got a quote from guided imports to do my

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freight forwarding for me and it would

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be four dollars and seventy two sent a

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unit so we’re going to save two dollars

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and fifty Cent two dollars and twenty

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cent to 20 told you those bad at math

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220 a unit on shipping this would be

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shipping straight to the Amazon

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warehouse not to my house so I would

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save that 85 sent a unit

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Bridge I would also get my designer to

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fix my product to have the FN sku

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actually on the label so Amazon’s not

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adding it separately so I would save

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that 20 sending unit so that would have

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me at a amazon landed cost of ten

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dollars and seventy two cents a unit

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which is already saving me you know

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three dollars or so three dollars

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20-cent assuming the Amazon call stays

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the same at 907 I would be landed are

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all in Kosta amazon nineteen dollars and

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seventy nine cent if I still sold at

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2499 that I would have five dollars and

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twenty cent profit again assuming

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nothing goes wrong prior to PPC all that

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fun stuff here’s what I’m trying to

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figure out is it worth it that’s still

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not a lot of money to be made off of

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these products five dot twenty cent is

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you know if you go by the Scott Volcker

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Rule and you don’t have to but if you do

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five dollars and twenty cent falls well

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short of the 10 x 10 x one rule sticking

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with the Scott Volk ler Tim buys him by

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one rule which list maybe I should just

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recap that that means you’re selling one

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product 10 cells a day an average of ten

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dollars profit so if that’s what I was

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selling and we’re following those rules

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and them were just not there right the

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flip side of that is that the sales are

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not supporting even these teeny tiny

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little profits I don’t know what’s going

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on my pay per click but I do know that

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when I look at the ad spend every few

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days like nothing is changing and I

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don’t have a lot of impressions I was on

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a PPC training that Scott Vogler and

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Chris Shaffer and Dom sugar dead and I

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got to ask a question which was cool and

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I said you know look guys I watched a

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products five weeks ago I’ve gotten

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about 32,000 impression since then that

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seems low and they agree with me they

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said yeah that seems kind of low you

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know we want to see about a thousand a

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day so I’m well below that

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and I don’t I just don’t understand

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what’s what’s going on with that so I’ve

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got some ideas of ways that I can do

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work to mark it off of amazon I think

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can drive some traffic there if that I

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know I need to implement its just when

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do you feel try to find the time to do

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that it’s something I can’t do myself I

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need a second set of hands and that’s

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complicating issues but enough with the

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excuses Megan this is this is really

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what’s going on though this is how I

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just talk through the things I’m

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thinking about so I just wanted to do it

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kind of live with you guys and and get

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your thoughts on so as of this recording

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i have sold 86 units and like I said

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about five weeks and I just it’s just

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not enough you know I mean I have when I

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first launched my product i was selling

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like five six a day one day so 11 and I

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was like oh my gosh this is awesome but

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since then it just has not been that

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great and and so I don’t know what to do

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I don’t know did I Drive do I drive

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traffic from somewhere else do I just

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focus on PVC and throw my ad spend up to

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like five dollars click just try and get

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some stuff coming through do I just let

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it sell out at three units a day or two

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units a day until it’s on I don’t know

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guys so hey here’s just the insight into

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a mind if somebody’s that’s selling on

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Amazon what I am encouraged by is that I

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know I did a lot of things wrong this

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time that I won’t do next time like for

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instance I went into a category that was

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I believe too competitive now um I don’t

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know I don’t know why I did that don’t

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really remember back into

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september-october when I was sourcing

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this product why I was like yeah this is

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the one let’s see what i mean i love it

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i think it’s great i’ve had awesome

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feedback all my reviews have been five

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stars which knock on wood hope that

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00:10:36,220 –> 00:10:41,889
continues but i do think it was probably

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00:10:40,119 –> 00:10:44,799
too competitive it’s probably not

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differentiated enough so there’s just

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some stuff that I can do better that I

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need to do better and I’m excited on

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working on doing better the next time

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but if I can salvage this product if I

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00:10:54,970 –> 00:11:00,080
can fix it I also think that would be

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00:10:56,709 –> 00:11:03,020
pretty cool so we’ll see well

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what happens I am probably i’m going to

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try and throw up a little poll up here

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on the corner it might be over here i’m

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always bad at which way the cards come

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up but I can do pole so tell me do you

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think I continue with this product or

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should I move on this is not a democracy

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I’m still couldn’t make the decision on

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my own but i’m really curious with you

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guys having the numbers what you think I

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should do so I will look forward to your

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responses and I will talk to you next

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week take care what i thought was going

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to happen with my first product I really

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thought that I was going to be one of

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00:11:33,890 –> 00:11:40,030
those success stories and I’m just not

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00:11:35,600 –> 00:11:40,030
so here’s a couple of issue

 

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