If you were going to sell things for a living, would you rather sell a high priced item, or a low priced item?

Question

Assuming the goal is to earn a decent living by selling things.

And assuming the Income Target is $50,000 per year.

And assuming you were willing to work on a commission basis.

Would you rather sell a larger number of products at a lower price, or a lower number of products at a higher price?

Answer 1

consider your 50,000$ annual net income.
high priced items have high profit and for some one starting out few annual sales.
lower priced items have lower profit and for a starter more chance of more sales.
what you lack in profit margin you can make up in resales.
how many Bentleys does a consumer buy per year?
how many hamburgers does a consumer buy per year?
the 'trick' is to find a product that servers a problem and creates results and in a repeat buy.
in our situation, our sales average $150 month/customer with a repeat purchase average of nine months a mere 60 customers/month is a good living.

Answer 2

This is one of the all time questions. Here's a few tips. If you are going to sell high priced items, have a high priced rolodex and be WELL funded, since turn around time can be much longer and the competition for higher priced items, especially business items, is numerous. Sell well priced, quality products and/or services to a very large and very highly targeted audience and you'll do best. High priced doesn't mean a bad or good thing. If it is high priced, but also higher quality, the right target audience will understand that and then they will buy more from you later.

Answer 3

Which product would you have the most volume for that would determine on what to sell also the area of market local or outside of your area that you live in. Another consideration would be the time span how soon do you need to see a profit and how much time and money is in voled to market the product.
My immediate financial needs would determine which way to go I probably would go with the products at a lower price more of a market but nothing would prevent you from doing both.

Answer 4

You will probably be better off selling more products at a lower price. You will likely have a broader market and the smaller sales will really add up. When you sell a much higher product sales tend to be spread farther apart and your market is more limited.

Answer 5

A large number at a lower price just in the beginning for the experience, and learning the business, then I'd move on to the big stuff when I felt comfortable. Hope this helped

Answer 6

Depends on the demand and supply position and the competition in that particular item of trade. Dealing in higher price items requires more capital compared to smaller priced items. Inventory to be maintained is also a consideration. On the whole if u deal with smaller no. of customer for high value items, u will be more at ease compared to dealing in smaller no. of items of lower value.

Answer 7

My brother in law owns his own business and he sells high priced items. It's a risky business becuase he has to front the money on a sale that could go as high as $13k, then wait for the customer to pay him. For me, I'd prefer selling a lot of reasonable priced items.

Answer 8

I am not a gambler by heart. So I would have to do the lower price items--just sell lots of them. Big ticket items would make me a nervous wreck--you lose a couple of sales and you are bankrupt.

Answer 9

Look at the demand aspect of your product. You dont want to be holding your inventory too long. This seems more important.