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In order to perform all of these tasks that go into running a successful eBay business enthusiastically and diligently, you need to have the right frame of mind: You need confidence in yourself and what you re doing. Be clear about your business s mission and believe that you re doing the right thing; all of the steps involved in running a successful business come that much easier.
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CHAPTER 2: Establishing Your Identity: Your Mission and Your Web Presence
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Develop a mission statement for your business and put it in writing on your web site or eBay Store. Try to find something unique to sell on eBay, and promote the fact that customers can t find that type of merchandise anywhere else. Try to reach a worldwide audience for merchandise that would only be found locally if it wasn t for eBay. Consider installing special software for managing auctions and automating tasks to improve productivity. Create a business web site that enables you to sell directly to customers and establish a professional identity. Develop a strong set of ethics and communicate them to your employees, so they can put them into practice when dealing with your customers.
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Drew Friedman doesn t sell as many items as other PowerSellers. In fact, he s happy if he is able to complete several transactions a month in one of his product lines. This is in dramatic contrast to most PowerSellers, who need to sell anywhere between 50 and 500 things each month just to make $1,000 or more in gross sales, which is the bare minimum needed to keep the magic PowerSeller icon next to their User ID. And yet, Drew is envied and respected by practically all of the sellers who know him. When they hear about what he sells and how he sells it, they want to do the same. That s because he succeeds not by volume sales but by profit margin. He is able to connect with loyal customers who have lots of disposable income. He knows just what his buyers want, and he is able to provide it for them through his eBay Store, White Mountain Trading Company.
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Business name White Mountain Trading Company Seller name Drew Friedman Web site Sells http://stores.ebay.com/White-Mountain-Trading-Company
Luxury fountain pens, wood display cases, fine gifts and collectibles
High Profits, Low Volume Equal Success: White Mountain Trading Company
Drew isn t a member of the high disposable income crowd he targets. But over the years, by being alert to new opportunities and exploring the market, he identified not only this valuable niche market but a product that would appeal to its members: high-priced, handcrafted, limited-edition fountain pens. This one sells for about $7,500, he said casually as he produced a pen from his pants pocket. I was almost afraid to hold on to something so valuable for fear that I would drop it. The pen was very heavy and embedded with numerous pave diamonds. As I admired the instrument, Drew described its many attributes, and I began to sense how much he loved to talk about his merchandise: this part was enamel, that part was gold, that part rhodium, a white metal related to platinum.
CHAPTER 3: Connect with Your Customers
If You re Going to Sell for a Living, You Might As Well Sell Something Expensive
A look at Drew s completed auctions on eBay indicates how he is able to maintain his PowerSeller status. He sells his share of watches and fine gifts for up to, say, $80. But as soon as he sells one pen for $3,995, he s made his Silver PowerSeller quota for that month. Over $10,000 in gross sales per month and he maintains his Gold PowerSeller status. How is he able to consistently sell such high-priced merchandise on eBay First of all, he knows his customers: he has identified them, he knows what they are looking for, and he has learned how to connect with their needs and tastes. My customers are professionals like lawyers, gynecologists, plastic surgeons, and dentists, he says. They like to exhibit their jewelry for men especially among professional peers. When they get together at their annual conventions, they compare their pens. He also knows what dedicated collectors like to hear, and he provides them with all the juicy details he can. A sample of one of his glowing sales descriptions is shown in Figure 3-1. Drew doesn t sell just any kind of pen. He sells rollerball and fountain pens that are manufactured in limited edition quantities using high-quality materials. Pen manufacturers like Montblanc have known for years that pens, like works of art, can actually gain value over time if they are produced in limited, numbered editions. An inspection of White Mountain Trading Company s listings for Michel Perchin pens turns up phrases that are certain to interest bidders, such as:
One of several last remaining . . . Brand new . . . An extremely limited edition . . . It is an extremely attractive and HIGHLY COLLECTIBLE item since being reported as SOLD OUT by the manufacturer . . .
Get the message This pen is rare because the manufacturer intended it to be that way. It s a really desirable object and, if you don t buy it now, it s going to be permanently unavailable to you. That s the message that Drew Friedman communicates, and it s one that connects with his market.
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