WELCOME TO SCOE
Presentation Title:
“CREATING UNIQUE PRODUCTS FOR
EBAY AND AMAZON WITH
PRIVATE LABELING AND PRODUCT BUNDLING”
WHO AM I?
• My Name: José Calero
• Our Company: LapWorks, Inc.
• Founded: April 1, 2000
• Product Category: Consumer Electronics
• Online Since: June 2001
• Online w/Amazon Since: July 2010
• Number of Products On Amazon: 90 Plus
• 2013 Sales: $1,070,000.00
• 2013 Net Operating Profit: 20%
WHY PRODUCT LABELING IS IMPORTANT
• Product labeling is important for many, many reasons. But first and
foremost is . . . .
• Registering your product or company's Intellectual Property on Amazon's
Brand Registry
• This would include patents, copy rights and trademarks
• Once registered, it works in your favor when a conflict arises with a
poacher
• Poachers who list under us don't usually copy your logos
• So if you're IP is registered w/Amazon it becomes the club you use to
remove the poacher
• Even if poacher has same exact product but without your branding, you
win the dispute
• The way to get over these poachers is to differentiate your products –
individualize them
• Poacher Defined: I call a company who lists their product under yours at a
cheaper price a poacher. Other names would be mugger, assailant and
robber
WHY PRODUCT LABELING IS IMPORTANT
(Cont’d)
NOTE: For those of you interested in pursuing a
Trademark inexpensively, Skip had an article in a recent
newsletter for a service that will process a Trademark
application with the USPTO for just $149.00. Hers's
their URL: http://www.mycorporation.com/
WHY PRODUCT LABELING IS IMPORTANT
(Cont’d)
• To deter competitors - show an image of your
logo and/or label on your product page
• Heard from a poacher: “would not have copied us
if we displayed our brand label on the product
• Logo labels for your products must look and feel
like they were created specifically for the product
– not an afterthought
• Label color, size, placement, font, shape, material,
adhesive are all important
WHY PRODUCT LABELING IS IMPORTANT
(Cont’d)
Source: knowthis.com
Title: Labeling – page 1
Most packages, whether final customer packaging or distribution packaging,
are imprinted with information intended to assist the customer. For consumer
products, labeling decisions are extremely important for the following
reasons.
• Captures Attention - Labels serve to capture the attention of shoppers The
use of catchy words may cause strolling customers to stop and evaluate
the product.
• Offers First Impression - The label is likely to be the first thing a new
customer sees and thus offers their first impression of the product.
• Provides Information - The label provides customers with product
information to aid their purchase decision or help improve the customer’s
experience when using the product (e.g., recipes).
WHY PRODUCT LABELING IS IMPORTANT
(Cont’d)
Source: knowthis.com
Title: Labeling – page 2
• Aids Purchasing - Labels generally include a universal product codes
(UPC) and, in some cases, radio frequency identification (RFID) tags,
that make it easy for resellers, such as retailers, to checkout
customers and manage inventory.
• Addresses Needs in Global Markets - For companies serving
international markets or diverse cultures within a single country,
bilingual or multilingual labels may be needed.
• Meets Legal Requirements - In some countries many products,
including food and pharmaceuticals, are required by law to contain
certain labels such as listing ingredients, providing nutritional
information or including usage warning information”.
WHAT'S A COUNTERFEIT AND
WHAT'S A KNOCK-OFF?
Source: Internet Retailer Magazine
Title: Direct From China
Date: August 2013
• A counterfeit item carries a federally registered
trademark and it's not made by the trademark owner
• A knock-off emulates the style and appearance of a
brand-name item, but doesn't include the trademarked
logo
HOW TO REMOVE A POACHER'S WEBSITE WHO’S
VIOLATED YOUR TRADEMARK
Source: Internet Retailer Magazine
Title: Direct From China
Date: August 2013
• “Taking advantage of the Digital Millennium Copyright Act of
1998, you can seek to take down an offending site for
trademark violations.”
• “The law enables the holder of a registered trademark to
petition a web hosting firm to close a site that's violating its
trademark. If a firm does not comply, it becomes liable for
legal damages.”
• We call this the nuclear solution for IP infringement
WHAT IS PRIVATE LABELING?
• Private labeling is another way to protect your products from those
pesky poachers
• Private label products and services are typically those
manufactured or provided by one company for offer under another
company's brand
• Generally private labeling requires higher minimum than normal
order quantities so it may not be right or everyone
• Another definition of “private label” is when the brand is owned
not by a manufacturer or producer but by a retailer or supplier /
distributor who get its goods made by a contract manufacturer
under its own label
• “Private Brand” is another name for private label
WHAT IS PRIVATE LABELING?
(Cont’d)
Source: WhiteHall Products - Specializing in private label products
Title: Private Labeling Made Easy
• “Private label products is one of the hottest trends in retail today! And,
why shouldn’t it be? Why would you want to sell someone else’s product
when you can sell your own?”
• “At WhiteHall Products, we can customize and create a private label for
your business (or customer) at no additional charge to you. So, it makes
perfect sense (and cents) to have your own private label these days.”
• “More and more businesses are getting away from the ‘national’ brands
and offering their customers a less expensive alternative through private
labeling.”
• “Though the public generally used to see private labels as low-cost
imitations of branded products, private labels have overcome this
reputation and now more businesses are offering private label products
these days.”
HOW WE MANAGE OUR PRIVATE LABELING
• Source: Lapworks, Inc.
• Title: How LapWorks Manages its Private Labeling and Branding
• Because we do so much work with China in particular, we have a
partner in Shenzhen, China who reworks all of our orders
• He applies our logo labels and bar code labels to each and every
product
• Our partner maintains an inventory of eight different size logo labels
depending on the application
• None of our 90 products being sold on Amazon leaves China without
our branding
• Our partner also produces custom packaging of chipboard or
cardboard boxes for our products in small quantities as needed
• We have been fortunate to find a partner in China who has been able
to help us grow our business
ADVANTAGES TO CUSTOMER OF BUNDLING
• Source: Upstream Commerce - The Retail Intelligence Company
• Title: Bundle of Joy
• Advantages of bundling include cost efficiency, market opportunities to
enhance profits, and more competitive pricing. Bundling might also
encourage customers to look to one single source for several solutions
• Bundling allows consumers to benefit from a single, value-oriented
purchase of complementary offerings
• There’s less confusion with studying (and ordering) several different
products at the same time.
• The consumer can recognize cost savings of as much as 7 to 15 percent
over the cost of purchasing the items separately
• The customer might enjoy additional discounts if they purchase larger
volumes or more items from a single supplier
• Some consumers dislike bundling of the type of services like phone, music,
and subscriptions, where they are required to order or receive a minimum
that they won’t use to the fullest."
EXAMPLES OF BUNDLES WE’VE CREATED
(Soft Grip iPad Handle)
Soft grip iPad Handle bundled with the Smart Cover and price increased and
sales maintained.
EXAMPLES OF BUNDLES WE’VE CREATED
(Wizard Desk Stand)
Wizard Desk Stand bundled with the larger MouzPad, Velcro straps, six elastic
book holders and price increased and sales maintained.
EXAMPLES OF BUNDLES WE’VE CREATED
(Shock Resistant iPad Case)
Smart Kids iPad Shock Resistant Case bundled with the Smart Cover and price
increased and sales maintained.
EXAMPLES OF BUNDLES WE’VE CREATED
(Armbot Tablet Mount)
Armbot Tablet Stand bundled with the C60 spring loaded holding bracket and
price kept the same and sales increased.
SCREEN SHOT OF THIS PAGE
HERE ARE 10 BUNDLING TECHNIQUES
AND ADVANTAGES (1 thru 5)
Source: Upstream Commerce - The Retail Intelligence Company
Title: 10 Ways Retailers Can Leverage Bundling Of Products To Drive Sales
• Pure bundling: Where you offer a group of products that are only
available as a bundle and aren't sold separately
• Mixed bundling: Where you offer products that are sold both as
bundles and as individual units)
• Cross industry bundling: Where you offer products from more than
one company that complement each other. Product bundling may
also incorporate products from multiple producers
• Premium bundling: Pursue strategies in which the bundled price is
actually higher than the total of the included products
• New - or lesser-product bundle: If you bundle a successful product
with a newer or less successful product; the stronger product will
help the other product find its way into a new market
HERE ARE 10 BUNDLING TECHNIQUES
AND ADVANTAGES (6 thru 10)
Source: Upstream Commerce - The Retail Intelligence Company
Title: 10 Ways Retailers Can Leverage Bundling Of Products To Drive Sales
•
•
•
•
•
Bundling increases speed: You can prepare and send out a package of bundled
products quicker than preparing a bunch of separate items and sending them
out after gathering them.
Bundling increases efficiency: When putting together the bundled
merchandise, your employees can focus on one trip down the warehouse aisle
to get the bundled package, as opposed to gathering individual products, one
at a time.
Bundling at a lower price point is an advertising opportunity: Lower price
point is a great opportunity to advertise this fact; in your outreach, you may
also touch potential customers who are focused solely on price.
Bundling leads to extra sales: With bundling, customers order and purchase
products they might not otherwise have considered or purchased.
Bundling is a competitive tactic: Product bundling not only can lead to more
customers and sales for you; it also makes it difficult for your competitors to
track what you are doing and compare to your prices.
5 BENEFITS OF BUNDLING (1 & 2)
Source: Experian
Title: The Benefits Of Bundling
While there are a few risks involved in offering bundled products , for the
most part, the benefits of bundling products are many:
1.
Enhanced customer loyalty
- Customers are less likely to go to the trouble of unbundling services in
order to switch providers.
- Customers feel more connected to your organization on multiple fronts.
(Both of these help to shield you from competitive displacement attempts
2.
Simplified customer experience
- Consumers enjoy the convenience of bundled services, which allows them
to manage multiple services with a single billing statement and a single
payment
- When money is tight, bundle customers will generally pay the entire
bill, as opposed to paying only part of the bill.
5 BENEFITS OF BUNDLING (3 thru 5)
Source: Experian
Title: The Benefits Of Bundling
3.
4.
5.
Save provider time and money
- Bundled billing reduces the number of bills sent each billing cycle, which
means less paperwork for you and your customers.
- Fewer bills sent also means fewer payments to process
Penetrate new markets
- Partnering with a company, who has a bigger footprint in a particular
market, allows you to leverage that partner’s existing customer base
- Bundling also can help you penetrate a new market with more
competitive price points.
Easier and less risky up-selling path for larger share of consumer
products and services
- The partner, already having an established relationship with the
consumer, will have an easier time up selling your product offerings to their
customer base.
4 FACTORS TO CONSIDER BEFORE
BUNDLING
Source: Brighter Minds Publishing
Title: The Importance Of Product Bundling
If the product combination is right, bundling will effectively open doors
to new marketing channels. The decision to bundle often involves
taking these four variables into consideration:
• Volume: Bundling typically increases unit sales volume
• Margins: Bundling can reduce margins or increase them
• Exposure: Bundling may offer new channel opportunities or
exposure to new potential customer
• Risk: If executed incorrectly, bundling may cannibalize more
profitable sales, resulting in lower contribution margins and
potential channel conflict
4 FACTORS TO CONSIDER BEFORE
BUNDLING (Cont'd)
Source: Brighter Minds Publishing
Title: The Importance Of Product Bundling
• These factors must be considered in terms of the revenue
opportunity and exposure potential bundles offer
• Determine if bundling has a place in your marketing plan
• And how it will provide value for your customer and your
organization
• It is important to be selective, but with the right bundle,
everyone can win
4 BUNDLING TAKEAWAYS FOR RETAILERS
Source: Upstream Commerce - The Retail Intelligence Company
Title: Four Bundling Takeaways for Retailers
• Increase unit sales volume
• Increase margins
• Offer new channel and cross-industry
opportunities
• Offer exposure to new potential customers
IN CLOSING . . . . . . . . . .
SOME FINAL NOTES ON BUNDLING
• Bundling makes it more difficult for your competitors
to gather pricing intelligence on your company and
your products
• Remember to use your own competitive pricing
intelligence tools to help you be aware of their prices
and information 24/7
• Don't cannibalize your own more profitable sales,
resulting in lower contribution margins and potential
channel conflict
• Be selective in what and how you market, but, with the
right bundle, you and the customer can both win
THAT'S IT FOR ME – I HAD FUN
– HOPE YOU DID TOO
ANY QUESTIONS?