About running an online business
Dear Haolejohn:
How true and I really appreciate your comments.
When I said New England Music Store does all the work ourselves, I guess I should have mentioned the business aspect as well. There is a lot more effort (for a lack of a better word) when it comes to running an online business.
There is the accounting and bookkeeping, Federal taxes and maintaining the website. Do you hire an accountant to do the accounting and bookkeeping, we don’t. Do you hire someone to maintain your website, we don’t. We make every effort to ensure the information on our website is accurate as possible. This includes making sure the pictures representing each item is as accurate as possible (we get them from our suppliers), availability of the items and if there are any changes to the products are just some items that need to be addressed. I saw on some websites selling Makai ukuleles depicting friction peg tuners where they are now geared tuners and the other way around. I also saw some websites where they mentioned an item was out of stock when it was clearly available, go figure. What about the policy page? I saw some that I thought were ambiguous or non-existing. How are potential customers going to know exactly what your policy is if it is ambiguous or non-existing?
Then there is the issue of hosting the website. How much should you pay, $29.99 per month? Can you strike up a deal, we did. Then there is the URL and how much should you pay; $2.99 per month? Here we entered into a really great deal on our hosting and URL fees. We don’t have to worry about these costs for a long time.
For those familiar with Search Engine Optimization, who is going to that? What about submitting your website to search directories like DMOZ? Do you pay someone, we don’t, we do it. What about the sitemap.xml, that needs to maintained and submitted to the big four search engines, who does that? We do.
In addition, there is writing articles and blogs. Who is going to do that? Do you hire someone or do it yourself? Then there is Google Merchant that also needs to be maintained. Do you pay someone to do that, we don’t.
Then there is the credit card processing. Authorize.net charges a monthly fee plus if the customer has any perks associated with the credit card there is an additional charge. Then you have the Merchant Provider and there could be another monthly fee, at least the one we had did. So there are two monthly fees, even if you don’t make a sale.
Then there is the profit margin. What is going to be: 20%, 30% 40% and still remain competitive.
So as you can see if you have to hire someone to handle some or all these activities, it costs money, right? If you can do this as much as possible, this lowers your overhead costs, at least I think so. This is what I meant by working smart, nothing more than that. It was not to imply other retailers are doing things less efficiently, that is strictly up to each retailer how to run their business.
Yes, this takes effort and time, but if you enjoy what you are doing, like we do, then it isn’t so bad. One step at a time and you be surprised what can be accomplished.
Once again, Haolejohn, thank you for post.
From all of us at New England Music Store happy strumming!