I am starting a simmer pot business through Shopify (all products are handmade). I decided to trial out the feasibility of my idea through a vending event at my University. I set a budget for less than $500 for inventory (I am currently looking at that as revenue with current inventory, price point, and working alone; the profit will be $50 at most).
The dilemma: I purchased customized stand-up pouches that are significantly smaller than I expected, which would not justify the price point I set. I considered utilizing the blank pouches that are the right size, but it does not have the professional look.
I am considering
A. taking a $450 loss for the event and utilizing the small pouches, giving them away for free in exchange for individuals completing a form with information to get leads for the store,
B. Selling the smaller pouches, taking a smaller loss ($100)
C. Use both the blank and customized ones (100 pouches) and sell them at $5, get a $50 profit.
Marketing Event, Sell At A Loss, or Discount Cost
byu/Green-Classroom6131 inEntrepreneur
Posted by Green-Classroom6131
2 Comments
I would go with C. You get real sales feedback, cover costs and learn what people are actually willing to pay. Leads are nice but nothing validates a business like someone pulling out their wallet.
I’d go with **C**. It lets you test real demand and see if people are willing to pay without turning the brand into a free giveaway. Early on learning what actually sells matters more than perfect packaging or leads that never convert.