johnnyfdk
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Milestone! My our first ever $10,000 day! Business to Business is the way to go!

Woohoo! I can't wait for Larissa to wake up so we can celebrate this, but our new store has gotten the biggest single sale I could have ever imagined.  But it wasn't from a customer...and it wasn't for someone's house. 

Welcome to the world of business to business sales!  In this post I'm going to talk about how I went from an average order size of $300 to over $1,000 all by focusing on businesses instead of individuals and how it works with my dropshipping store.

drop shipping success

I received my first order on Jul 25th 2013 and it was for $459.00. I was ecstatic, but it didn't come easily. I had exchanged emails with this customer back and forth and even had to call her, leaving a voicemail to arrange expedited shipping.

Since then, 99% of my orders have been online only and automated and I still focused on selling to individuals as I figured it was easier than trying to break into interior designers or businesses.  This morning I woke up extremely happy as I got a super large order.


dropshipping suppliers


The reason why I get more excited getting a single $1,000 and up order rather than two or three lower priced ordered that end up adding up close to $1k anyways is the large single orders are more profitable. The cost of doing business with 3 customers is 3x the cost of dealing with one customer, which includes the follow up, advertising, shipping, and other expenses. 

The costs of acquiring a customer worth $350 is pretty much the same as getting a customer that orders $10k+ in items, and personally emailing and keeping in touch with a few big customers is a lot easier than trying to personally answer emails from a hundred small clients.

Here's what I got from my main store:


does dropshipping work'

Here's what I we got with our new store:

make money dropshipping

It's crazy that I used to sell $100 products, then after having some success with Anton's course, I started pushing the limits and started selling $1,000 products, and now this!

The best thing about this is that it's from the store Larissa and I just built earlier this year.  We created it during our New Store 30 Day Challenge and so far it's been easier to grow than my main store, and it's fun that we get to do it as a couple.

johnny and larissa


Downsides to selling big ticket items

The reason why I wouldn't encourage everyone to start selling expensive items straight away is they take a lot more customer service, and are often B2B sales.  Also with big items you may have to accept a purchase order or deliver the item first, giving the business 30 days to pay you for it.

Our $12k order was from a contractor who called and emailed us over two months ago asking for a price quote.  The promised the world saying they would need more orders in the future and tried to get us to sell the items at our wholesale price, but instead of falling in to a trap of a money war, we just gave them an extremely fair price, and stuck to it.

If you become known as the company that gives deep discounts, your customers will assuming your normal prices are a rip off and always want to bargain down.

business to business


So even though I'm welcoming B2B sales, I still think it's far easier to first focus on selling mid priced items to consumers and having the large business orders come in once in a while.  We'll definitely focus on trying to get more sales from companies is it's a lot of money but at least for our, our bread and butter is still B2C, or Business (which is our dropshipping store) to the Consumer.

Best of luck to everyone in your businesses! Let me know what your business revenue day and what your aims are for this year.

P.S. if you're thinking about starting your own dropshipping store, I highly recommend Anton's Dropshipping Course as that's the system both Larissa and I follow for all of our stores.

Johnny

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  1. woohoo nailed it!
    5 figure days are big, keep em coming :P

    ReplyDelete
    Replies
    1. Hey thanks a ton Dvir! I have to wait for the invoice to come in to see what our actual product is as I think we might have given a bit too big of a discount on top of free shipping to have made it a home run. But it'll still be a decent amount of profit and a new hopefully repeat buyer!

      Delete
  2. Hi, Johnny,

    I'm a B2B saleswoman during my day job and am looking to transition in to dropshipping. I'm not sure if I'll go B2B right away, but I do have this question: is there some sort of standard discount structure on certain products, or certain dollar amounts? (Kind of in the same way that there are "tipping" guides.") My boss gives customers discounts sometimes but his discounting scheme seems arbitrary. I'm wondering if there are standard discounting "guidelines" out there - quantity price breaks, etc. Let me know! Thanks!

    ReplyDelete
    Replies
    1. Hey I think it depends on how big the company is and if they are bidding with others or they are the only potential supplier. 99% of the time my B2B sales are just our flat price + free shipping and they are okay with it as we pretty much sell for as cheap as we are willing to go.

      As from our suppliers, our average margins are 25-35% off of retail prices and it's usually tiered depending on how much we sell per year.

      Delete

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