Reply To: PAB Question

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Andrew A

Hey Isaac,

I’ve had a few problems logging in to the forum but it’s sorted now, thanks for your reply.

That seems to be the a common theme with a lot of the products that I am looking at, the volumes over the last couple of months are making the cost of the first orders much higher than they would usually be.

I also understand the logic behind your answer regarding using the current monthly sales figures as opposed to using the March sales figures, which are much lower.

I have another question, I am currently looking at “ab straps”, which potentially looks like a good opportunity.

There is one main competitor selling 3085 units a month, $92,488 revenue a month. After this competitor, there are 5 – 6 other competitors selling near to or over $10,ooo a month, and then after this, the competitors in positions 10 – 15 are selling minimal amounts each month.

If I use the top selling competitors daily sales of 113 in my PAB, the first order costs are $15,000. Can I target the other top 9 competitors sales as these are much lower and when averaged out are only about 18 sales a day. Even if I use 25 sales a day in the PAB, the first order costs are much lower at $4382.40, so a big difference.

A quick summary of the product:

Selling price $25.99 ($4 lower than the top competitor)

Profit: 52%

ROI: 273%

COGS/w freight: $4.00

Launch costs: (based on average 25 sales per day in the PAB) 340 units – $2876.00

First order costs: 880 units – $4382.40

I have excluded the sales figures from the competitors on lines 6, 7, 8 as they are duplicates of the sellers on lines 1, 4, 5

Thanks and speak soon.