Comments on: Low Margin Products vs. High Margin Products

By: Isaac Efe

Isaac Efe — Mon, 01 Aug 2011 12:06:25 +0000

thanks for the post, has really helped me with my study on business market operations.

By: gadis

gadis — Sun, 30 Aug 2009 14:36:07 +0000

thanks for share, you posting is great… i like this post

By: Renae

Renae — Tue, 28 Jul 2009 20:49:50 +0000

David,

Are you the author of 7 day profits?

By: David Bullock

David Bullock — Wed, 18 Mar 2009 10:35:22 +0000

@Gabe

Information products do have high margins. And you are right that anyone can copy the printed material (or ebook). The entry product is the short game. The long game is the relationship and the project.

The upsells to specific result that can be produced with the information is the distinguishing factor. Anyone can talk about a subject, but the one who can create a result in the marketplace with the information creates a barrier to entry. Case in point. A book that upsells to consulting that upsells to a project, is a typical cycle.

The book has a low barrier to entry. But as the client moves up the sales cycle, the barrier of entry becomes greater.

@ A Hodges

Very interesting application. Turning data into information is the name of the game. Excellent example of a creating value via technology. Thank you.

By: A Hodges

A Hodges — Tue, 17 Mar 2009 15:31:23 +0000

Technology -oriented products and services tend to yield high-margin revenue streams by automating many processes and reducing a lot of overhead. A good example is our product, WorkXpress – custom software without programming. Vendors or Value-Added-Resellers (VARs) can provide custom applications and services faster and cheaper than with traditional, code-based methods. Anyone looking for a high-margin revenue stream and interested in becoming a software provider should give this product a close look!

Best wishes to all of you in your endeavors!

By: Gabe

Gabe — Wed, 07 Jan 2009 19:04:27 +0000

"The biggest high margin products are information based: Consulting, Training and IP fall into that category. The buyer is not buying the cost of the paper, ink and printing. They are buying the information contained within."

Agree, but these categories also have low barrier to entries, which makes it harder to distinguish from the competition.

By: David Bullock

David Bullock — Fri, 28 Nov 2008 00:39:08 +0000

Solomon:

It is not as hard as you are thinking. It is a matter of seeing what others don't. But, nothing to handle in the "blog" environment. Let's connect.

By: Solomon Neuhardt

Solomon Neuhardt — Fri, 28 Nov 2008 00:33:51 +0000

@David – Great question David but frankly I dont have any idea. If consulting or training hinges on me figuring this out I could be in for a very long haul.

By: David Bullock

David Bullock — Thu, 27 Nov 2008 23:34:31 +0000

@Solomon – The question to answer is, "What is the big problem in your industry that you have a solution for?"

Answer that question and you have your product. Now: volume, cost and promotion are your concern.

By: Solomon Neuhardt

Solomon Neuhardt — Thu, 27 Nov 2008 02:49:12 +0000

As an attorney, how do I go about figuring out what kind of consulting or training I can do? I do alot of consulting every day with existing clients but my work is very high stress so I am not looking to grow my law firm.