Newb questions about niche product line
Hi! I have some questions and this is new space to me so pardon my ignorance. I’m hoping you all can help me figure out if this is actually an opportunity or not. I also apologize for being incredibly vague or not thinking about things I don’t know.
I have discovered a line of products that are sold through authorized resellers of which I am one. I am allowed to sell on e-commerce platforms and direct to consumers and businesses for this product line. There are minimum advertised pricing policies I must abide by in order to do so but those are relatively flexible. It’s an electronics/computer diagnostic line of products.
Here’s an example: One of the common items in this product line is ranked approximately #325,000 in the electronics category. This product has an MSRP of about $1000 and is selling for approximately $920 currently (which is within the minimum advertised pricing policy from MSRP) from two other sellers on Amazon it looks like. Because of the extensive volume I already do with this product line, my cost on this product from manufacturer is around $696.
Some parts of this product line are physical and some are virtual. For example, there are various renewal support license subscription options. My profit margin is about the same whether it’s a $100 item or a $12,000 item.
There are very few online vendors for these products online including Shopify stores, etc. and the ones that there are sell for within dollars of each other and within tenths of a percentage point above the minimum advertised price policy limit in most cases. This means that I wouldn’t really be able to sell lower than they could. But I could offer a coupon to make my item the lowest price and be perfectly within limits of the minimum advertised price policy. It limits the pricing anywhere online or offline to no more than x% of the advertised price but allows you to sell it at any price you want – with a coupon for instance.
Are there are about 90 SKUs in this product line.
Given what I’ve told you, is this something worth continuing to invest my time in researching and getting off the ground? Are there things that I didn’t think about or didn’t mention? If so, please call me at and I will try to respond.
I apologize for rambling, but I hope that you all can give me some advice on this. Thank you so much!! 🙂
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