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How do I convert Desire into Demand?
S.Mutaga III
#1 Posted : Tuesday, November 06, 2012 12:59:18 PM
Rank: Member

Joined: 3/26/2012
Posts: 830
A while ago,in many of my campus side-hustles,i decided to start a business...mainly clothes retailing. I sourced for good designer clothes from town and stocked my shop. Customers would flock and sometimes it gave me the illusion that I was actually going to make a lot of money. As I went through my books of account,I discovered that I would only sell an average of five items a day. The total number of customers who would express interest but not buy were very many. For every 8 customers,only one would buy. I managed to break even but quit the business as the returns were not reasonable. I have been analyzing how I could have turned that desire for my products into actual demand. These are my findings:
:- Move to a location with high networth individuals who can afford designer clothes because they are a bit expensive.
:- Source for a cheaper source of the clothes so as to reduce the unit sale price and make it affordable.
:- Use online marketting so as to reach all consumers regardless of their disposable income.
.....wazua has great minds. That is why I would greately appreciate if you gave me other hints of how to change that desire into demand. I want to be fully armed with knowledge before I get back into that line of business. Thanks in advance.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
deadpoet
#2 Posted : Tuesday, November 06, 2012 1:14:11 PM
Rank: Member

Joined: 9/27/2006
Posts: 506
Did you consider offering fractional payments, like a hire purchase scheme?

For example, the customers could pay off an item by giving you 200 bob a week or something.
S.Mutaga III
#3 Posted : Tuesday, November 06, 2012 1:20:09 PM
Rank: Member

Joined: 3/26/2012
Posts: 830
deadpoet wrote:
Did you consider offering fractional payments, like a hire purchase scheme?

For example, the customers could pay off an item by giving you 200 bob a week or something.

the problem with hire purchase is the trustworthyness of the consumer. You cant trust a customer whereas they are utilising a good they have not fully paid for. Many are visitors or passers-by...hence hire purchase is not feasible. There is also this thought that nobody can buy clothes via hire purchase...and what security do they leave to guarantee you payment?..
A successful man is not he who gets the best, it is he who makes the best from what he gets.
ChessMaster
#4 Posted : Tuesday, November 06, 2012 1:22:06 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
What do you mean turn desire into demand? Demand for the products or turn desire into actual sales?
Uncertainty is certain.Let go
S.Mutaga III
#5 Posted : Tuesday, November 06, 2012 1:26:14 PM
Rank: Member

Joined: 3/26/2012
Posts: 830
ChessMaster wrote:
What do you mean turn desire into demand? Demand for the products or turn desire into actual sales?

Desire:- a situation where a consumer is willing to buy a good but is not able due to his/her budget constraint.
Demand:- a situation where a consumer is willing and able to buy a good at the quoted price..
.....with demand,sales follow automatically.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
ChessMaster
#6 Posted : Tuesday, November 06, 2012 1:46:33 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I think your findings were right. The way you have described desire, I can't see how you can be able to turn it into demand unless you reduce the price of your goods. Demand = Willing and able buyer. Desire = Willing but unable buyer. My advice, focus on the demand. Understand what your items are offering compared to the market and what value the actual buyers find in your products. A consumer maybe financially able to buy your product but not willing because they don't see the value in it. A friend of mine was in such a situation and he started offering something slight customized. Sales went up.Ironically he ended up selling to other retailers who were being pestered by the demand his products we making.
Uncertainty is certain.Let go
maina20
#7 Posted : Tuesday, November 06, 2012 3:05:04 PM
Rank: Member

Joined: 7/21/2010
Posts: 249
Location: nairobi
S.Mutaga III wrote:
A while ago,in many of my campus side-hustles,i decided to start a business...mainly clothes retailing. I sourced for good designer clothes from town and stocked my shop. Customers would flock and sometimes it gave me the illusion that I was actually going to make a lot of money. As I went through my books of account,I discovered that I would only sell an average of five items a day. The total number of customers who would express interest but not buy were very many. For every 8 customers,only one would buy. I managed to break even but quit the business as the returns were not reasonable. I have been analyzing how I could have turned that desire for my products into actual demand. These are my findings:
:- Move to a location with high networth individuals who can afford designer clothes because they are a bit expensive.
:- Source for a cheaper source of the clothes so as to reduce the unit sale price and make it affordable.
:- Use online marketting so as to reach all consumers regardless of their disposable income.
.....wazua has great minds. That is why I would greately appreciate if you gave me other hints of how to change that desire into demand. I want to be fully armed with knowledge before I get back into that line of business. Thanks in advance.

how long did the business last? I guess your findings holds the key to success.... also add networking... i can also refer two or 3 customers in future.... i also think return customers take time, say 3 months subject to budget or windfall to get more clothes...patience is a real driver in business!
..desire to succeed is always fighting with fear of failure..
kentimz
#8 Posted : Tuesday, November 06, 2012 3:25:25 PM
Rank: Hello

Joined: 11/6/2012
Posts: 1
Location: Nairobi
Shame on you wait!!may b u neva gave urself enough grace period(that time when the business has no return on investment)i believe with proper marketing tactics,the business wud be super by now.U were lucky u had an average of 5 customers a day,leave alone window shoppers.Anyway for now we need to know how long the business lasted...so as to give concrete advice.
I would not waste my life in friction when it could be turned into momentum.
Mukiri
#9 Posted : Tuesday, November 06, 2012 3:47:22 PM
Rank: Elder

Joined: 7/11/2012
Posts: 5,222
I hope you take this the right way. I joined Form 1 and studied for a few months. I then realised that
1. I didn't know the answers to the KCSE questions that year
2. I might have joined the wrong school
3. *insert any other that I left out*

Boss, a business is started with a feasibility study.
If you find the business viable, do a business plan.
Most importantly KYC. Know your customer. Kerubo would have told you, if you don't want your nose pinched, you should know people!smile
Know your strengths and weakness. Patience is a virtue, a gift from above. If you don't have it, you should get down on your knees and pray your God for it. Something about Rome not being built in a ...

Proverbs 19:21
ChessMaster
#10 Posted : Tuesday, November 06, 2012 4:14:32 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I think he's on the path to success. He started a business. Didn't work out but he wants to get back in and is seeking advice to make it better.Great spirit
Uncertainty is certain.Let go
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