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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: 505
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
rock
#11 Posted : Tuesday, November 06, 2012 4:28:24 PM
Rank: Veteran


Joined: 2/25/2009
Posts: 973
Lemmie give a practical example; I desire a certain wazualet..and..i will demand for her number at the next mbuzi! smile
2012
#12 Posted : Tuesday, November 06, 2012 5:03:12 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
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.



Never do a hire purchase on clothes. People are less happier with clothes the second time they wear them (fashion and appeal depreciation). Also wear and tear is high. Only do hire purchase on wedding suits and don't release before payment is completed.

BBI will solve it
:)
madhaquer
#13 Posted : Thursday, November 08, 2012 12:12:39 PM
Rank: Member


Joined: 11/10/2010
Posts: 281
Location: Nairobi
S.Mutaga III wrote:
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.


This seems like a problem with marketing and targeting.

If 1 out of 8 inquiries a day leads to a sale (Which I think is not bad) then you need to move to a more visible location where you also have more walk in traffic. Imagine if you got 150 people to walk into the shop daily.... At some point the dynamics change depending on the quality, price, customer service, fashion etc... but you need really good visibility to sell to strangers.

The other bit is targeting. Pick the group you want to sell to and have a marketing plan targeted at them. Build a small website with your designs and drive traffic there, use FB, email, etc.. to get your existing customers to shout about you.

Forget about the credit thing. If people desire something, you need to make them feel that it is within their grasp.

Let them know it is affordable (I hope your products are), others in their class/status are buying too, it is fashionable they will find it worth it.

If you do installments, it's deposit first collect on final payment.
kryptonite
#14 Posted : Thursday, November 08, 2012 12:54:45 PM
Rank: Member


Joined: 2/1/2010
Posts: 272
Location: Nairobi
@S.Mutaga III
Consider giving reasonable discounts to customers who refer their friends.This could then be developed into a loyalty program of sorts once you gain critical mass.

Print out fliers and distribute where your target market frequents a lot

All the best.
The harder you work, the luckier you get
chemos
#15 Posted : Thursday, November 08, 2012 1:40:49 PM
Rank: Elder


Joined: 11/28/2006
Posts: 1,799
rock wrote:
Lemmie give a practical example; I desire a certain wazualet..and..i will demand for her number at the next mbuzi! smile



Famooz is taken.. Source for another market..smile
rock
#16 Posted : Thursday, November 08, 2012 3:33:46 PM
Rank: Veteran


Joined: 2/25/2009
Posts: 973
chemos wrote:
rock wrote:
Lemmie give a practical example; I desire a certain wazualet..and..i will demand for her number at the next mbuzi! smile



Famooz is taken.. Source for another market..smile

Shame on you Hehehe..Will only relent the day i see her say "I do" ..and will shamelessly still keep my fingers crossed Pray
jaggernaut
#17 Posted : Thursday, November 08, 2012 6:38:08 PM
Rank: Elder


Joined: 10/9/2008
Posts: 5,389
rock wrote:
chemos wrote:
rock wrote:
Lemmie give a practical example; I desire a certain wazualet..and..i will demand for her number at the next mbuzi! smile



Famooz is taken.. Source for another market..smile

Shame on you Hehehe..Will only relent the day i see her say "I do" ..and will shamelessly still keep my fingers crossed Pray

And even after she's said 'I do' you can always engineer a divorce.
Drunkard
#18 Posted : Thursday, November 08, 2012 8:14:32 PM
Rank: User


Joined: 5/3/2011
Posts: 559
Maybe you were in the wrong business!
newfarer
#19 Posted : Thursday, November 08, 2012 8:43:32 PM
Rank: Elder


Joined: 3/19/2010
Posts: 3,504
Location: Uganda
S.Mutaga III wrote:
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?..

I guess you didn't get deadpoet concept here.
the customer pays in instalments and takes his goods after the final payment
punda amecheka
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