Saturday, August 23, 2008

Paying for advertisements and commissions

Consumers sometimes forget that the advertising and marketing costs are always included in the cost of the water purifier that they buy. So if you see lots of advertisements or lots of outlets selling the same item, chances are that the sales commission is between 40-60%.

If advertising takes up 10% and sales commission another 40%, that leaves just 30% left to cover admin, financing, and transport, leaving just 20% as the actual cost of the water filter that you are purchasing.

When I told a friend that I earn just 20% sales commission, she proudly bosted that her salesmen earn over 50% commissions. Simply means her product is really cheap, but the cost added up due to her advertising costs and her sales commssions paid out.

Ultimately you the consumer pays for it, so how would you feel buying a water system for RM3,000 and the actual cost was just RM600.

The Seagull IV water purifier is fully imported from General Ecology in USA and comes with a 10 year guarantee. Selling in ebay at just RM2,997, your capital cost is less than RM300 yearly. It's the best deal, considering the rest of the units in the market are all locally made and only come with a 1 year guarantee.

Visit www.kingkiraal.com/ebay/ to invest in a micro-biological Seagull IV water purifier, that has 2 clinical studies and certified by the EPA in USA.

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