"Selling for that price but not for having a great margin and being able to grow fast, just to pay all the logistics related to the product"
During these articles, we want to introduce some of our history, our business and our decisions, just to show that we are people behind this project.
The title is an interesting question that we faced in the very beginning,
We do have a good product. For us one of the best, not just for being an authentic Spanish Extra Virgin Olive Oil (EVOO) but for its properties related to the variety, so we were legitimized to offer a 500 ml glass bottle for around 15 pounds like other online companies.
It was about marketing, looking for a good-looking bottle and an amazing sticker which reflects why you have to pay that much. We even have some bottles at the office, which were the ones selected for that.
And from those, we had decided to bring this one.
This one was the most shocking one and we were working hard for a label which enhanced the quadrangular shape.
So, it looked like a great idea; We just had to create a good label, sending the product to the UK, selling and have a good profit in return.
However, selling a glass bottle in a foreign country has its difficulties. For us to sell there, we first have to send one or two pallets to a fulfilment centre and afterwards, a second shipment from the fulfilment centre to your home.
In our case, we chose the Amazon UK fulfilment centre, and it is curious how they work. Amazon is in charge of the shipping and you pay them for that, so they need to assure that the shipment of the product is safe. Otherwise, each time the product is broken they have to pay you back the product value.
For them to assure it, run a test, I am attaching some pics.
Here is the video.
So this was meaning that they will throw our fancy and expensive glass bottle from 1.2 m high to check that the bottle does not get broken or they would charge us a non-cheap fee in case we don´t pass.
As you can see what looked like an amazing idea of selling an expensive 500ml is not that great anymore. We found that we had to sell for that price but not for having a great margin and being able to grow fast, just to pay all the logistics related to the product.
That was not our plan!! we want to grow fast for bringing more products. Then, we had to pivot, so we started realising what about selling more than a Litre... in a Supermarket in the UK you won't ever find more than a litre size and at the same time, you won´t ever find an EVOO with the quality that we can offer.
Then, with this product, we can spend less proportionally in logistics and at the same time we can start focusing on those customers who love olive oil, that much to look for an alternative online and offering some advantages, a higher quality for a reasonable price, a size not found in the supermarket and heavy enough for feeling that delivering home it is just what you want and not something compulsory.
Here and at this point is when Dehesa Cabeza Del Toro started and this is our final product
I hope you enjoy reading my thoughts, please let me know your thoughts in the comments and I am sure that you have a different point of view, I will be glad to hear it.
In the next article, I will speak about how to design a label for a 3-litre tin can and it is not that easy as we thought in the first instance.
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