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Your Own Home Shopping Show
TV marketing is the new dominant form of distributing products from the
source directly to the end user. It's the new electronic mall that brings
the retail stores right to your living room.
LONG-FORMATS
Half-hour shows that hack products from screwdrivers and shampoos to exercise
equipment and how-to programs is not at all a new concept. Afterall, during
its infancy, advertising was what television was all about.
These long-form ads, now commonly called Infomercials, has fast become the
new growth area in mail order marketing.
CATALOG FORMAT
Unlike infomercials that sell only a single product throughout the 30-minute
show, the new twist in TV retailing is the catalogue format. Here, the
producer of the infomercial offers products from different sources.
Independent producers are now putting together halfhour shows that showcase
"theme" products as in a catalog. There are shows that feature jewelry,
audio CDs, electronic items, clothing, etc.
The idea is to present uncommon products that appeal to your target market.
These products may be from different manufacturers or importers who will give
you the exclusive rights to market their products on television.
CHARGING A BASE FEE
You can charge these manufacturers a base fee for featuring their products on
your Home Shopping Show. Considering that their exposure on TV will give
their products visibility that can help their regular retail and other
marketing efforts, a base fee for their participation is essential and
reasonable.
This fee can offset the cost of your production. For example, if you have
15 products that will pay you $750 each, you'll make $11,250. This basic fee
can more than pay for a simple broadcast-quality production finished on
3/4-inch U-Matic video system.
PERCENTAGE OF SALE
In addition to the basic fee, you can structure your pricing wherein you
can collect anywhere from 10% to as much as 25% of the gross sales for each
and every product you feature in your show. Ideally, whatever percentage
you charge as your margin should pay for your airtime cost plus give you a
decent profit.
The order taking can be done by an independent service which you must hire.
Orders received are forwarded to the respective manufacturers who drop-ship
the merchandise to the buyer.