A Case Study In Maximizing AOS Average Order Size
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I was browsing headphones on Amazon as I’m considering dumping the Beats Pro - Limited Editon Monster Pro Detox Over-the-Ear Headphones headphones for something more mature that might fit my current setup better than the Beats are currently. I went from a 24-bit 96hz Digital Out source to a DAC solution thanks to my sweet wife, Mallory Smith. The Beats have served me well and this actually my 2nd pair.
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(Religious commenting brought to you by Andrew Zammit)
I have to add a line to defend them here because they are great at what they do best: adding a deep and rich EQ to plain sound sources i.e.) iPod, iPhone, computer audio-out, etc. etc. I would venture to say they’re the best I’ve listened to for this purpose actually.
There may be something better on the market for the same price or lower, but I would venture to say if you’re a Consumer of Electronics with decent taste and want the best sounding iPhone headphones without doing days of research, just buy the Beats. You won’t be disappointed.
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So, without boring you with any further details of the why’s of me being on Amazon, let’s start there and get to my point.
I’m motivated to browse headphones (I do this 1-2 times a week with something I know I will eventually pull the trigger on, research is half the benefit of getting the best out of your investments, right?!) So, I login to my account on Amazon.com and turn off 1-Click Purchasing before I get ahead of myself ;).
After my session of reading various reviews mixed with having other review websites open in separate tabs, etc. and comparing many side-by-side, looking at my budget and what my budget will be once I sell the equipment I have now, etc. I open Facebook in a tab and see something from Clint Chaudoin. The light bulb goes off and I remember the last time I made a comment publicly regarding headphones he gave me a hard time. So, what do I do? Open the main “Breadcrumb” Index for Headphones > Sort By Most Expensive.
I pick up the most expensive pair and paste the link to Clint’s Facebook wall just to pull his chain a bit. Then I start reading about the headphones and the Online Marketing part of me starts scrolling the page down to review what the viewers of this item have actually purchased on Amazon.
I had a feeling I wasn’t the only somewhat tech-savvy consumer shopping for headphones that found this set of cans by sorting by Most Expensive as it’s something I do often just to see the best before I start comparing what I’m actually going to buy.
So, most Amazon members buy (in Orange in the screenshot) Sennheiser SD202’s for less than $20.00.
(Off the record again, I had a chance to listen to these at an audio store and was very impressed. VERY SOLID cans. I sent a pair toSara Blake for helping me out when she needed headphones at the time. These are probably the best headphones you can buy under $50.00 — at least from what I’ve listened to!)
#2.) KOSS Branded Portapro cans with Case: $40.00
#3.) Sennheiser HD 650’s: $478.00 (wow!)
#4.) Cans with WOOD ACCENTS: $250.00 (Notice WOOD ACCENTS in my description here. Remember, the most expensive pair has wood accents as well! Do you think the Consumer realized they needed wood accents by searching for them first, or from Social Proof in realizing the most expensive pair has wood accents, and so should the pair they choose. Hey, my cans have WOOD ACCENTS! THAT’S WHAT THE $3,000 PAIR HAVE AS WELL!
#5.) Direct Out Cable (which Mal also got me… awesome piece!)
All of this is to describe a quick Case Study in Consumer Marketing and Sales. This scenario played out hundreds of times during my tenure at Circuit City as a salesman; my first job and primer to Sales.
As a Consumer we LOVE to check out what is the best, even though we may not be willing or able to afford the best; Consumer Electronics (and several other niches are the same here) excite Consumer Electronics Consumers. I’m sure Clint has had several “Regulars” in his local car audio joint just to see what he has new on the floor, or what RF might have out that’s cooler than last year’s model. Hell, they even make annual Rockford Fosgate product catalogs full of propaganda and other stories of Social Proof to get your excitement up and purchase (and consume) more and more and more. Consumers (I will admit I’m a Consumer Electronics Consumer, so what!?) love to check out new technology and mold their ideal of VALUE (Quality that fits their budget) to fit the most expensive, or best tech available in that particular vertical.
Before the opportunities, let’s consider this possibility:
So, this particular headphone manufacturer may not want to deal with anything but the best in their manufacturing. That’s one angle here, and albeit ignorant if their goal is to MAKE MORE MONEY; it might be the case that they could just care less. If that’s the case, more power to this headphone manufacturer and I’ll be asking for a loan out of those duffel bags full of Benjamins as soon as I’m done writing this up!
OPPORTUNITIES:
1. Create a line of headphones for the $300 budget.
Value! With the Market Research Amazon has given this company free of charge, they know after viewers have looked for the best on Amazon, they’re willing to spend $250 on another brand that is similar in that they both have WOOD ACCENTS. So, create a pair and even charge a premium, I’d say $350. Add wood accents, satisfy missed opportunities in the Direct game now, and secure leads for future sales when these buyers want to upgrade to the Big Daddy. BRAND LOYALTY! The other pair of Sennheisers selling for $500.. dominate that price vertical as well by offering a $600 model and including better Value in your proposition.
2. Create a line for the $50 budget that includes a case.
Even if you have to manufacture and White Label through a cheaper brand, #hustle hard on this and get in where the money’s at. Take control of the product and let some other company (like KOSS?) brand your product. This consumer obviously noticed that nice headphones come with a case, or that it was a good idea to find a pair with a case when they purchased— but weren’t serious inquiries at this time of purchase. $50 + a free lead/brand loyalty seems like a pretty good deal to me.
3. Cables & Accessories.
How about a premium cleaner for your $3K cans, gold-plated Astronaut-level wire harnesses, whatever. Sound cards for the computer. Accessories and up-sells. Someone is dropping $3K on a set of headphones don’t you think they want a Complete Solution?
These were my favorite customers at Circuit City years ago (and I am this kind of customer now). If you’re going to invest in Quality, you’re also going to invest in the Complete Solution to complete the entire system here. White label, partner, whatever it takes. Why aren’t you increasing your Average Price Per Ticket (Order) more easily.
Not only is Ultrasone missing this opportunity on the front-end, they’re leaving valuable leads on the table, brand advocates that want to get into an ultra high-end set of Cans (like myself!) but can’t yet afford them, and so much more money on the table every time someone checks out.
This table is crowded with players like Koss, @Sennheiser, FiiO, & others who are readily reaching their hand in and taking easy money and customers all generated by Ultrasone.
Questions? Comments on this? Am I off my Rocking Chair here or did I hit the nail on the head? Ultrasone, contact me if you’re ready to become more successful right now; or if you just want to send me a pair of those badass Ultrasone EDITION 10 Headphones.
One day I’ll buy a pair!
I’ll tag a few of you Friends & Colleagues who might add some feedback here in the comments as FB seems to have put a hiatus to my tagging in this post. Enjoy!
