Welcome To Jon Waraas dot Com
Getting All Set Up For Next Month
September 10th, 2009 by Jon Waraas


Ok so lately my goal has been to get my 2 backends (developerhut.com’s customer system and then my main e-com site that links all the e-com sites together) done before Oct 1st. There is no real reason why I set that date, but I figured that is about how long it will take me to get the final tweaks done so I am now telling myself that I need to get all the stuff below done before that date.

What I have been working on:

Developerhut.com Backend: The backend is almost done and the current version is running so smooth with little errors. The backend’s old outdated php code has almost been 100% replaced, and I am currently just been working on adding statistics and more options to edit customers orders and making it very easy someone with basic computer skills to manage the site. Right now I am still using myphpadmin a lot for looking at orders and sometimes editing them, I hope to be using my own backend 100% before Oct 1st.

Main site: This main site is the website that links all the e-com sites together. Now when I say “links” what I mean is that the site basically pulls up all of the e-commerces sites database info so my drop shippers can easily access that info, and that I can easily view stats and see what needs improving and what not. It has been very helpful for me to set this up, having just 1 place to view all of your e-com stats is great!

Today I went and talked to my accountant, I had him go over my backend and see if he could suggest any changes, well I have a whole new to-do list now, but after thats done then then that backend should be pretty much done.

Getting a building: I have been looking into this for sometime now, but lately I have been researching it even more. The main reason for me wanting to get my own warehouse is because I could then hire someone part time for support, which would take so much work off my hands. I could then move a few of my products in-house, which would literally increase my profit margin by 20% for the products (right now that product is at 70% profit margin after adwords spending). I am also paying one of my drop shippers something like 400-600$ in just drop ship fee’s, some drop shippers charge a fee to ship your goods, but that fee is really starting to add up and I rather use that money to hire my own packager.

My plan is to hire someone for customer support and train them for that. However I would also need them to do packaging and returns until I get enough volume to need someone strictly part time for that. So I would be hiring someone part time, and about 10 hours of the week they would be doing support work and the other 10 would be doing packaging. It would cost me about 800-900$ a month after all of the taxes, workers comp, etc. And if I move the product in-house that required the drop ship fee then that means I would only be spending 400-500$ more for someone part-time (500$ or so in drop ship fee’s – 900$ or so for monthly employee cost), and that would help me out sooo much.

So as you can see I have been researching and going over the numbers a lot lately. The only thing that is holding me back is that my current system/backend is not were I want it to be, but trust me, after Oct 1st everything will be and that is when I will be really looking for a office.

…Ok im done writing for today, I need to get back to support work. I will be writing a post on USPS api soon, hopefully some of you programmers that read this blog will chime in then :) thanks for reading.

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9 Comments

Comment by EarningStep
2009-09-10 19:29:40

great… i will looking forward for this.. i wonder what strategy you use to build seo for those site

 
Comment by gdubs
2009-09-10 23:52:35

70% profit is a pretty good margin for drop shipping, i have a site im adding products to right now and the margin is %25. I thought that was the margin that was pretty standard for drop shipping. I could only make that work with free organic traffic.
I guess i need to look around a little more

 
Comment by Synchronium
2009-09-11 03:24:26

70% is insane. Perhaps lower your prices a bit to get a higher volume of orders…

 
Comment by Jon Waraas
2009-09-11 05:44:29

70% is about my average actually, I try to shoot for 100% profit margin.

I would like to add that creating the main site to link all my e-com sites together helped increase that margin a lot, being able to login and look at my whole networks stats to see what needs to be done is a great advantage.

The company after all the expenses runs at about 20% profit margin, my goal is to get that up to 30% somehow heh.

The only problem with e-com is that the roi is lower, at 20% i have to make 10k just to profit 2k haha.

You must be in a competitive niche to be pulling 20% profit margin, that means that on a 120$ sale you will only make 20$, I would try to decrease your costs or find another way to advertise.

** remeber I use seo mostly so that helps the profit margin to

 
Comment by Essay
2009-09-11 14:11:51

You didn’t mention your website? LOL

 
Comment by Small Business Blog
2009-09-11 14:40:38

Really like the new writing format of the blog – these behind the scenes type posts are fantastic.

 
Comment by John
2009-09-13 14:24:53

Hi, All the best for your new plans. Hope everything will be done rightly very soon. I needed to inform you that from today evening I am unable to log in t my writer account. Everything was OK before that. Is it due to the site maintenance or anything else. I am very much anxious about that.

Comment by Jon Waraas
2009-09-14 01:03:49

I updated the code, there was an error and not its fixed.

 
 

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