Dp you want to be the smaller one, targeting niches and owning it? Or target the mass market, going online to save costs but joining group buy sites to increase volume sales?
There are now two kinds of businesses. One is starting to grow, the other is trying to keep plateauing.
The first one is the smaller-scale, niche-targeted business. These are the premium leather cases, premium clothing, eyewear, we see on the internet. Usually they ship to anywhere, because their niche isn’t just found in their local borders.
There other is the larger-scale, mass-marketed business. These are the goods we use everyday. Usually they are cheaper. Targeted towards everyone with money hoping that they become thrifty and choose the cheaper alternative.
The two schools of thought at war here are: a) to charge more and sell less (bigger margins) or b) to charge less and sell more (smaller margins).
There is no right choice among these two, in fact some companies try to marry both. But there are right questions to ask:
a) Charge more, sell less: Is your product in a league of its own? Can you continue to command your price for it in 2, 3, 5 years, even when competition comes in? How quickly can you adapt to trends especially if your product relies on what’s currently in the market?
b) Charge less, sell more: Will your market’s capacity to pay change due to any environmental factors? How high will your costs change in the next 2, 3, 5 years? Is it sustainable for you to keep going for the mass market?