Remedy #1 for product launches/start ups: "Get Real"
Remedy #1 for product launches/start ups: "Get Real"
Even this first step isn't simple -- in fact it requires 8 separate actions:
A. "Your new improvement, how important is it?" Is it disruptive technology, something that will obsolete everything out there? Or is is relatively minor? Or somewhere in between?
B. Is your product complex & expensive like a car? Or is it simple & inexpensive like a yoyo? Or is it somewhere in between?
C. "Your Company & its reputation" is a powerful factor in the sucess or failure of your product, however its not a guarantee. Remember the Edsel? Conversely, the Pet Rock was a big success -- it captured the public's fancy and sold millions. Does anyone remember who marketed the rock? If you bought one, did you care?
D. "Your prospects: who are they?" Are they well informed and particular who they buy from? Or like the Pet Rock, will they care? Or are they somewhere in between?
E. "Pricing -- what's it worth to the customer, how much can you charge?" This is one of the most-critical issues you face, and one that's critical to your company's profitability & perhaps survival. You must do extensive market research on just this issue alone. However, there are some general rules of thumb you can use:
* For package goods -- products that are blister packed or similarly packaged and hung on a Retailer's wall or rack -- the guideline is that manufacturing costs should not exceed 1/9 of selling price.
* For capital products used in industry, the rule of thumb is that design & manufacturing costs should not exceed 45% of selling price.
* For hand tools and the like, products are sold to retailers at a 30 - 50% discount. For the Big Boxes, it's a bit more.
* Manufacturer's Reps get a 12 - 20% discount on what they sell, depending on the type of product.
* Industrial Distributors usually get a 35% discount if they stock the product -- less if they don't.
F. "What type of market research should you use to learn the value of your product to the end-user?" Another complicated one that's too involved to get into. There are many types you can use, ranging from direct mail and the internet, to telephone or personal interviews, to focus groups, to beta testing -- or some or all of them.
G. "How do you prepare a questionnaire?" Another complicated one that's too involved to get into. You need to consult a pro because the way you frame the question can bias the results. Have you noticed the media like to ask: "How do you feel about. . ." This gets a totally different response than qustions that begin: "What do you think about. . ."
H. "How do you interpret the information you get from the research?" Here's one you can do yourself, BUT you should also get disinterested parties who you trust to give you their impressions.
Remember: The cardinal rule for all this is: "Take off those rose-colored glasses.
Remedy 1 for product launchesstart ups Get Real - To learn more about this author, visit Neil Mahoney's Website.
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This article discusses the first remedy that assures a successful product launch -- "Make sure there's a real & recognized need for your idea."
Even this first step isn't simple -- in fact it requires 8 separate actions:
A. "Your new improvement, how important is it?" Is it disruptive technology, something that will obsolete everything out there? Or is is relatively minor? Or somewhere in between?
B. Is your product complex & expensive like a car? Or is it simple & inexpensive like a yoyo? Or is it somewhere in between?
C. "Your Company & its reputation" is a powerful factor in the sucess or failure of your product, however its not a guarantee. Remember the Edsel? Conversely, the Pet Rock was a big success -- it captured the public's fancy and sold millions. Does anyone remember who marketed the rock? If you bought one, did you care?
D. "Your prospects: who are they?" Are they well informed and particular who they buy from? Or like the Pet Rock, will they care? Or are they somewhere in between?
E. "Pricing -- what's it worth to the customer, how much can you charge?" This is one of the most-critical issues you face, and one that's critical to your company's profitability & perhaps survival. You must do extensive market research on just this issue alone. However, there are some general rules of thumb you can use:
* For package goods -- products that are blister packed or similarly packaged and hung on a Retailer's wall or rack -- the guideline is that manufacturing costs should not exceed 1/9 of selling price.
* For capital products used in industry, the rule of thumb is that design & manufacturing costs should not exceed 45% of selling price.
* For hand tools and the like, products are sold to retailers at a 30 - 50% discount. For the Big Boxes, it's a bit more.
* Manufacturer's Reps get a 12 - 20% discount on what they sell, depending on the type of product.
* Industrial Distributors usually get a 35% discount if they stock the product -- less if they don't.
F. "What type of market research should you use to learn the value of your product to the end-user?" Another complicated one that's too involved to get into. There are many types you can use, ranging from direct mail and the internet, to telephone or personal interviews, to focus groups, to beta testing -- or some or all of them.
G. "How do you prepare a questionnaire?" Another complicated one that's too involved to get into. You need to consult a pro because the way you frame the question can bias the results. Have you noticed the media like to ask: "How do you feel about. . ." This gets a totally different response than qustions that begin: "What do you think about. . ."
H. "How do you interpret the information you get from the research?" Here's one you can do yourself, BUT you should also get disinterested parties who you trust to give you their impressions.
Remember: The cardinal rule for all this is: "Take off those rose-colored glasses.
Remedy 1 for product launchesstart ups Get Real - To learn more about this author, visit Neil Mahoney's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Staging DivaDebra Gould, aka The Staging DivaŽ, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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