Determine if your product is profitable before you make it
Determine if your product is profitable before you make it
The first step is to identify your target market. Who needs your product or your service? The answer to this question will help you answer the question, "To whom are you going to sell your product or service?"
If you can't find an answer to these questions, you should abandon your business idea for a better one.
Conduct a Saleability Study
You can save tons of money if you take the time to do a study on the saleability of your product before you actually mass-produce and distribute it.
A simple survey asking people who belong to your target market (a random sample would be ideal) the question “would you be interested in buying this product or availing of this service in case it becomes available?” could save you from a very expensive mistake.
Conduct a Profitability Study
Your target market may be interested in your product or service, but are they interested enough to purchase or avail of it at your asking price? Thus, you have to analyse how much money and resources you'll need for producing and distributing your product or for offering and delivering your service.
Basically, you want to determine if your product or service can be produced or offered at a cost that will let you sell it for a large margin of profit.
Conduct a Competitive Study
Even if you can produce your products or offer your service at a rate that your target market can afford, this won't be enough if your price is not competitive. Even if your target clients are willing to pay $1,000 for a full online marketing service package, they are not likely to do this if they can get a comparable service for a lower price.
Starting a business requires deliberation and planning. Isn't it much more reassuring to know that you're headed for success before you take the first step? Thus, before you begin your new business venture, let a professional evaluate the profit potential of your business idea.
Determine if your product is profitable before you make it - To learn more about this author, visit Mark Gwilliam's Website.
Like this article? Share it with your friends
Identify Your Target Market
The first step is to identify your target market. Who needs your product or your service? The answer to this question will help you answer the question, "To whom are you going to sell your product or service?"
If you can't find an answer to these questions, you should abandon your business idea for a better one.
Conduct a Saleability Study
You can save tons of money if you take the time to do a study on the saleability of your product before you actually mass-produce and distribute it.
A simple survey asking people who belong to your target market (a random sample would be ideal) the question “would you be interested in buying this product or availing of this service in case it becomes available?” could save you from a very expensive mistake.
Conduct a Profitability Study
Your target market may be interested in your product or service, but are they interested enough to purchase or avail of it at your asking price? Thus, you have to analyse how much money and resources you'll need for producing and distributing your product or for offering and delivering your service.
Basically, you want to determine if your product or service can be produced or offered at a cost that will let you sell it for a large margin of profit.
Conduct a Competitive Study
Even if you can produce your products or offer your service at a rate that your target market can afford, this won't be enough if your price is not competitive. Even if your target clients are willing to pay $1,000 for a full online marketing service package, they are not likely to do this if they can get a comparable service for a lower price.
Starting a business requires deliberation and planning. Isn't it much more reassuring to know that you're headed for success before you take the first step? Thus, before you begin your new business venture, let a professional evaluate the profit potential of your business idea.
Determine if your product is profitable before you make it - To learn more about this author, visit Mark Gwilliam's Website.
Like this article? Share it with your friends
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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