Any product you have ever bought, any merchandise you have ever heard of, began its life as an idea someone had. Smartphones, Drones, the list goes on and on: all of these things started as an idea. Some of the industry’s giants today got their start by coming up with an idea and selling that plan before they even discovered life as a product. That idea rattling around somewhere in the back of your mind may make you loaded someday! How? Read on!
Create a product
There’s more than one way to create a commodity. You can bring your original idea for a product to life, improve on a product that already exists, or find a market niche that is unserved because of the absence of an as-yet nonexistent commodity. You can meet a preexisting need or create a new one.
Getting things down on paper will help you plan out your commodity. You can get a better idea of how things might go in the real world than if the commodity remains solely in your mind. Think about these things: What is your product? What will your stock look like (the design is a vital part of marketing any new product, after all)? Will it be designed so that it will be competitive with what is already on the market?
The importance of design cannot be stated enough. Just think of the Drone (or, for that matter, any Go-Pro product). Its design has undoubtedly brought in as many consumers as functionality. Design is about more than looks, though. For instance, Steve Jobs worked against the idea of having a fan as a component of the latest generation of iMacs. There was a lot of engineering involved, but the result was a computer that manages heat more effectively and quietly.
Research the market
It’s great to have a product – but if you don’t have anyone to buy it, what use is your new product? You have to figure out who may be interested in your new product. Is there a market for it? will you have to do a lot of convincing to get people interested in your commodity, or will it fill a demand which already exists?
If you’re not yet sure what your product is going to be, do some market research into your target industry and look for needs that are going unfulfilled.
To sell anything, you’re going to need a marketing strategy in place. There is much more to this than merely shoving your product in the proverbial face of the public. Think about your stock and how it can compete with similar offerings.
Decide sales route.
How and where will you try to sell your product? This is going to affect almost every aspect of it: production, price, and so one.
- Will you be selling your commodity in stores, over the web, or both?
- Will you be selling directly to retailers or using an affiliate marketing program as your sales strategy?
- Will your pricing reflect the commissions you must pay to affiliates if you opt for that route?
- Will you offer bulk discounts?
- Most importantly, will the method of selling you choose to be able to sustain your business venture?
Set your pricing
Pricing is essential; you want to cover production costs, marketing, and the like yet still make a profit – all while remaining competitive in the marketplace. This is something of a balancing act and should be undertaken carefully.
Pricing should be a part of your sales strategy. Put a reasonable markup on your stock after making sure to cover all of the overhead expenses. It would be best if you made your pricing attractive to consumers, but not so cheap as to indicate that it is not worth paying a reasonable price for.
Supply and demand
A standby of economics, supply, and demand is in play in creating and marketing any product. You can only sell a product as long as you can produce it after all. Is there a sufficient supply of the needed materials to deliver your merchandise, and where will they come from? Do you need to create a demand for your new commodity, or does one already exist?
Keep in mind any changes in the market that may be coming. For instance, say you are selling a product which is an accessory for another product. Let’s take a cellphone as an example. What happens if the model of cellphone you manufacture goes out of production? This could cause you some trouble. Anticipating these kinds of changes can keep you afloat.
Always be aware of who your competition is and what they are doing. You can learn from how they behave in the market, and you may be able to find a way to improve how they do business to your own benefit.
Promoting your product
Once your merchandise is ready to make its entry into the market, you’re going to have to promote it. How will you advertise your new product? Where and to whom will you target your advertising? Is a website sufficient to promote your new commodity, or are more old fashioned methods called for? You will do well to continually evaluate and retool your marketing efforts to remain on top of market trends.