Points to Ponder When Selecting New Products for Your Business

In order for your small business to expand, you need to introduce new products every now and then. But just introducing a new product without the proper research could prove to be disastrous for your business’ reputation - and finances.

Here are some points to ponder when selecting new products for your business.

Your New Product Should Be Within Your Business Parameters

Your new products should be related to your business format, since you will already have existing clientele for your products.

They should not be so radically different that your clients get confused as to the path in which your business is going. If they are totally different than your existing products, then it would be better to start a separate company or division – and then start marketing those products.

There Should Be a Need for That Product

You will need to conduct a survey to find out the demand for any new product that you are planning to offer.

If other companies are already selling that product or a similar one, then you will also need to find out the price that they are selling it for. The demand for the product should be high enough for you to step into the market with it and be successful, even if others are already selling it.

Know the Profit Involved

Once you have decided on a particular product to add to your offerings, you will now need to calculate the purchase price, add up the expenses involved in procuring and storing it and then add your profit margin in, along with the cost involved in shipping it to your clients.

You will now have to compare this price with the market rate at which it is sold, in case your competitors are also selling the same product. If you feel that you can earn a profit, or if your survey indicates a rise in demand, then you can add that product to your list.

Compare the Rates and Features of Related Products

If there are products similar to yours already available on the market, then compare the prices along with the features before deciding to add it to your existing lineup.

If your product has better features at a lower price, then you could have a winner in your hands. You will however, need to point out these features to your target audience. If your new product can solve any problems related to the previous products, then your clients will definitely be interested in purchasing it.

Get Your After-Sales Service Ready

If your new product requires any after-sales service, then you will also have to ensure that your after-sales service department is ready to handle any unexpected problems that might crop up once sales have started to roll in.

You will have to train your staff and also incorporate these costs into you’re the product price. Not having this department ready can mar your reputation and keep the complaints keep piling up.

Test Market Your new Product

If you need more feedback, you can test-market your new product to some of your select clients and get their feedback before launching it officially. This will provide you with some time to weed out any defects, bugs or any other problems.

Take the above points into consider so that any new product that you launch meets with success. With competition getting tough, it is very important to have a winning new product every time.

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