How to Select a New Product for Your Business
You’ve started your own business, and you’re looking for new products to ramp up your sales. Congratulations! Being a position of growth is exciting. When determining what new products to offer your customers, you’ll want to consider factors such as the demand for the product, whether it will work well with your brand, and what kind of profits it can generate. Here are a few tips on how to select a new product for your business.
Gauge Your Own Level of Interest
Image via Flickr by Alessandro Bonvini
When business owners enjoy and believe in their products, that passion shines through to customers. Whether you intend to or not, products you love will be featured in your marketing, merchandising, and will be woven into everyday conversation with your customers. They will also be more fun for you to sell. And shouldn’t business be fun?
When considering a new product for your business, first determine whether it’s something you’d buy and use yourself. Is it something you’d feel good about selling to your friends and family? If you’re new to sales, get a feel for product marketing by working with a direct sales business to get started. Selling products for Amway gives you access to excellent training to help you get the knack for product marketing and selling with passion.
Know Your Customer
The key to being successful in your business is to know your customer. Who are they? What do they need? What do they desire? What are their buying habits? If your typical customer is a millennial woman, you’ll have a hard time selling a product that is geared toward a retired man. Research who your customers are and what they are looking to purchase.
If you have an online store, you should have plenty of data collected that will help you to determine your customer’s demographics and buying habits. If you have a brick-and-mortar store, take a few weeks to make note of what type of person comes in, when, and why. Will your new product fit in with your existing customer base?
Understand Your Brand
In addition to knowing who your customers are, it is important to understand your own brand. What is the image you are trying to convey with your products? If you are a subject matter expert in one type of item, do you have the skills to branch out into another?
Let’s look at an example. Say you run a brick-and-mortar stationery store that has successfully carved out a niche selling artisan greeting cards, wrapping paper, and ribbon. Your customers appreciate your selection, attention to detail, and the classic elegance of your store. If you’re looking for new products, you might consider branching out into fountain pens and a variety of inks, as these items would fit your brand. You will have less luck with something off-brand, such as inexpensive children’s party favors.
Research Profit Margins
Every business should focus on acquiring and selling products that can increase their profits. Whether you’re looking for handcrafted greeting cards or imported fidget spinners, it is critical that you are able to sell the product at a price (in your market, to your customers) that makes a profit for your business.
When calculating your potential profit margins, be sure to take into account all your fixed and variable costs such as staffing, marketing, rent, website hosting fees, and your own time. Your new product needs to earn a place on your shelves.
Build a Relationship With the Distributor
No matter which product you are adding to your business, it is important to have a great working relationship with the distributor. That distributor may be the creator of the product or could be a wholesale service. No matter who you’re working with, make sure the relationship will be a pleasant one. After all, you’ll be relying on this person for a part of your success!
Being in a position to select new products for your business is exciting. The potential for success increases if you are careful about selecting products. With these tips, you’ll be on your way to selling a product you love to customers who will appreciate it.