How to know if your product will be successful

How to know if your product will be successful

A lot of us want to run a business that sells our own products, but we never really know if it's going to sell well or not.  There are a few things you can do in order to figure out if your product is going to be a success, or if it's going to flop.  One of the worst things for your moral is to think you have a great product, set up a business for it, then it comes to be a flop and no one in the world wants to purchase it   That's why you need to do extensive research in order to know if something is going to work or if it's something that needs to be thrown in the trash.

Figuring out if your product is going to be something good actually isn't that difficult.  You just need to do a few little steps and you can likely knock these out in a single day, and these things are:

Does your product solve a problem?
If you're not solving someone's problem, your product might not be the best thing to push right now.  This is because something that solves a problem has a spot to fill in someone's life, and people will gravitate towards it. 

Now, I'm not saying your product is bad if it isn't solving a problem, I'm just saying the products that fill a void or solve a problem are always the ones that do better after launch than the products that are simply duplicates of a competitor and are just trying to get a piece of the pie.

Is the market saturated with competition?
If you're launching a product and the first ten pages of Google are loaded with competitors, your market may be saturated.  Now, this might not be a bad thing, because depending on your niche, you could have a PPC goldmine   If you have a bunch of competition, but not many of them are running PPC campaigns to bring in new clients, it means you don't have much competition for ad space and that means your CPC will be rather low.  Having a low CPC in a saturated market usually means most of the competitors aren't paying for their website to be placed at the top of the search results, and that's where you swoop in and take all the sales

Now, if your industry is saturated with million dollar companies who are throwing hundreds of thousands at their PPC campaigns, you might want to rethink your product and approach because it's always going to be an uphill battle

Can you create it for 1/3 of what the competition sells for then undercut them?
Creating your own product can be pricey sometimes, but what you'll want to aim for is creating it for 1/3 of what the competition is selling theirs for, then undercutting their prices and bringing the new customers towards your own products.

Even if you're new the industry, people will choose to purchase from you if they can save some money.  Think about it, if you're creating a product for $15 and your competitor sells it for $45, you can come in and sell it for $40 and bring more clients to you instead of having them go to your competitors. 

If you get large enough, do you know how to outsource production?
You won't need to know this right at the beginning of your journey, but it's something you need to fiddle with over time in order to get the best deals with manufacturers who can churn out a lot of product in a short amount of time without lowering the quality you have at launch. 

There are a lot of Chinese companies where their sole purpose is to manufacture someone else's product then ship it to them wherever they want in the world.  I'm sure you've seen something that says "Made in China" if you live in the United States, and that's because we have a lot of manufacturing companies over there putting together our electronics, clothing, and pretty much anything else you can think of.  So, know where you can get your product made in the masses and you will be happy you did when you eventually get a massive wholesale order

Do you have the capital to brand and advertise your business/product?
People always think they are going to bootstrap their business, but that's not always the wisest thing to do because you could get more popular than your profits can handle.  If you get big enough, you will have retailers or big chain stores showing interest and they will put in purchase orders.  You don't get paid upfront for this type of order, sometimes you'll get paid 25% to 50% but not always, which means you will need capital to burn in order to get the order done.  Once the order is done you will then get paid the remainder of the balance, which is normal, but you might not be able to get the order done if you don't have funding.

You can get a credit line or a loan, but if you're already profitable I don't see why you couldn't get a nice credit line with the bank your business bank account is located.  The bank you hold your money at will know what your cash flow is like and they will give you a credit line based on that, they might even give you a larger credit line if you show them your purchase orders


In conclusion
Knowing if your product is going to win or flop is a great thing to understand so you aren't wasting your own time or anyone else's.  You could invest a ton of money in a product that flops, but that will hurt more than just your wallet, you will be depressed that it didn't work out and you will question yourself when it comes to every great idea you have from here on out.  Know what works and run with it, if there are red flags popping up when you're doing your research, be sure to stop in your tracks and move on to your next idea.


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Thanks!

Tommy Carey