Multiplicity: All about Expanding your Product Line
12 tips on selecting the winning products
July 1, 2016
You've decided to add third-party's brands into your existing product line. So, what products should you consider? Where do you find them? Which step should you take next?
Choosing a product to sell can be a daunting task, especially, it seems that most common place goods are already over-saturated in the market. However, just because the market you want to penetrate is crowded with competitors doesn't mean you cannot prevail. With so many things to consider, here are 12 tips to help you select the "winning" products:
Synergy - Look for complementary items to pair with your existing products. (For example: Starbucks' $8 bundled lunch combo deal).
Product mix - Keep in mind your core identity, so you can build a consistent brand around all your products.
Target audience - Think of your existing customers (if you have any) first. Identify any particular groups of people or organizations that will benefit from the products you sell.
Think Globally - Look for niche products that have a strong potential across the world.
Market size - Make an estimation of the total number of target customers in the market. (For example: Research other businesses who have a profile similar to that your target customer).
Competitive landscape - Begin by identifying your biggest online and offline rivals.
Selling platforms - Consider options such as online, physical stores, affiliate programs, etc.
Marketing strategies - There are plenty of options available to promote your site which are affordable or even free.
Source of Goods - The best way is to search on the Internet.
Reliability of your suppliers - Large suppliers are generally reliable because they have enough resources and systems in place to make sure they can still deliver if anything goes wrong. However, you can often develop a closer relationship with small suppliers - especially if you are their main customer.
True cost of product - Knowing the true cost of an item is critical to help you identify your true profit margins.
Pricing - The biggest mistake many businesses make is to believe that price alone drives sales. Check out this article How to Price Your Products for more information.
"Don't find customers for your products, find products for your customers." -- Seth Godin