© 2008 Dream Merchant • 2309 Torrance Blvd. #104, Torrance, CA 90501 (310) 328-1925 email: Jkm316@aol.com
Service Issues May be Your Biggest Product Development Challenge.
By James F. Riordan
Without a doubt, servicing of a product can be one of the biggest headaches you will have. And the more complex the product, the worse the nightmare becomes.
Winning products are those that do not require service or can be serviced easily by the end user.
The service factor can easily be a three-fold nightmare. First, a store buyer can perceive the product to be one that may require servicing just to keep the store "demonstrator model" up and running, and may decide not to stock the product for that reason.
Secondly, fear of service problems can affect overall sales of the product. The consumer may PERCEIVE that servicing will be a problem and therefore make a decision not to purchase the product until it is proven in the marketplace. As a result, your product introduction period to becomes longer.
Thirdly, it can become very costly for you to stock service centers with the equipment and parts necessary to do warranty repairs, etc.
In simple terms, a product that will require servicing generally faces a longer introductory period where costs are high and profits are low.
The upside is that a product requiring frequent or "interval" servicing and/or parts replacement, represents an additional profit opportunity for the entrepreneur. This is true so long as the target audience perceives that the servicing is necessary and that the benefits of owning and using the product outweigh the cost and hassle of having the servicing done. A good example of such a product is a copy machine. Certainly, I do not enjoy paying for the occasional parts and service, but the benefits of having my own copy machine far outweigh the cost and hassle of the repairs and service.
If your product will be complex and will require servicing, I suggest you attend trade shows where there are suppliers of products similar to yours and find out where their product service and repair centers are. Some people have been known to pose as prospective large-volume buyers in order to obtain detailed servicing information from a competitor or manufacturer of a similar product.
Naturally, companies trying to sell products will give "buyers" information they would never think of giving to their competition. If you will be exhibiting in the trade show, and you have already registered as an exhibitor, it is still very easy to go back to the lobby and register again as a buyer, without letting them know you have already registered as an exhibitor. Many times, the service centers that work on a competitor's product also repair products for several other companies. Hooking up with one of these service center chains can allow you to offer your customers a variety of service center locations without being burdened by a great deal of overhead.
If the product is complex, you should always include a label with your name, address, and ideally a toll-free telephone number to enable the end user to contact you directly if they experience any problems with your product. The label can be worded in a manner that notifies the end-user that you supply spare parts for the product. This way, the end-user will call YOU and NOT THE STORE WHERE THE PRODUCT WAS PURCHASED.
When the customer calls you directly, you have a chance to interview the end-user, thus getting valuable feedback about your product's overall performance, service requirements, and any modifications you should make.
In addition, when end users call you directly, they do not bother the store's personnel and waste their time with questions the sales people can't answer. Believe me, one of the quickest ways to kill a store's incentive for reorders is to tie up their sales people with customers who need information or have gripes about the performance of the product.
The above article was taken from James F. Riordan's classic book, HOW TO EVALUATE THE POTENTIAL FOR SUCCESS OF A NEW PRODUCT OR TECHNOLOGY. Riordan's highly-acclaimed, 36-point system is a valuable tool for inventors, product evaluators or anyone interested in the invention process. Each section is followed by a comprehensive questionnaire that can be used to evaluate your product.
The highly-recommended book can be ordered through the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501. The phone number is (310) 328-1925.
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