Does Your New Product Stand Alone?  Or Are There Other 
Items That Can Create a Viable Product Line?

As we saw in the last article, a one-product line, even though the product may have a great potential, is not nearly as exciting to the evaluator, nor is it worth as much, as one which can have a line of accessories developed for it. The ideal product will be capable of expansion in four areas:

1. Products--New and compatible products can be developed which complement, but do not compete with, the original product. A good example would be Maglite flashlights, which first introduced their "Mini-Maglite" flashlight and then went on to build a whole line of personal and professional flashlights, none of which competed with the original product.

Many companies have underestimated the harmful consequences of simply mentioning a new upcoming line extension, which competed with the original product, only to find the sales of the original product collapsed overnight. A good example of that is Osborne computer, which announced they were gong to be coming out with a "new generation" of computer while they were still manufacturing only the first version. The first version quickly became know by consumers as the "old-style." Sales of the first version became nonexistent, since consumers wanted to wait for the "new style," and since the company was not ready to produce the "new style," it was forced into bankruptcy.

2. Uses--New and varied uses can be developed which cause customers to want or need more than one. A good example would be Arm & Hammer baking soda, which offers the same product as baking soda, a refrigerator deodorant, and a dental hygiene product.

3. Style--The product can be made in different styles and price ranges to appeal to many different market segments. For example, the Dymo labelmaker has been produced in many different styles and price ranges, from the inexpensive plastic version to the expensive chrome plated office equipment version.

4. Users--New end-users may be targeted after the first group is satisfied. For example, cell phones were originally targeted at business executives. Then slowly, the targets expanded to include mothers, homemakers and the general public.

The potential for adding new products, new uses and new users has a direct bearing on the dollar value of a new product. A product which has limited potential for product line extensions or expansion is probably not a worthwhile candidate for the development of a new stand-alone business venture, but it may well prove to be a profitable line extension for an existing operation.

Individuals who find themselves in the position of having a product which appears to have good potential for success, but lacks any possibilities for the development of a product line, may be limited to selling the product through mail order or direct sales. In the long run, they may be better off selling or licensing their product to a company which has the ability to fit the product into their existing lines, especially if the product will require a nationwide network of reps to insure proper distribution.

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.

      

         

            Previous
         
         

            
Index
         
         

            
         
         

            
Idea Help
         
         

            Next