THE QUESTIONS YOU NEED TO ASK
As You Continue Developing Your Product Idea, Stop and Answer These Important Questions.
By Ken Tarlow
PART ONE
When you move closer to making a prototype of your idea, it's time to ask yourself some tough questions about your product. Let's look at a few.
1. WHO WILL YOUR PRODUCT BE SOLD TO AND HOW MANY OF THEM ARE THERE?
Check industry journals for sales in your product category. In addition, visit the local library and ask the librarian where to find statistics like U.S. Census information, etc.
2. HOW MANY PRODUCTS CAN YOU EXPECT TO SELL TO YOUR TARGET AUDIENCE?
If your target sales group is all women who have kitchens and work regularly, the population might be 50 million. A realistic percentage of women who will buy your product is between one half of one percent and four percent. This translates into between 250,000 on the low side and two million on the high side. Four percent means that one woman out of 25 owns your product. That's a lot.
3. WHAT IS YOUR TARGET AUDIENCE BUYING IN PLACE OF YOUR PRODUCT?
People must be doing something to fill your product's need at this time. What products are they using? What do they cost? What are the inconveniences? Check local department stores, mail order catalogs, specialty stores.
4. WHAT'S THE LIFE SPAN OF YOUR PRODUCT?
Fad items can only be expected to last one season.
General consumer products usually last three years before needing redesign. Durable goods, tools, and specialty items that are targeted to a specific loyal audience may last five to seven years before needing major redesign.
5. IS YOUR PRODUCT A SEASONAL ITEM?
Seasonal items (beach items, skiing items, etc.) can only be sold during a single season. This is not as desirable as a product that is sold year round.
6. IS YOUR PRODUCT IDEA PROTECTABLE?
Your product idea needs to be unique enough to qualify for a patent. Visit a patent depository library to research patents in your product category.
7. HOW MUCH WILL YOUR PRODUCT COST TO MAKE?
Any product you see for sale in a department store costs between 20 to 30 percent of the retail price to manufacture.
NEXT ISSUE: More Important questions to ask
The above article was excerpted from Ken Tarlow's MIND TO MONEY, a cassette tape/workbook package that can help you develop a new product from the idea stage to the marketplace. MIND TO MONEY may be ordered from the Dream Merchant at $59.95 plus $4.95 CA sales tax and$5 shipping and handling ($69.90 total). Send orders to the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501.
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