Success With Your New Product Will Depend on Several Factors, 
Each One an Important Part of the Puzzle.

When it comes to product development, knowledge is power. And it helps to understand the elements that will make you successful. These elements work together as pieces of the "Product Success Puzzle." In this puzzle, each piece must be strong and fit precisely with the other pieces. No part can be left out. And if a piece is weak or left out, your chances of success go down dramatically.

Let's look at each element in this puzzle and what you're shooting for in your journey to success:

1. Good Price--The cost of actually manufacturing a product should be about 20 percent of the final retail price. You must be sure that the consumer is willing to pay the final retail price and feels that he has received good value for the money.

2. Easy to Market--Some products are easier than others to put into the consumer's hands. If you've developed a new part that must be installed by an auto manufacturer, you have to convince GM to license your part. This can be tough. If you developed an auto aftermarket product, there are dozens of manufacturers who might be interested. They in turn sell to thousands of auto accessory stores.

3. Manufacturable--Can your product be made? Is there a manufacturing process that's suited to your product? We're not making one or two of these. We're making hundreds of thousands!

4. Patentable--As an independent product developer, your product must be patentable if you hope to negotiate a decent royalty from a manufacturer or if you want to raise money to manufacture the product yourself.

5. Tooling Cost Not Excessive--Manufacturers are taking a big risk when spending many thousands of dollars on tooling a product whose success is unknown. If the tooling cost is too high, the manufacturer may think it's not worth the risk.

6. Easy to Use--Your product should be understood by the consumer within seconds of seeing it. If your product requires a big explanation, the manufacturer needs a big advertising budget. This can be a problem.

7. R & D Cost Not Excessive--If the research and development cost is very high, you'll probably have trouble raising the money. This phase of development is the most risky and investors shy away form R & D ventures unless you have a stellar track record in your field.

8. Fills a Need--This is the most important piece. People want the product to have a definable function, even if it's a novelty item. A large percent of the population needs to look at your product ad say, "I NEED THIS."

Reread the above Success Puzzle with your own product in mind. If your product stacks up positively in each area, you'll have a greater chance at success.

The above article was excerpted from 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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