When you release a new product, studying your target customers and what makes them tick is as important as the quality of the device itself. What’s the point of creating the Holy Grail of Technologies if nobody will buy it? In order to maximize profits, ask yourself the following questions:
- Is there a market for your product?
You can come up with a really fun gadget, but if it’s similar to countless other thingamabobs out there, it doesn’t make sense to invest your time, money, and effort to launch it. Determine whether the venture is worth it by conducting primary and secondary market research. As with everything else in life, the person who’s best prepared wins.
- Why do they want it?
Will your product make consumers’ lives easier? Will they be able to use their time more efficiently or be better entertained? Is it filling a void that your competitors are ignoring? Make it a priority to understand their point of view and their perceptions. Sometimes, what seems like a great idea might be associated with negative side effects to a significant portion of your market, like what happened with 3D TV.
- How much are they willing to pay for it?
Pricing research is essential for realistic profit expectations. The higher the value your product brings to the consumer’s life, the higher you can set the cost (this takes us back to No. 2 on this list). Remember to also keep in mind the competitions’ pricing.
- Who are your competitors and how can you beat them at this game?
World domination. That’s your goal. And the plan is simple: Find your competitor’s weakness and strategize how your product can solve that problem.