To avoid disappointment or setting unrealistic growth targets, take time to explore the marketplace. Understand what other similar products are available, compare and determine what your differentiator is. How are your cost projections looking? Too cheap, too expensive? You decide and change course if necessary.
What is my pricing strategy?
Understand your investment cost, your opportunity cost, your advertising, your sunk costs (e.g. resources – human and machine). Understand the R&D position, do you qualify for relief? All of these factors need to be considered when pricing your goods and services. Is it an unique proposition, that solves specific problems for a short period – price appropriately. Does this have a long shelf-life or has the ability to morph and adapt – price appropriately. Do discounts and special offers make sense or do they devalue the proposition?
What ‘shelf-life’ does this product / service have?
Have you considered the ‘life expectancy’ of your product or service? Do you have a small window to deliver? Will it be relevant for years to come with or without tweaks and updates? In short, is it worth the investment if the window of return is small?
Does this Product / Service provide recurring revenue?
Following on from shelf-life, does the item have recurring revenue potential? Does it act as a vehicle to provide other good or services?
How am I going to advertise my product / service?
How will you get the message out? What key messages and differentiators can you focus campaigns on? What media is most appropriate? Do you need to seek professional advice and opinion? (Don’t forget to factor this into your pricing strategy)
Why would / should people buy my product / service?
Don’t try and solve all problems at once. Settle on a few key benefits of the item and define your pitch and messaging to become clear, confident and certain.
Will this product / service impact or support my other revenue lines?
Focus. You may have stumbled on the next big thing, but are you sure? Whatever decisions you take you need to protect revenue lines
to allow investment.
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