April 01st, 2013

This Little Piggy Went To Market: 5 Steps

"How do I know if my product is ready for market?"

Preparing to launch your business, product or service is a monumental and exciting task!  Congratulations for being one of the tenacious, determined and crazy few who actually act and execute the concept!

I believe in a strong launch strategy, no matter what you are selling.  This post is geared towards somebody who has designed, created and produced a product and want to start selling to retailers in the wholesale arena.  What are the key steps to take?

1. Research:   No good product ever happened by accident (except for maybe sticky notes) but even then, their launch to stardom did not happen by accident.  Make sure you research not only your product idea, label and testing compliancy and potential competition, but also WHO your target customer is.  You need to engage with your target demographic and learn if your product will appeal to them and whether or not they will buy it.  Ask questions, conduct surveys, don't be shy!
2. Fixed Costs:  Make sure you are clear on EVERY single cost that goes into your product.  This includes all materials, shipping, customs brokerage, insurance to ship, textile labelling, hang tags, packaging materials.... EVERYTHING!  This allows you to determine your TRUE fixed costs and gives you your base point to start pricing your product correctly on the wholesale and retail side.
3. Pricing Strategy:  This one usually catches clients by surprise.  Seems simple right?  Price your product as high as you think you can get away with and run all the way to the bank, right?  WRONG. Every successful product launch has to have a very thorough, well thought out pricing strategy. When a shopper is looking to buy, it’s not just about the price,  clear research shows that purchases are made based on price first, but then immediately followed by trust, quality and experience.  They key areas to look at when pricing are referred to as:  Cost-plus pricing, Psychological pricing and Prestige pricing.  Knowing where you fit is crucial to your launch success.
4. Packaging:  What is YOUR product story?  How are you telling it?  Packaging materials for the end product (and ultimately the consumer) can make or break your launch.  Make sure the materials you choose reflect and balance your image, brand and story.  Eco friendly product begs for eco friendly packaging.  Be sure to research many creative options before committing to tried and true obvious ones.  Many times, a new product to market starts to overtake a seasoned leader just on branding and packaging; and it need not be expensive to be effective!
5. Distribution:  How will you sell your product to retail accounts?  Are you going to do initial sales, hire Sales Reps or a engage a Distribution company?  How do each of these items affect your gross profit margins?  What do Sales Reps want for commissions?  Do not run to market before knowing exactly what your next 3-5 year business plan looks like.  I have helped many clients who ran to market with premature pricing based on THEM doing the sales, yet when business grew and the needed to hire Sales Reps, they had not factored that expense into their wholesale pricing and they lost retail accounts who did not want to partake in the % increase that had to be implemented into the wholesale line.  Take your time and plan well!

Need help getting to market?  I have successfully created and launched over 60 products for my own retail chain as well as another 50+ for my clients.  Email me for and let's see how I can help you prepare your successful launch or book a FREE 30 minute consult right now!


www.leahchevallier.com