Business Education, Uncategorized

5 New Product Rules Every Entrepreneur Should Know

Consumers are truly creatures of habit. In fact, the average family purchases the same 150 products again and again, which accounts for a whopping 85 percent of all needs, according to a study conducted by Harvard Business School. Of course, that means when a new product appears on the market, its got to somehow work its way into those recurring purchases. It’s no secret that consumers are quite brand-loyal, so, this presents an even larger challenge. When you stop to consider your own purchasing habits, you begin to realize just how loyal you are to certain brands. Carving out market share is difficult enough, but, even more so when a product comes from an unknown or relatively new source.

5 New Product Rules every Entrepreneur should Know

There are some 250,000 new product launches globally on average, per year. Obviously, very few make it past the first couple of years, as clearly evidenced by the nearby quote. What’s more, companies often fail to recoup development costs. In the grocery industry alone, the failure rate is even higher, ranging from 70 percent to 80 percent, according to research done at the University of Toronto.

…the fact remains that the success rates of new product introductions and innovations have improved little over the last 20 years. Booz & Company reports 66 percent of new products fail within two years, and Doblin Group says a startling 96 percent of all innovations fail to return their cost of capital. —Fast Company

For small-sized American food businesses, the success rate is even more sparse, coming-in at just 11 percent, which regulates an eye-popping 89 percent to failure. The top culprits of failure are poor product quality and design, but overestimating demand, bad pricing and timing, as well as incorrect positioning also make the list. The statistics go on and on when it comes to new product failure, so, it’s important to know what makes products get past their introduction to the public and sell. Here are five new product rules every entrepreneur should know and follow:

It must have at least one solid advantage. There are several advantages a product can have and among the most persuasive are value for the money, prestige, effectiveness, convenience, and high-quality. If you look over this list again, you’ll find at the heart of all these is providing for want and need. For instance, the iPhone revolutionized the mobile phone industry — it fulfills a need, is a high-quality product, and provides many conveniences.
The product must fit into consumers’ routines. If a product won’t easily fit into consumers’ routines, it won’t sell on the market. A product must be able to accommodate buyers’ routines because, as mentioned above, people are creatures of habit. Some products are able to break this rule, but these are few and far between.
It’s got to work right out-of-the-box. American consumers love convenience, and, are very annoyed when a new product proves to be anything but convenient. Most people cringe at the phrase “some assembly required,” because of past experiences. Make a product that works right out-of-the-box and it has a much better chance of success.
The benefits should be obvious to consumers. When consumers can readily identify the benefits of a product, they are more likely to buy it. Stop to consider the last time you were shopping for a specific type of item and compared brands. It’s highly probable you purchased the one you could easily spot its benefits.
It can be given away for nothing (or part of a promotion). The Clorox company began marketing its first cleaning products to businesses and this approach failed. However, one owner’s wife saw that it had marvelous residential use potential. She gave small bottles of it away and soon after, sales skyrocketed. When consumers are given the opportunity to “test drive” products for free or at a low cost, they are more apt to purchasing it again and again.

Though these elements will all increase the chance of success for a new product, it’s important to understand the market and to have an executable plan to be successful.

We have several Clients that have new and innovative products that are succeeding because they have followed these five rules. Let us know your new product ideas and make certain yours meets these five new product rules.

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Have You Tried the Discarded Napkin Test?

October 29, 2017 No Comments

Have you tried the discarded napkin test? Perhaps you’ve never heard of it because it isn’t an actual thing. But, this simple sociological experiment does reveal some fascinating insight into how we perceive others and gauge various environments. Don’t bother Googling it, you won’t find any on-point results. However, that doesn’t mean it’s not useful. Try the Discarded Napkin Test for Yourself The discarded napkin test is a simple one. And, it clearly demonstrates the importance of appearance. Here it is: go into a casual restaurant prior to the lunch hour rush. Crumple a clean napkin and place it on a clean but empty table. Sit nearby and watch how many people past the “tainted” table up for another. Eventually, if there’s no more tables available, someone will muster the courage to clean it off. Or, give into the frustration of the limited seating options and swipe it to the floor. Many workplaces have dress codes, particularly workplaces in industries in which image is highly valued and workplaces in which employees have regular face-to-face contact with customers. Whether you are considering setting a dress code for an existing workplace or trying to decide whether your new retail store will require employees to adhere to a dress code, consider the broad benefits and potential drawbacks — like backlash from casual-dressing employees — of such a move. —Houston Chronicle The point is, people will choose to sit elsewhere even when the only flaw with a table is a discarded napkin. That’s it. Its unpleasing appearance is enough to turn off person after person. Although a bit strange, it’s true. And, it begs the question — are employee dress codes good or bad? Employee Dress Codes Pros and Cons Okay, so there are a number of dumb office rules that drive employees crazy. But, some make sense to enforce. When it comes to employee dress codes, it’s not always cut and dry. This means, while an employee dress code can actually be a good policy, it can also be a bad idea. Here are some employee dress code pros and cons to consider: Pro — professional appearance. The single biggest benefit of an employee dress code is it provides a professional appearance. It’s especially useful in retail settings and offices. In the former, uniforms distinguish employees while the latter, business casual provides a professional yet laid back experience. Con — stifles personal style. Although a dress code does provide a more professional experience, it also can stifle personal style. That can mean rebellion, particularly in an office setting. Team members might feel an imposition and possibly a bit untrusted. Pro — provides “uniform” experience. Of course, you’d like your business to send a uniform message, which uniforms undeniably provide. However, in an office setting, this is a little more problematic. But, broad rules with clear prohibitions usually works well. Con — needs consistent policing. Now, the biggest downside of any dress code is the need to police it constantly and consistently. Otherwise, it’s just a suggestion and not enforced policy. At least, that’s the way employees will feel. What other pros and cons of employee dress codes have you experienced? Do you favor a strict dress code or a loose one? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

When Should Your Business Start Charging for a Free Service or Product?

January 16, 2020 No Comments

There comes a time when a business must start to charge customers for something it’s provided for free in the past. As consumers, we are all familiar with this phenomenon. Perhaps a local restaurant favorite, that previously furnished patrons with bread-sticks or chips, free of charge. Then, suddenly on one particular visit, that item was no longer provided for free. Why Businesses Start Charging for a Previously Free Product or Service Of course, there are a myriad of reasons for a business to transition from offering something at no cost to charging its customers for it. It could be due to a variety of situations, such as a lack in supply, an overall change in industry practices, perhaps a transition from one owner to another, or a simple revenue loss calculation. One of the secrets to business success is pricing your products properly. Price your products correctly and that can enhance how much you sell, creating the foundation for a business that will prosper. Get your pricing strategy wrong and you may create problems that your business may never be able to overcome. —Inc.com Whatever the underlying reason for the change, it is usually out of necessity, rather than just a capricious decision on the part of the business. Perhaps your company is experiencing this and you’re wondering if it is feasible to charge for something you have previously provided at no cost to your customers. It’s a tough decision because you’re obviously worried that it might hurt your business, either in the short- or long-term. How to Know When it’s Time to Begin Charging for a Service or Product Previously Provided at No Charge Of course, there’s always a risk entailed in going from no cost to charging for something, be it a service or a product. So, let’s take a look at a few reasons when it is appropriate to start charging for a service or product you previously offered at no cost: There’s a change in your cost. Let’s begin with one of the most obvious signs, a change in your expenses. You might have experienced an increase in how you acquire a product or need to keep up with the industry and start charging for a particular service you offered for free prior. Other businesses already charged for the same thing. Here’s another fairly straightforward reason — companies in your line of business already charge for that certain product or service. Perhaps you did not in the past because it was a way to drive business. But now that you’re established, it’s time for customers to pay for it. The industry itself is changing. Sometimes, market forces simply dictate a change in the way some companies do business. This might be one of those circumstances, when others in the same industry are starting to charge for something that they previously provided for free. It’s simply time to make the transition. There are times when it’s necessary to take a loss-leader and transform it over to a revenue generator. It isn’t really all that uncommon for businesses to take a small loss on a product or service for some length of time, only to begin to monetize it at some point. What other advice would you give about transitioning from taking a product or service from no cost to charging? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Starting a New Retail Business? Don’t Forget to Dress (Your Employees) for Success!

August 10, 2023 No Comments

For a startup retail business, creating a strong brand identity is crucial to stand out in a competitive market. In other words, details matter and they matter a lot when it comes to brand identity. So, nothing should be overlooked. For instance, employee uniforms play a significant role in shaping that identity, as they are a direct representation of your brand and values. The right employee uniforms can reinforce your brand message, foster a sense of unity among your team, and leave a lasting impression on customers. How New Start-Up Retailers Should Choose Employee Uniforms When you’re starting a new retail business, one of the first decisions you’ll need to make is what to wear. Do you want your employees to wear uniforms? If so, what kind of uniforms will best represent your brand? With this in mind, here are a few things to consider when selecting employee uniforms for a startup retail business: Your brand identity. What kind of image do you want to project to your customers? Do you want your employees to look professional, stylish, or casual? The style of your uniforms should reflect your brand identity. The type of work your employees do. If your employees are going to be on their feet all day, you’ll need to choose comfortable uniforms that can withstand wear and tear. If your employees are working in a hazardous environment, you’ll need to choose uniforms that provide protection. Your budget. Uniforms can be expensive, so you’ll need to set a budget before you start shopping. There are a variety of ways to save money on uniforms, such as buying them in bulk or looking for discounts. Once you’ve considered these factors, you can start shopping for uniforms. But, before you begin your search, you should do a few things first so you don’t wind up wasting valuable time. Here are a few tips for finding the right uniforms for your startup retail business: Talk to your employees. Get their input on what they would like to wear. They’ll be the ones wearing the uniforms, so it’s important that they feel comfortable and confident in them. Shop around. Compare prices from different vendors before you make a decision. You may be able to find a better deal if you shop online and/or look for discounts. Choose a reputable vendor. Make sure the vendor you choose has a good reputation for quality and customer service. After all, as your business grows, you’ll need a reliable source for future uniforms. With a little planning, you can find the perfect employee uniforms for your startup retail business. Your uniforms will help to create a professional and polished image for your brand, and they’ll make your employees feel confident and comfortable. Now, to ensure you’re making the right decision, here are some additional tips for selecting employee uniforms for a startup retail business: Choose colors that complement your store’s branding. If your store has a specific color scheme, choose uniforms that match or coordinate with those colors. This will help to create a cohesive look for your employees and your store. Consider the climate where your store is located. If you’re located in a warm climate, you’ll need to choose uniforms that are lightweight and breathable. If you’re located in a cold climate, you’ll need to choose uniforms that are warm and comfortable. Make sure the uniforms are comfortable and durable. This is definitely worth repeating. Your employees will be spending a lot of time in their uniforms, so it’s important that they’re comfortable and durable. Choose uniforms that are made from high-quality materials that will withstand wear and tear. Consider the needs of your employees. Some employees may have special needs, such as uniforms that are loose-fitting or that accommodate disabilities. Make sure to consider the needs of your employees when choosing uniforms. By following these tips and using your own judgment and getting input from others, you can select employee uniforms that will help to create a professional and polished image for your startup retail business. Your uniforms will make your employees feel confident and comfortable, and they’ll help to promote your brand. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.