Creating a Product or Service

June 16, 2018 117 views

Image of products on a store shelf

How to Eliminate Chaos in Your Business
Part 20

Insights For Creating a Product or Service

There are many aspects to be aware of in creating a product or service. Taking time to plan and research will save you time and money.

Your business may not depend on you creating products or services, but you can always use your creativity to modify your current product or service lines.

Understanding the following will aid in improving and creating products or services.

Why Should I Create My Own Product or Service?

You may sell many products or services in your business, but having your own product or service can be a great advantage in the marketplace. The main benefit is control.

Your own product or service does not have to be sold at a profit. You can give it away or bundle it with something else to bring in customers.

Your product can be information packaged nicely as an audio or video cassette or a booklet. It can be anything you can create for your business. There are millions of ideas; you just have to think of what your customers would want.

People Buy What They Want, Not What They Need:

It is human behavior to get what we want, as compared to what we need. Look at everything around you.

Do you need all this to stay alive? To survive? No. The things around you are probably there because at one time or another you wanted them.

You may need a car to get to work. You can get by with a basic car, with no options and no luxury items, or the same car fully loaded with a substantially higher price tag. People find ways to buy the fully loaded car with all the options and luxuries. They don’t need leather seats, aluminum rims, CD players, power windows, etc. They want these options. When you’re thinking of creating a product for the market, find out what people want, not what they need. How much easier would your sales be if the prospect already wanted what you offer?

Create a Product for the Market:

Usually, people develop a product first, then try to find a market to buy their newly created products. This may turn out to be a waste of time and money. The proper way to go about it is to develop a product for an existing market. Making a product and then looking for people who want it is a gamble; figure out what people want and make that.

Cures vs. Prevention:

When you are selling problem-related items or services, keep in mind: people buy cures, not prevention. What would make you go to the dentist immediately? The prevention of a cavity or a massive toothache? It is the same in marketing. You’ll have an easier time selling people solutions to problems that they already have than you will convincing them that they need your product to solve a problem they don’t have yet.

Pricing and Value:

When you price your product, don’t price it too low. You may think that a cheap price will translate to more sales, but this is not absolutely true. The effort to make a sale on a $25 item is the same as the effort to make a sale on a $45 item. You have to go through the same process to make the sale.

Instead of concentrating on price reduction, increase your product’s perceived value. In other words, add value to your product.

If you are selling, for example, a software program that submits a website to the search engines, you could add a report or manual to help your customer achieve the best results. You could also add a video tutorial. The more bonuses you add, the more perceived value your product possesses.

It suddenly becomes a package. Proper packaging, or grouping products of a similar nature, adds tremendous perceived value, therefore increasing sales with less effort. Get your product and packaging right, and the sales process will become easier.

The Quickest and Easiest Way to Get Your Own Product:

If you are looking for a quick and easy way to have your own product, you should look into licensing someone else’s product, which they have already gone through the work of creating, marketing, and testing. The benefits of licensing are that the product is already selling, the marketing tests are finished, and the sales letters are complete. All the hard work is done. All you have to do is choose the right license.

I won’t go into this too much, but you can do more research by listening to the audio program, “Wealth Building Through Licensing,” found at A Touch of Business.com. Get the expert advice of Paul Hartunian, as he explains the different types of licenses and all the benefits.

Next In This Guide: Simple Small Business Promotions

How to Eliminate Chaos in Your Business ~ Table of Contents