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Is Your Product 'Da Bomb' or Just a Bomb?

Don't waste time developing a product no one wants. These five steps to testing the market will help you launch a winner.
September 13, 2005
URL: http://www.entrepreneur.com/article/79844

Enormous amounts of money are spent every year in market testing. Many thousands of prospective customers are surveyed extensively to determine whether or not to bring a product to market. But in spite of the most extensive interviews and surveys, fully 80 percent of new products and services fail within the first year.

Your time and money are extremely valuable to you--you can't afford to waste them by investing them in producing a product or service that fails in the marketplace. The more you test your product before you produce and sell it, the more likely you are to earn the sales and profits that you desire. Just remember, every dollar you spend in market testing will save you many dollars of losses later on in the marketing process.

Here's how to begin:

The only real test of a product is a market test, where you take your new product or service to a customer who can buy it to see if he likes it. As soon as you know your cost and price, make a sales call on a potential buyer. (The ability to sell the product is more important than any other skill--this will give you a chance to sharpen yours.) Listen carefully to the comments and objections of the buyer--their feedback is priceless.

Then once you've determined there's a large enough market for your product--at the price you'll have to charge to make a profit--immediately begin thinking of ways to improve both the product and the marketing. Continually tweaking your plans--instead of sticking only with your original ideas--will help ensure your product's success.


Brian Tracy is the "Success Secrets" coach at Entrepreneur.com and one of America's leading authorities on entrepreneurial development. He's produced more than 300 audio and video learning programs that cover the entire spectrum of human and corporate performance.