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You can spot new opportunities with a strong chance for success
by following these criteria: 1. The product has a big difference
people will notice. With so many thousands of products
on the market today, you won't succeed without a big enough
advantage to make people stop and take notice. In the case of
Crystal Pearls, the product had two features customers observed
immediately: First, it came in a much smaller, more convenient
bag--4 pounds vs. a 14-pound bag of traditional kitty litter.
Second, Crystal Pearls clearly absorbed all fluids, while
competitive products simply turned the liquid into little
clumps. 2. It has a strong selling point that
will entice the distribution channel to carry your
product. If you can't get the distributor to carry
your product, it won't matter if consumers like it or not
because they'll never even get the chance to see it. Because a
distribution channel may only carry 10 to 25 percent of the
products available to it, getting distributor support requires that
you have at least one strong selling point. The Schlueters had two
advantages: First, the smaller bag that's attractive to
customers is also attractive to retailers because it allows them to
produce more sales per amount of shelf space than the competition;
and second, the Schlueters were able to offer a better margin. One
of the biggest mistakes inventors make is to believe distributors
will carry their product for less margin because their product is
new. Actually, the opposite is true: Distributors want more margin
from a new product. Content Continues Below
3. Pricing should be comparable to
competing products. In the case of Crystal Pearls, a
month's supply cost about the same as a month's supply of a
competitor's product. Fact is, consumers are more likely to
take a chance on a new product if it's close in price to
existing products. Most consumers have been burned dozens of times
on the supposed benefits of a new product, so they approach new
product claims with a great deal of skepticism. A high price is all
they need to decide not to buy. The Schlueters clearly have an entrepreneurial bent. In addition
to Harvest Ventures, they run two other businesses: Sourcing
Solutions, which helps companies locate international sources for
their products, and RDS Associates, which creates engineering
solutions and custom parts for the motorcycle industry. But an
entrepreneurial spirit only works when you sell products or
services that people value. To attain business success, keep your
eyes open for opportunities, follow the guidelines for a saleable
new product, and move fast before someone else discovers your
"golden goose." | | PATENT LEARNER | | | The Federal Consumer Information Center Web
site is loaded with helpful, easy-to-understand articles
about patents for new inventors. Topics range from the Document
Disclosure Program, which inventors can use to establish a record
of their invention for just $20, to how to submit an appeal to the
Board of Patent Appeals and Interferences when your patent
application has been denied. Another great source of information is
the U.S. Department of Commerce's pamphlet Patents and How
to Get One: A Practical Handbook ($3.95). To order a copy, log
on to www.uspto.gov. |
Don Debelak is a
new-business marketing consultant and author of Think Big: Make
Millions From Your Ideas. Contact Source
Originally published in the July 2002 issue of Entrepreneur Magazine
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