Product Development

 

 

 

 

Your Experience
Your Solution

Your product failed miserably upon introducing it to the retail market.

One of the advantages to having a relationship with the sales channels is that you can discuss future products. This allows you to develop products that are ideal for retail; and therefore sell better.

———————————————————————————

Retail - your connection to the real World

The perfect relationship between retail and vendor is when the vendor begins to involve the retailer in the product development. The retailers have the advantage of knowing what other vendors are developing. Therefore, using retail as part of your product development could increase your odds of creating products that are optimal for retail.

You may feel there are certain areas of discussion that you cannot trust people outside of your company, but you reach a point where you benefit from knowing the retailers point of view. Moreover, retail knows they will benefit from products that are optimal.

Texas instruments

Once a Product Developer responsible for Texas Instruments showed me a prototype of a palm-like product. When asked my opinion, I told him that I didn’t think it would ever be a commercial success. They did not like my explanation. Nevertheless, by asking buyers like myself, you have the potential to increase your sales or save a lot of money. Sometimes a good product or idea is just developed too late. The buyers have good ideas about future products and if the product will make it in today’s market. What is more, I never saw the product from Texas Instruments introduced.

HP

Big companies, such as HP, frequently ask retailers which components should be used in their computers, and what the right retail price should be.



Jens Welling

 

The author of this article Jens Welling has worked with retail purchase, retail sales and retail marketing over the last 15+ years. Jens Welling has written a number of articles as a good source for any new and established company who want success with retail sales. Below are short descriptions and links to other articles.

Why You Have To Do Your Homework
Selling through retail is one of the toughest sales channels there is. Reactions come instantly. There is no mercy for mistakes in retail sales. One word covers what you need: Preparation. ...Read more

Choosing Sales And Distribution Channels
Make the right choices from the very beginning. Group the sales channels and start with the companies that fit your size and that do not compete head-on with each other. Use the distribution channels actively to get contacts inside the sales channels....Read more

Category Management
Learn to understand and use Category Management to your advantage and earn money....Read more

Unique Selling Points (USP)
Take the time to find out exactly WHOM your consumers are. You need to find your Unique Selling Points (USP). Once you get to know them, you'll know what to say to them!...Read more

Price Strategy
Right from the beginning, you have to be aware that On-line stores will “dump” your prices if you are not in control. Base your price strategy on your long-term goals: Where you want to sell the most products....Read more

What The Buyer Wants To Know
The buyer does NOT want a lot of information. He/she is living in a very high-paced environment and only wants your information in brief bullet points. Follow some simple rules and you will give the buyer what he needs....Read more

Exit Strategy
You must prepare your business for the anticipation risk of large quantities of products to be returned. You need an exit strategy. The returned products can be used to create new sales channels and partnerships, turning this somewhat hopeless situation into a profitable one....Read more

Price Setting
Consumers have psychologically priced a product with a certain amount that they are willing to pay (price point). If you exceed their psychological value, you risk failing in retail....Read more

Negotiation Tactics
It is obvious to focus on price as a sales factor. However, help yourself by prepare for negotiation tactics by highlighting the other Unique Selling Points (USP) - and at a minimum explain the price per performance compared to competitors....Read more

Rejection From Buyer
The buyer can reject you for several reasons. You must talk to the buyer to find out exactly WHY you got rejected.....Read more

Marketing Strategy
Selling to a retail chain often means you have to advertise in their catalogues, newspaper ads, etc.
This alone does not create a brand; you must also supplement the retail advertising with your own marketing strategy....Read more

Education Management
Your energy must focus on the stores (retail training). Face-to-face education is the most effective but also the most time-consuming and expensive....Read more

Warranties
What retail warranties are you ready for? Depending on your sales channels, you must consider the quantity of products that may be returned...Read more

Building A Brand
You must raise the consumers' awareness and perceived value of your product through brand development.
Once you do this, consumers can and will identify your product as a brand....Read more

Logistics
A high tech vendor will eventually have late delivery of products regardless of penalties. So what should a vendor do when the logistics fail?...Read more

Keeping Your Store Sales Alive
Keeping your retail store sales alive is a never-ending process....Read more

Product Development
One of the advantages to having a relationship with the sales channels is that you can discuss future product development....Read more