Product and Service Development
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Video transcript:
Have you ever watched Dragons Den on the television?
Now what you have to remember is that the people who are on the panel are successful business owners and entrepreneurs in their own right so have seen it, done it, and have a good idea what makes a good product or service.
That is why they are often amazed by some of the people who pitch on the show. How often do we see a pitch about a product or service for which there will never be a demand!
And sadly, more often than not, these same people have invested everything they own to 'create' this product that will never find a buyer.
It's as simple as this ... if you want to make money to have to sell your goods or services to other people, your target audience.
But they can only be your target audience if your goods or services match their needs or wants.
Every selling proposition moves a potential customer either closer to desire or further away from pain so your products or solutions have to be tailored to their needs or wants.
You should be looking at your products or services and seeing have they fit in with what your clients want and not with what you want, or your family wants, or even what your employees want.
Let's have a look at some examples to illustrate the point I'm trying to make ....
1. You're a self-employed plumber who insists that your customers pay cash and there's no paper work ... your customers actually want a receipt and written guarantee with the option to pay with a debit card
2. You're a self-employed plumber who doesn't take cash, provides a receipt for all of your work, and gives a guarantee ... your customers want the cheapest possible price and want to pay cash
3. You design a rain proof coat from a special material meaning that it is dry again within minutes no matter how wet it is. Comes with a hefty price tag ... your customers are happy with an inexpensive fold away coat
These aren't particularly great examples but what I'm trying to do is illustrate the fact that you can't sell what your audience doesn't want or need.
So in practical terms what do your products or services do to meet the needs or wants of your target market?
Are there things you could add to your service that would increase the positive experience of your customer?
Actions
Take a look at the products or services you offer to your customers and check ...
Are you providing the ideal service or product for your customers ... for example, if you sold wood flooring do you provide a delivery service?
1. Could you improve your customers experience ... for example if you sold wood flooring could you provide videos on your website or from the manufacturer on how to fit it correctly? Could you happily recommend tradesmen who would enhance or compliment your local brand to ensure it is fitted properly thereby giving them the floor they dreamed about?
2. If you do provide 'free' delivery do you offer a discount if they take it away themselves for customers who want the keenest prices?
3. Could you create sample packs of your flooring with a deposit (to encourage them to return to your business) so that they can go home with the samples and choose the exact colour or finish they wanted?
4. Take that one step further ... could you send someone to their house (by appointment) to show them a selected range and receive advice on which way the floor could be laid to reduce costs or achieve a better finish?
Final Note
Don't forget, as a local business owner, the greatest source of information for all of these types of questions are your current customers. As them what they thought of your service, your products etc. What would they have been willing t pay more for and what would did they not like paying for?
Answering these questions will enable you to provide a range of products or services. Again, as an example using the flooring we were discussing earlier ...
Product A - discounted price on your flooring, take it away today
Product A - regular price with free delivery
Product A - premium price with free delivery and free fitting by guaranteed tradesman
It doesn't matter what you sell or do, every product or service can have various price points and packages.
Take the time to look at your business if you are providing the goods or services your customers are looking for or are they going elsewhere, to your competitors because you don't meet their needs?
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