Something I see so often in the product business world is that businesses often get stuck. After launching a product, most businesses feel lost and stuck in the “now what?” stage.
You have gotten through the administration and build-up of picking a business name, finding suppliers, costing your product and building you website. Maybe you even had a launch strategy ready to build up that big anticipation and release!!
But then you did that and bam.
Crickets again. No sales or hardly any…..and it is tough.
You struggle to get in front of new customers, there is hardly any traffic to your website and you are just not sure what to do next.
You may have even asked yourself these questions…..
- Should I focus on Instagram and trying to go viral?
- Do you have enough margin for wholesale?
- Should I head to some markets and get in front of buyers there?
- Is my product retail ready? Should I be trying to wholesale?
- Should I be using facebook, instagram or google ads?
These are all the question I see so many businesses ask and so many struggle with in this next phase of their business journey. The next step.
The Roadmap To A Profitable Product Business
Having a product-based business is not easy.
You need to constantly invest in more stock or product, constantly find new customers as well as constantly planning ahead.
What I love helping my clients with is this exact issue: providing a roadmap of how to succeed as a product business.
A way to get your brand out there and generating the 5 figure and 6 figure months. Million-dollar years and beyond.
One thing I can tell you from working in the retail and product business for over 20 years is that it is possible.
I have seen those with $20- $500 products have multimillion dollar businesses. These include fashion brands, accessories brands, artists, ceramic companies, jewellery labels, sunglass companies and so many more that have succeeded in building a profitable product brand!
BUT, there are a few essential things you need to succeed and that is what I want to talk about here today.
5 Product Business Success Essentials
So, here we go! A starting point for success in your brand new product business. These are the 5 essentials for product business success I have concluded from my 20 years of experience in the retail industry.
1. Get your Pricing RIGHT!!
First and foremost, you need to get your pricing right.
In order to do that, you need to have a good profit margin on your product.
This means that you need to retail directly to the consumer(DTC), as well as to wholesale it (B2B). Doing so means you will have enough margin to be competitive in the market, and also have enough left to pay for your expenses and make a profit!
2. You need to have a unique selling proposition (USP)
You don’t necessarily need a unique product (although of course this always helps!).
That being said, you do need to have something that is different from what is already out there.
If the market is there, and you have a unique viewpoint, then it can work.
Knowing what makes you unique is crucial. Starting a denim brand without a unique style or brand purpose is going to be hard to break through the noise.
Do your research and make sure you are offering something unique. Or solving a problem for consumers.
3. Have multiple sales channels
Yes! You can succeed being a DTC brand, but you will need to invest big in acquiring customers(think customer acquisition cost -CAC) and getting eyes on your brand. It is even better to have multiple ways to get your products in front of your buyers.
In other words, having multiple revenue streams is ideal.
Selling wholesale, maybe have a distributor, dropshipping from other market places such as Asos, Iconic, and Amazon are all great options. You can also consider being at boutique markets, having a pop up or retail space to grow brand visibility.
After trying various sales channels, you should then pick the ones that work best for your product and serve your customers well.
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4. Investing in marketing is a must!!!
Whether that is via your product imagery, paid advertising, using influencers, print or radio advertising, email marketing, social media/content creators, or marketing strategists, it is essential to invest in marketing.
Marketing should be viewed as an investment, not just an expense. Ideally, the money spent here is always going to give you a ROI (return on investment).
The age old saying “You have to spend money to make money” comes into play here.
5. Customer service and understanding the customer experience is key!!
You need to listen to your customers, provide them with a great experience, surprise and delight them, nurture them, understand their pain points, innovate for them and love them!!!
Remember, customer is king. Without happy customers, you are one step away from a warehouse full of products that are just collecting dust.
More Resources On Building A Profitable Product Business
I dive deeper into the 5 essentials for product business success and so much more in my FREE guide.
Learn more about the 8 steps you must follow to have a profitable product business. Grab the free checklist here to see whether you are on the right track to succeeding as a product-based brand. If you need a little help with pricing your product, then this free guide is for you!
Find all the support you need to build your profitable product business in my signature program: