How does a gadget become a million dollar selling item? When does it stay stuck in being a couple bucks gadget?

Brad Peabody

Brad Peabody

Répondu il y a 123w

Your question is basically “what makes good marketing good?”. The answer is, as you might have guessed, it depends.

One way to look at it is that there are a bunch of people out there who are a potential public for the product in question. And there is a path of things they have to learn about, do, etc. to actually buy it. Without even careful attention to detail, one can see some obvious things: How many people actual want this kind of product? Do they understand (or can they easily be made to understand) what it is or how it works? Do they trust that what is being said about the product is true? Can they easily get it? Should they get it from you? (Or just go to your competitor.) Is it worth parting with that dollar amount for? The actual answers to these questions, which you look at when you are planning a product and it’s marketing, can be difficult to discern. People spend lots of money to try to figure those things out. Sometimes the answers are somewhat obvious and intuitive, sometimes they are totally not and you discover through research or observation that you have no idea what is going on inside the heads of the people you are trying to sell to.

Marketing is not just about advertising and having a good name (although those are certainly factors). How many people need a pineapple peeler? How many people realize it? What will they be doing instead without your product?

Any one of the factors above, and probably plenty more I haven’t thought of or listed, can be the buzz kill that makes your product not sell. And with that, the question is really how much are you willing to look, research, observe, etc., and discover what those factors are and their relative importances, and how willing and able are you to rectify what you find.

Vaibhav Sharda

Vaibhav Sharda, Founder at Verified Tasks

Répondu il y a 123w · L'auteur dispose de réponses 80 et de vues de réponses 26.2k

A gadget is used to automate manual tasks.
As long as it is helping the customers save their time,it will sell by itself.

You need the first pitch. Telling everyone that you have this gadget for sale and it does these things.
The market needs to know that something is out there.
You need to advertise only once and then let the market decide its value.
Spend good amount in marketing to cover as many people as possible.

If its good, customers will surely refer their friends and family and eventually the sale rises via word of mouth.

Vaibhav Kumar Sharma

Vaibhav Kumar Sharma, Gadget geek

Répondu il y a 123w

“What is shown , is sold” - This is not just a quote but an age old selling principle.

The products whose necessity is made rather important to breathing are the ones people die to take whatever be the cost . Now the question arises is it that necessary to buy a costly gadget ? And the answer might flicker from person to person but for the companies buying these should be your goal in life .

The gadgets are shown as a status symbol and their presence is shown as a dignity in the society . Taking the case of Apple company in India ,their products are taken as a luxury and people ought to buy these no matter better products are available in the same price tag or even below. The marketing methods of the product are equally important as other characteristics of the product . Some companies might portray the product to be used by rich class people while other companies might portray the product to be scratch free, the marketing strategies make the product to fly high or to get chopped down by the residing competition.

The product is bought at High prices when we feel it's place can never be filled by other devices , this is a case companies take care of . They design a product which is different from others and even performs the deeds of other products so that people refrain buying two products and consider themselves even by buying one of higher price .

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Mo Amini

Mo Amini, Born for business, love business, think business, live business.

Mise à jour il y a 122w · L'auteur dispose de réponses 75 et de vues de réponses 3.1m

For the purposes of creating a million-dollar gadget there are a number of factors that you need to consider. I'm going to list the four of the most important stages of creating a viable product and mass distributing it.

Number one.

Your product, or gadget needs to be able to solve a fundamental problem in the lives of the ordinary consumer. When you have this aspect of your product spot on, then you can move on to creating a prototype. The difference between a gadget and a million-dollar gadget, is the difference between the solution it provides for a problem. If the gadget has solved a problem that effects a mass market, then a number of things will happen:

1. More accessible funding.

2. Worldwide press.

3. Maintaining a high level of competitiveness.

Above are benefits that will make or break your business. More accessible funding means that you can get your business off the ground, start employing people, start producing, mass producing, distributing and so on. Worldwide press is highly beneficial in the sense that it provides a free source advertisement for you market to become aware of your product. This means that you can spend relatively little on marketing and advertisement as opposed to when you have a product that doesn’t fundamentally come up with a solution for a problem. Maintaining a high level of competitiveness is also very important because consumer spending in gadgets, be it cooking gadgets or something else, is budgeted. A willing customer may go into a retailer, and pick and choose between your gadget, or another gadget that’s in a completely different market. It’s rare that they’ll purchase both at the same time.

So that’s number one, make sure your product or gadget provides a solution to a problem for a mass market.

How does a gadget become a million dollar selling item? When does it stay stuck in being a couple bucks gadget?

Number two.

Once you have validated your product by conducting some thorough market research, and found that there is great interest and demand for your product, you need to start building a team. Building a team will usually come after you have sourced some type of funding. There are a number of things that you need to look out for when looking at who and in what field you should employ.

First, get a pen and paper out, let’s go old school. Start writing your business model out. From the point of getting an order, to manufacturing, to distributing. You can get an assistance of a business consultant to do this if you feel that you’re unfamiliar with the processes involved. Once you have done that, you need to figure out what ‘people’ are involved in the process. For example, you may see that for manufacturing your product you need specialist designers, people who have specialist skills and start looking around for these types of people.

This will give you a solid team that you can rely on. When recruiting, you need to make sure that these individuals shows interest in your business and your product. You need to make sure that they have a passion for what they do. You have to make sure that they are capable of carrying out their roles. You have to make sure that they are self-motivated, because in a startup, often there are challenging times that you need to overcome and this can be stressful for you and your employees.

That’s point three, make sure you employ the right people and build an effective team.

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Number three.

Once you have come up with a product that’s a solution to a wide consumer problem, and have written a business model, and built an effective team, you need to start getting orders. There are a few methods you can use to monetize your product.

1. Go directly to the customer.

2. Go directly who wholesalers.

3. Go directly retailers.

In that order. Let me explain why.

When you directly go to the customer, your product receives feedback from the market. This can be directly or indirectly. This means that your product gains awareness to the public and starts generating you some revenue. You can use this method by building your own website or sell though another website such as eBay. One you have sold a number of products and received positive feedback, you can go onto selling to wholesalers.

Wholesalers look for a ‘sure thing’ when it comes to bulk purchasing. This is because a wholesaler doesn’t want to risk unsold stock if the product turns out to be, effectively, shit. So you need to have proof as to your products demand from the market. This is why directly selling to the customer is number one. Once you have sold the products and received complimentary feedback on it, the wholesalers will be more willing to purchase your product because it has already shown a successful streak. Once you have sold to the wholesalers, and they are pleased with their orders, you can then move onto retailers.

This is where the big money comes in. Your profit margin is going to be squeezed but the mass of sales will mean that you’ll be making profits above all other methods explained above. This is because a retailer such as Tesco, have thousands of stores all around the globe, they have connections and networks that can help you with your business, which means that you have a potential for a supremely large distribution network to get your product out there. But, you are more likely to get a contract with these large retailers if you have a proven track records and history of previous and successful sales.

So that’s point three, you need to monetize your product. You don’t have to necessarily choose the strategy above, but that is a good overall method. One advice, make sure that you keep in mind your liquidity position at this point. When you start selling to wholesalers and retailers, they often ask for trade credit. This can severely upset your cash flow, and we all know, an upset cash flow, can kill your business. So make sure you have forecasted all expenses and all incomes with provisions because being prudent is better than over optimistic.

Number four.

If you reach this stage, congratulations on your venture! If you’d like I can leave my PayPal account details for a sly tip. With that said and out the way, your fourth step should be to expand your business. Every product follows what is known as a product life cycle. This product management tool allows you to identify at which stage of its life a product is. Once your product starts to see a decline in sales, you know that it’s time to introduce *your product* 2. Your second piece of innovation. It can be the same product, just improved, or a different product entirely. The point is, you have to come up with a new product to sustain revenue streams and profits.

Apple does this every time a new iPhone comes out. Sony PlayStation does this every time a new one comes out. The point is every business continuously innovates in an attempt to introduce new products into the market, as soon as the other hits ‘maturity’. That’s the goal.

This encourages brand loyalty, which are similar to having followers on Quora. You may write a few answers and a lot of the viewers will not be your followers, but a good percentage of your followers read your answers every time you write one and make up a good percentage of your total views. Every time you write an answers you get new followers to add to your existing ones. You want as many followers as you can get. In the same sense, you want as many loyal customers as you can get. You can do this by providing quality answers, in the same way that you will have to create quality products.

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So that concludes the fourth point, which is to expand your enterprise, innovate new products, and focus on providing benefit. You can also ask for my bank account details and transfer some money there too. Your choice!

To answer your question on “when does a product’s price reduce to a couple of bucks per unit”.

For this part of the answer, there are many factors that can dramatically reduce the price of your product. But this does not mean a bad thing about your business or its product. Let me explain, I’m not sure if you’re familiar with ‘economies of scale’. It is the idea that the more products you produce, the cheaper each unit of product will be because the fixed costs of your business (i.e. Rent, Salaries) will be spread out over a larger base. So the more products you make, the cheaper each product is to produce individually. You can use this to your advantage in two main routes.

1. You can choose to reduce your price based on the lower costs, which may result in increased sales and maybe increased profitability.

2. You can choose to keep the price the same, but incur a higher margin for profit, which will increase profits considering the level of sales stays the same.

The path you choose will depend on the ‘price-elasticity of demand’ of your product. I suggest you research into PED and come to a conclusion as to which route you should choose to maximize profits. The product usually tends to become the cheapest in its lifecycle when it is being mass produced, therefore when you’re selling to the retailers and around the time of expansion.

How does a gadget become a million dollar selling item? When does it stay stuck in being a couple bucks gadget?

This graph shows the effect of price elasticity of demand.

If you liked this answer, then make sure to check and my profile and maybe give me a follow: Mo Amini

John Hagen

John Hagen, Beta Testing (2015-present)

Répondu il y a 55w · L'auteur dispose de réponses 445 et de vues de réponses 354.6k

There has to be a real use. Take the Roomba as an example. This device moves around and vacuums your carpet without making you do anything. There is a really big convenience factor here, and people are willing to pay for it.

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