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Product Launching - The Tale Of Two Products

Jan 1, 2008
One of the key questions you will need to ask when it comes to product launching is an important one in relation to how you market the product. The question is this - what is the sales potential of the item you will be selling?

In our tale of two products we look first at a hand crafted wooden box. This box has hand carved accents on the top and comes with a velvet-lined interior. These boxes are also the work of one recognized wood artisan. Several movie stars and even a few well-known politicians have commissioned special editions of these wooden boxes. When these special editions are ordered it typically takes 4-6 weeks to complete and orders must be insured when shipped.

The second product is also a wooden box. It is machine tooled. It has a felt lining that is placed on an assembly line. Thousands of these boxes can be assembled each day and orders are often shipped out overnight. These boxes can be customized for corporate giving and artwork can be laser engraved with names and company logos. The box is designed to hold other specialty gift items from the company catalogue.

It doesn't take long to see that the primary difference between these two similar products might be the difference between a Rolex and a Timex. The first product is a product of luxury, an item designed to be an heirloom and one that will not be found in most homes.

The second product will likely be a tasteful gift presented at company Christmas parties and as a cherished gift among friends and family. It is both a deluxe carrying case for other products and a keepsake for other bits of memorabilia.

This tale of two products looks at the law of supply and demand. In the first case the supply is limited and the demand is generally slightly higher than available stock. What this means is that the consumer places a higher premium on the product and is more than willing to compensate the artisan for their one of a kind work. In the end fewer units will be sold, but the price per unit will be significantly higher than other wooden box manufacturers.

The second scenario will typically find a ready supply of the assembly line boxes with quick turn around on customized boxes. While this will not be an inexpensive gift it will be an affordable gift. The business owner will accept a lower profit margin simply because they believe they can sell enough units to improve their overall bottom line profits.

Which company will succeed? Perhaps both.

The move toward product launching will likely have you seeking to identify if this is a highly specialized product or something that has mass appeal and is easy to manufacture. Once that is determined it is possible to develop a marketing strategy that is in concert with your actual business needs. This is an important step when moving toward the launching of any new product in your online store.
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