Diana Ransom at Smart Money offers four tips on launching a new product in the current recession:
Launching a new product when consumer confidence is at an all-time low is daunting enough for large companies. But for small businesses, if the product doesn't take off, it could be devastating.
"Even if what you're offering is packed with value, consumers just aren't willing to spend money on anything nonessential these days," says Jeffrey Cornwall, the director of the Center for Entrepreneurship at Belmont University in Nashville, Tenn.
Even if you think the timing may be just right for introducing a new product or service, offering a perk or two to customers can't hurt, says Cornwall.
Her tips include being flexible on the terms and contracts associated with your new business, offering strong guarantees, find a way to sell smaller and less expensive offerings, or better yet, find a way that you can offer lower prices while still making a buck.
This is a great article with some very good suggestions. I agree that a guarantee can be a great way to minimize a prospective buyer's fears. I think you could accomplish something similar by highlighting client testimonials. This is especially important for small businesses and entrepreneurs who are not well known.
I disagree with the point on lowering prices. This may help, but it also decreases the perceived value of the product or service. Lowering the price means you are not differentiating yourself - and you are likely going to be attracting clients who are looking to buy solely based on price. This may work for some businesses, but could be detrimental for others.
Great article overall. Thanks for posting the link, Jeff. I'll be stopping by here often to read your thoughts on entrepreneurship!