Hi,

I would like to know what are the best options if you want to commercialize a new product. Does anybody here have experience with that? Something like a gadget or just a PCB with a special function etc.

I know several options but would like to hear your experiences.

The goal would of course be to reach as many people as possible so I imagine the following could work:
- putting a product demonstration on youtube
- selling it directly on ebay or other auction sites
- create your own website (but does that make sense selling just one product?)
- start a project on kickstarter or another similar site

Any thoughts?

 

Post it on relevant forums (potential users!) that allow commercial postings.
Max.

 

Post it on relevant forums (potential users!) that allow commercial postings.
Max.

Yes, that's a good idea!

 

Another advantage to the relative forums, is that there is word of mouth and feedback, and many also, good or bad, inform you how you can improve it!.
Max.

 

Ok, but where do I actually sell it? Better on Auction sites? Better have a dedicated website?

 

Jameco Electronics has a kit program that might interest you.
http://www.clubjameco.com/index.php/contents/view/23

 

It sounded good until I read the commission they pay... 5 to 10%? It must be an outstanding product which makes thousands of sales to get you some profit... Depends on the price tag of course. They can probably sell it for more under their name...

 

Ok, but where do I actually sell it? Better on Auction sites? Better have a dedicated website?

I would first get it out there, via the forums and ebay.
Ebay, key words are the important thing.
Max.

 

It depends on the product and who it needs. You already have our

attention...what is your product.

 

You already have our

attention

LOL. That wasn't the purpose. Too early to disclose.

 

Google...shark tank..a program that quizs People about there products.

 

how to efficiently sell something

I believe mankind has struggled with that question since the first merchant had an idea.

The website is pretty efficient and is available 24-7. Your web provider should be able to provide you their uptime statistic and the period that covers. If your website was guaranteed to be UP 99.999 percent of the time. This of course does not take your webmaster abilities into account, as poor webmaster abilities could have disastrous effects on your website.

Ebay has "store fronts" as well as auctions. Do that in addition to your blog to see which is better. You can decide on the efficiency metric.

 

None-the-less, loosewire makes a very important point. The best way to market something is highly dependent on what the something is -- and who the market is, and whether it is very novel or has well-established competitions, and whether it is something that people will readily see they need/want, or whether they will need to be convinced of one or the other, and whether it is low priced or high priced, and whether it is a one-time buy type of item or something that is going to generate repeat sales to the same customers, and ....

Think of as many of those types of questions as you can and rough out the answers. Then you can start asking yourself questions like, "Would my target audience be likely to ever even come across my listing on E-bay?" and, "Would my target audience be likely to respond to a radio advertisement?" and lots of other, similar questions. The answers should go a long way into steering you toward the more effective marketing options for YOUR situation.

 

I'll take the liberty of replacing 'commercialize' with 'profit from'.

I follow a basic philosophy, Where there is need, there is opportunity for profit.

Identify your potential users, both in their need and their financial capacity. Address your target market and demonstrate the features and benefits. Seek new market segments, and most important, listen carefully for 'needs'. Even if you can't fullfill a need, maybe you know someone who can, and then that 5-10% commission suddenly has a new meaning.

 

I'd start with Ebay, I have made quite a profit......sometimes.

 

I'll take the liberty of replacing 'commercialize' with 'profit from'.

I follow a basic philosophy, Where there is need, there is opportunity for profit.

Identify your potential users, both in their need and their financial capacity. Address your target market and demonstrate the features and benefits. Seek new market segments, and most important, listen carefully for 'needs'. Even if you can't fullfill a need, maybe you know someone who can, and then that 5-10% commission suddenly has a new meaning.

My father had the need for a little device like that and then I read on several forums from people who have the same need... So posting on the appropriate forums seems to be a good idea. It's an automotive related accessory so I won't go into details.

As for the financial capacity... I mean a seller always wants to sell for the highest price possible, whereas for the buyer it's the contrary. I never understood how prices are being established when a product is first launched

 

I never understood how prices are being established when a product is first launched

Major corporations have the same question and still don't agree on the best answer. There are a variety of routes - from test markets (a specific forum, for example), to focus group interviews, to Chinese auction (launch high and lower the price until you get the volume/price combination that is acceptable to you.

Also, most family-owned businesses have margins less than 3% so the 5 to 10% commission paid by Jameco is not bad - consudering that you have no inventory, no advertising, no distribution costs or effort, no product liability insurance, no incorporation costs to minimize personal financial risk from lawsuits. All of your profit can easily be lost in dead inventory as a better mouse trap starts competing with your mousetrap. Remember, you cannot patent an unmet need or new market, you can only patent your solution for that unmet need. There are dozens of solutions for each problem.

Risk and dead inventory are your biggest expenses - they are hard to measure and converting to cash is key to success.

Note: look at the stock market data and you will realize that most corporations have margins below 5%.

 

"I never understood how prices are being established when a product is first launched".



Just ship me one, and I'll give you a great review.

 

I have to agree with what WBahn said. It all depends on the product and your audience.

You may have seen my STM32F DSP post. This is a specialized product. I know my audience and I know what the competition sells for. It is unlikely that someone from AAC or eBay would want to buy mine. For starters I will be relying on word of mouth. When other users in the field find out about what I have I expect them to come knocking. I don't intend to start a huge marketing campaign. This way I can keep my overhead low and minimize my risks.

Take for example the $16,000 4Gsps A/D PCI board. Not too many folks in the world would want one. But those who would end up buying it know that they must have it. These are highly specialized markets.

At the other extreme, look at how the Raspberry Pi was introduced to the market. At $35 you wonder what is their profit margin. It would make an interesting exercise to study their financial statements.

 

dead inventory are your biggest expenses

That's why I thought kickstarter would be a good start, you do market research before actually making tons of the product.

I am reluctant though because you have to expose yourself, I do not like my name to be found on Google...