Selecting New Products and Services

To keep a company viable, it is important to continually look for new products and services. Several factors should be considered when selecting new offerings. I focused on products that were relatively difficult to sell, required immediate and specialized service, and consumed some type of consumable. Let’s look at each of these factors.

If a product doesn’t require demonstrations and explanations, it can likely be purchased more cheaply elsewhere. Products that require immediate and specialized service can generate an income stream through service fees and the sale of annual service agreements. Products that consume supplies offer ongoing revenue for the life of the equipment—typically five to seven years.

I found that attending industry conventions and meetings was an effective way to discover new sales opportunities. Visit booths, talk to vendors, and—most importantly—speak with fellow dealers to learn what they’ve discovered and what might fit your needs.

Early in my business journey, I was often the first to adopt new products. While this approach had some success, I eventually learned that allowing others to be the earliest adopters was a more effective, less frustrating, and less expensive strategy for selecting new products.

Check next week’s blog for what I believe is the most important thing I learned about finding the right new product for your company.

Keep reading our blog, or if you want to Wright Your Business immediately, book a 15-minute Google-Meet meeting to explore the possibilities.