When launching a product, there are a lot of factors or variables that play a major role in determining the success or failure of the business and due to that reason, making the right decisions can be quite difficult as a result of what’s at stake.
Hi everyone my name is Timileyin and in this post, i will be showing you 4 ways to help your business save more money and sell more in a cost effective approach.
When making decisions in your business, you need to be extra careful so as to avoid losses in the purchase of your product and also attain maximum customer satisfaction with cost being effective.
One of the things you can leverage on is any historical sales data you have as it relates to your product but in the event that you can’t lay your hands on any, you can then utilize your market research strategy and your intuition.
How then can you grow your business in a cost effective approach
1. Set a projected sales volume
One basic way to project your sales volume for your product is largely dependent on the amount of information you have based on it.
If you don’t have any information about the product as it relates to the volume to expect at a particular period in time, then you can carry out a research on the potential figures to expect in your market space.
Even with your available data, it doesn’t guarantee a perfect prediction but it can only serve as a guide when making decisions.
2. Choose an approach for your returns
There are generally two ways of going about your sales expectations, these two ways are overestimating and underestimating.
If you want the more safe approach, then you buy the lowest grade of inventory for your product launch.
This approach has it’s benefits which are :
- The funds saved from inventory can be channeled into another section of your business like marketing.
- You are not at the risk of having too much inventory
The second approach is obviously the opposite of the first which is to purchase excess inventory .
The benefits for this approach includes
- Higher sales and higher revenue provided your product is loved by customers.
- Your customers won’t have to go to another store to buy products because before the needs for new products arise, the supplies are already ready.
If you’re just starting the business, it’s advisable to go for the safer approach where you don’t need to purchase much inventory. Another guide to this is the life span of your product, if the product is to expire early then you should go for the safer approach.
3. Irrespective of the choice you made, control your reactions when the product launches.
When you launch your product, you have to remain calm even if you aren’t seeing what you have projected to happen within the first few weeks.
Don’t take any drastic action that’ll tamper with your product or market. Remember, Coca Cola only sold 25 bottles in their first year. I’m not saying that you’ll wait that long but what i’m trying to instill here is the value of patience.
Bear in mind that no situation is permanent, change is constant ; therefore you should bear in mind that there could be sharp increase in demand that can shoot your product purchase up and that could be the beginning of exploit in your business.
When that happens, you can then begin to see how your sales volume is and how it can be further improved upon.
When trying to make your product go public and you are sending out messages to potential customers, you need to be careful when doing that. This brings up the importance of doing a customer research on the messages to send , how to send it, how to compose it and so on.
4. Constantly analyse and control your future projections.
When going about this, the major factor that determines any change is the latest information about product in terms of the financial inflow, customer satisfaction, challenges faced and so on.
This process doesn’t actually end, that’s why the quality control department is set up in virtually every organisation.
Having the right amount of information can help a great deal when it comes to making decisions such as purchase of inventory and so on.
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