In today’s retail environment, small retailers need to be thinking about what the “Next Big Thing” will be. Some products can create such a buzz that everyone gets excited about them. But, every retailer knows that selling new products can be a challenge.
Ready… Set… Promote!
The first rule of any new product sales strategy is to know the product. Because it’s new, you’ll have to spend time researching the features and benefits, as well as the target market. You need to become an expert on every aspect of it, so you can answer your customers’ questions. If you don’t, you may lose the sale.
Once you have a better understanding of the product, it’s time to develop a strategy on how to sell it. We have compiled a list of 4 tips for a successful new product launch that you can easily follow and implement.
1. Create a Sales Plan
Your sales plan will determine the price and placement within the store. After all of your research, you should already have a good idea on the price. Make sure it’s in line with your competition, but don’t lose too much of your margin. Find your pricing sweet-spot. For new product placement, be attuned to your customer’s behavior patterns and follow basic placement techniques. The sales plan also incorporates employee training on how to sell it. This will also get them excited about the new product.
2. Set Goals
The general rule concerning setting sales goals is to be realistic. You can still be optimistic, but your goals need to reflect the potential market, the product, and your actual market. Make sure the goals are measurable and specific. Including your employees on these goals may drive sales higher, so find the right incentives for them to get motivated and watch those sales grow!
3. Marketing
You’ll need to create a marketing budget to cover the additional costs in promotions and advertising for the new product. Many of these are simple and won’t cost very much, such as updating your website and spreading the word over social media. All promotional items and discounts will come out of this budget.
A smart way to market a new item is to give it to your best customers. Having customers try out a new product can start a word-of-mouth campaign. Then, you can ask them what they thought of it. Plus, their review of it will help drive sales, while giving you a better understanding of your target market.
4. Focus on Sales Motivators
Knowing the features of your new product is important, but research has shown it won’t drive sales. The key to driving higher sales is promoting the benefits. When you motivate your customers to make a purchase, you understand their needs and tailor your message about the new product to fit their lifestyle. One easy way to do this is to think about how this new product make their lives better. Answer that and you’ll have their motivation to buy it.
Looking toward the Future
As a small business owner, you know that you have to understand the market in order to compete. Once you have set up a strategic plan for one new product, you have a model to follow and only need to make minor changes in your plans to fit each product that comes along. New products can lead to new markets.