How to introduce and start selling your product; Give the product away
GIVING THE PRODUCT away might seem crazy—but in some cases it is the only way to establish it in a new market. When a product is revolutionary, few people want to be the first to try it, so asking
them for money up front often simply creates a barrier. In some cases, this is just something we have to live with, but if owning the product means that the customer will have to buy repeatedly, giving
away something that creates a dependency is good business. There are many examples in practice of products that are sold cheap, with the company making its money on the peripherals. Spare parts
for cars are an example—the cars are sold relatively cheaply, but genuine spares are expensive, because that is how the manufacturer makes money. There is no reason at all to be wedded to the idea
that every product that leaves the factory gates has to have a price tag on it, and many companies have succeeded admirably by giving products away.
What you should do:
• Identify products that carry a long-term commitment to buying
peripherals, spares, or other consumables.
• Decide your target market—there is no point giving out freebies
to all and sundry if they aren’t going to follow through and buy
your product later.
• Make sure you have good intellectual property rights (patents,
etc.) so that nobody can enter the market with knock-off
consumables that work with your giveaway product.
them for money up front often simply creates a barrier. In some cases, this is just something we have to live with, but if owning the product means that the customer will have to buy repeatedly, giving
away something that creates a dependency is good business. There are many examples in practice of products that are sold cheap, with the company making its money on the peripherals. Spare parts
for cars are an example—the cars are sold relatively cheaply, but genuine spares are expensive, because that is how the manufacturer makes money. There is no reason at all to be wedded to the idea
that every product that leaves the factory gates has to have a price tag on it, and many companies have succeeded admirably by giving products away.
What you should do:
• Identify products that carry a long-term commitment to buying
peripherals, spares, or other consumables.
• Decide your target market—there is no point giving out freebies
to all and sundry if they aren’t going to follow through and buy
your product later.
• Make sure you have good intellectual property rights (patents,
etc.) so that nobody can enter the market with knock-off
consumables that work with your giveaway product.
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