6 Reasons Products Fail
History is jam-packed with products that failed to take off in the market. Sometimes the market isn’t ready for the product, but that is rarely the case. Well, there’s nothing that crushes your soul quite like seeing a product you thought would sell like a hot cake fail.
Take heart – it happens to even to the best of companies. According to a report from McKinsey Global Institute, 25-45 percent of new products fail to sell, with only 4 out of 7 new product ideas reaching the product development stage. No matter how you look at it, the product development process is riddled with failure. Interesting enough, that’s pretty normal.
Here are 6 reasons why new (and sometimes established) products fail to sell.
1. Poor Timing
Again, some products don’t get the deserved reception because the market is simply not ready for them. You see, for a product to sell – and sell big, it should be introduced in the marketplace at the right time. If it happens to reach the market at an unsuitable time, the chance is that it will become a big flop. If you are a book publisher, for instance; you cannot introduce a new textbook in the middle of the school-year and expect fireworks.
2. Wrong Pricing – Too Low or Too High Price
Another obvious reason for product failure is the price factor. If your target market consists mainly of lower or middle-income buyers, for example, it would be a terrible idea to produce a high-priced product. Sometimes this happens organically because of high costs of distribution and production. That’s where initial thorough market research can come especially handy.
3. Sinfully Low Quality
It’s a no-brainer that a low-quality product will fail to sell. No sane customer would cough up his or her hard-earned dollars knowing that a product is shoddy. To avoid this, a company has to have a quality assurance team in place. This way, a product can go through loops of quality assurance before hitting the market.
4. Presence of a Defect
If there’s an inherent flaw or defect in your product, it can pose a huge danger to the consumer. If that is the case, there’s a 100% chance that it will do terribly in today’s market that’s filled with tech-savvy and well-informed customers. Even if the defect will be rectified, it’ll not get enough buzz and it might still fail to sell.
5. Poor Promotion
Rigorous marketing of the product or brand is especially crucial during the formative/introduction stage. Poor promotion (or lack of it) can prove to be disastrous for a product launch. If you don’t market your new product enough, you might end up with truckloads or warehouses full of unmovable stock.
6. Poor Distribution
You can sell your product in three ways: (1) sell directly through your online/physical store, (2) sell to a retailer who’ll sell to consumers, and (3) find a distributor who’ll sell to retailers. The third option is often the most important because it allows your product to reach as many customers as possible. If you fail to score reliable distributors, your product might fail right from the outset.