How do I test the market?

[FutureRichardBranson]

I have a product/service that I want to start. It's only small (£3 ish profit per item) but selling in high amounts will probably make it good. I have a mark-up of just under 100% (I think it was about 96%) which means if I purchase £50 worth of stock I could potentially sell it all and get just under £100 revenue (just under £50 profit). Which I think is pretty good.

However.

I haven't spoken to anyone about it. My target market is young entrepreneurs/ business people aged about 20-28. I am in this market hence why I think it's a good idea, but I don't know any other entrepreneurs/ business people around this age. I don't want to start it, tell everyone, order stock then close a few days later because no one will buy or it's priced too high.

My idea is similar to Man Packs (you'll have to google, I can't post links!) whereby I take a monthly subscription payment and send the product(s) to the customer every month. Any ideas how I can test the market without tying myself in for the long run if it doesn't work? (For example if only one person buys a subscription and no one else does then i'll have to keep sending the product(s) to them until they want to cancel)

 

[Nologo]

Hi Future,

Might be worth looking at Free Survey Monkey... haven't tried it myself but looks like a good resource

 

[Tim Coulter]

Here's a technique that was recently recommended to me (by someone in this forum actually - thanks Gary).

I am in the process of doing exactly as the article describes for a new service that I am hoping to launch. It's a little too early to know if it will work as well as the author claims, but I am optimistic.

 

[bobreynalds]

I would recommend that you take the time to order some stock and locate people in your demographic. Find people either online or in your local area who meet your requirements for age. Finding local businesses isn't hard, but you may have to pound the pavement and walk into every location until you find enough people within your specific age group. Give them the product and ask in exchange that they give you an honest review. It would also be helpful if you were to create a survey before you give them the product. You could ask questions about what they would spend and other things you need to know before you invest to much into the project and lose your shirt.

 

[FutureRichardBranson]

Here's a technique that was recently recommended to me (by someone in this forum actually - thanks Gary).

I am in the process of doing exactly as the article describes for a new service that I am hoping to launch. It's a little too early to know if it will work as well as the author claims, but I am optimistic.

Tim, that's perfect! How's it going for you? Do you have many email addresses from your landing page?

 

[Tim Coulter]

Do you have many email addresses from your landing page?

I only just published the landing page and I am still waiting for my graphic designer to send me the logo that will be used on the landing page and the associated Twitter profile.

So, in answer to your question, there's not been much interest so far, but the page has only seen a tiny handful of visitors. Once I start the traffic campaign (in the next few days) I am hoping to see some results.

 

[DavidP2P]

Hi FRB!

At this moment in time it's your word against the default "no" answer that the market has, while they are being bombarded with at least 1,000 other marketing messages per day.

If the product is so good and useful to, what YOU believe to be, your target audience why don't you offer it for FREE in exchange for some authentic testimonials (video best) from others? Why not Survey Monkey, and GIFT it to them? You could send them to a webinar where you do a live explanation and demonstration of the product.

Now you have more ammunition to tell others, rather than relying on what you think. Create a mini-website from there to get people to opt-in, so they can watch a replay of the live webinar, that includes the upsell.

PS You are going to need a higher-priced upsell item complimentary to your £3 offer, as that alone needs A LOT of sales to make it worthwhile financially. For me, the £3 offer is just a lead-generation vehicle for something else you need to be offering.

Best wishes on your venture FRB!

David

 

[FutureRichardBranson]

Hi FRB!

At this moment in time it's your word against the default "no" answer that the market has, while they are being bombarded with at least 1,000 other marketing messages per day.

If the product is so good and useful to, what YOU believe to be, your target audience why don't you offer it for FREE in exchange for some authentic testimonials (video best) from others? Why not Survey Monkey, and GIFT it to them? You could send them to a webinar where you do a live explanation and demonstration of the product.

Now you have more ammunition to tell others, rather than relying on what you think. Create a mini-website from there to get people to opt-in, so they can watch a replay of the live webinar, that includes the upsell.

PS You are going to need a higher-priced upsell item complimentary to your £3 offer, as that alone needs A LOT of sales to make it worthwhile financially. For me, the £3 offer is just a lead-generation vehicle for something else you need to be offering.

Best wishes on your venture FRB!

David

Yeah I was thinking about the upsell thing. There isn't much that I can do to upsell. What makes it better though is it's not just 'buy one then that's it', it's a subscription so the customer pays monthly and I make £3 a month from the one customer. So if I have 100 customers (in a perfect world where none of them cancel) I don't just make £300 profit, i'll make £300 profit every month that the 100 are subscribed.

 

[DavidP2P]

You still need to be thinking about your sales funnel and other products if you are going to be a Future Richard Bransen. "Start small THINK BIG" You are on the right track with part one, but part two is where the entrepreneurs of the world live. You need to get the 100 people that don't drop out to make £300/month. Think about the big picture of your business model, or just use this as an exercise that you can replicate elsewhere in another niche.

 

[FutureRichardBranson]

You still need to be thinking about your sales funnel and other products if you are going to be a Future Richard Bransen. "Start small THINK BIG" You are on the right track with part one, but part two is where the entrepreneurs of the world live. You need to get the 100 people that don't drop out to make £300/month. Think about the big picture of your business model, or just use this as an exercise that you can replicate elsewhere in another niche.

I'm just using it as a way to release some of my entrepreneurial energy If I start to get good popularity with it I know where I can go from there. I will start another business related to it and the original business will be an additional service provided by the main (new) business, if that makes sense. (So the main earner will be the new business that will open up off the back of the subscription business, whilst the subscription one continues along side the new one)

Oh, and thinking big is what I do most of the time. It's pretty annoying at some times but I can't help it