Saturday, December 17, 2011

Ten ways to evaluate the market

1) Urgency: How urgently do people want or need this right now
2) Market size :  How many people are actively purchasing things like this?
3) Pricing potential: What is the highest price a typical customer would pay for a solution
4) Cost of customer acquisition: how easy is it a to acquire a new customer? On average, how much will it cost to generate a sale in both money and effort?
5) Cost of value delivery: How much would it cause to create and deliver the value offered, both in money and effort? Delivering files via the internet is almost free, inventing a product costs millions
6) Uniqueness of offer : how unique is your offer versus competing offerings in the market and how easy is it for potential competitors to copy you?
7) Speed to market: how quickly can you create something to sell
8) Up front investment: how much will you have to invest before you are ready to sell
9) Upsell potential: Are there related secondary efforts that you could also present to purchasing customers? (Customers who purchase razors need shaving cream and extra blades as well; buy a frisbee and you wont need another unless you lose it)
10) Evergreen potential: Once the initial offer has been created, how much additional work will you have to put into it in order to continue selling?

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