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Hi Matt,
I was not directing
Hi Matt,
I was not directing my comments at you, but more at the SC vendors in general.
Actually, I think you have done a great job marketing your products within the SC community - your color insert in the last report was outstanding, a real eye catcher and very nicely done.
If you are contemplating investing 40K or more in a product, I do hope you have done a lot of market research. That is serious money by anyone's standards. I have several pieces of equipment that are in that range, and believe me, I would look long and hard before adding to them. One thing I would do is asses my local market, and see if I would get a good return on my investment - I would expect 20% or more if I had to finance a purchase.
For your specific example, I am taking a WAG and assuming your want to bring a kit to market. With your background, I have no doubt it will be well engineered. But, that is not enough (just ask Betamax owners). You will need to have a budget for marketing your item. Who will buy it? Where will they find it? Are you going to go the distribution route, which, while cutting your profits, may increase unit sales? Or use your current model of direct sales? Either way, you will need to quickly build product awareness outside of the limited confines of the SC membership. Perhaps an ad campaign in FineScale Modeler if the product does not require fabrication skills. If it does, then it might pay to at least make arrangements with foreign distributors and hit those markets, England, Germany for certain, and perhaps the far east.
I would give a lot of thought, as I am sure you are doing right now, before investing so much money in a product with limited appeal, and be sure if you do, you have an integrated marketing plan in place beforehand. Clearly you put a lot of thought and passion into your products, but you still need to see that return, else you would be better off buying a Subway franchise - you will get at least some return, and free lunches!
Either way, good luck with your line!
Cordially,
Kurt
I was not directing
Hi Matt,
I was not directing my comments at you, but more at the SC vendors in general.
Actually, I think you have done a great job marketing your products within the SC community - your color insert in the last report was outstanding, a real eye catcher and very nicely done.
If you are contemplating investing 40K or more in a product, I do hope you have done a lot of market research. That is serious money by anyone's standards. I have several pieces of equipment that are in that range, and believe me, I would look long and hard before adding to them. One thing I would do is asses my local market, and see if I would get a good return on my investment - I would expect 20% or more if I had to finance a purchase.
For your specific example, I am taking a WAG and assuming your want to bring a kit to market. With your background, I have no doubt it will be well engineered. But, that is not enough (just ask Betamax owners). You will need to have a budget for marketing your item. Who will buy it? Where will they find it? Are you going to go the distribution route, which, while cutting your profits, may increase unit sales? Or use your current model of direct sales? Either way, you will need to quickly build product awareness outside of the limited confines of the SC membership. Perhaps an ad campaign in FineScale Modeler if the product does not require fabrication skills. If it does, then it might pay to at least make arrangements with foreign distributors and hit those markets, England, Germany for certain, and perhaps the far east.
I would give a lot of thought, as I am sure you are doing right now, before investing so much money in a product with limited appeal, and be sure if you do, you have an integrated marketing plan in place beforehand. Clearly you put a lot of thought and passion into your products, but you still need to see that return, else you would be better off buying a Subway franchise - you will get at least some return, and free lunches!
Either way, good luck with your line!
Cordially,
Kurt
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