Many clients come to us for product customization, which usually falls into two situations: developing new products or modifying products they already have. The former involves creating private molds. If successful, it can bring significant profits. However, if it fails, you might suffer a huge loss.
First, creating private molds needs a very high cost. Factories typically charge $10,000 to over $100,000 for each mold. Startups that have never customized products are completely unaware of this huge expense. Just like our client Mazin ——- click here to learn more about his story. Moreover, factories usually set high MOQ for product customization.
Additionally, product testing also costs a lot, as the product’s appearance and functionality need several improvements before a final product is made. All of these require you to have sufficient funds in the early stages.
Second, developing a new product takes a long time. A product must be tested and improved before it’s launched, and the molds also need adjustments based on feedback. Finalizing the product and starting mass production takes at least 3 to 4 months, sometimes even more than half a year. It’s easy to miss the best time to sell.
Third, the trial-and-error risk in developing new products is high. Without sufficient market research, the unique product might not meet your target market’s needs and preferences, resulting in poor sales. I must say, never choose products based on your feelings. Many of my clients have made assumptions and ended up failing. In reality, it’s essential to analyze data, such as consumer reviews, sales of competing products, and so on.
Fourth, developing a new product inevitably involves patent issues. Applying for a patent is a complex process, especially for utility patents. You need to find a patent agent to prepare patent application documents and submit them for examination by the patent office, which takes at least a year. Moreover, the approval rate for patent applications is not 100%. And the application fees vary by country, for instance, it costs about $14,000 in the United States.
Therefore, developing products from scratch is a game for big sellers with sufficient funds, as they have many opportunities for trial and error, and their ability to research the market far exceeds that of small sellers. It’s wise for small sellers to improve their existing products.
Most of our successful small and medium-sized clients have done just that. They modify existing products in terms of color, material, size, shape, function, etc., and start their business with a small amount of money.
For example, we have a client who sells pizza peels. He found that most pizza peels on the market were made of stainless steel or aluminum, but the rare bamboo ones also had many positive reviews. So, he started selling bamboo pizza peels and differentiated his product by emphasizing consumer health and environmental protection as selling points. Ultimately, he achieved high sales.
The eco-friendly concept is very popular. The case of laundry detergent sheets we shared last time was also marketed with an eco-friendly concept.
So, new sellers often lack the capacity to develop brand-new products, but it’s relatively easy to differentiate by improving existing products. Because these are usually stocks from suppliers, you don’t have to worry about high MOQ, or whether the improved product will be popular among consumers. This means lower procurement costs and less money to start. You then have the opportunity to test several times to find a good-selling product.
Finally, I want to tell you that beginners really don’t need to overthink. Start with a small investment, and then gradually get to know your product and market. You can accumulate a lot of experience during this process.
Many of our clients also know nothing at the beginning. They sell whatever the suppliers had. Gradually, as they became more familiar with the products, they started to have their own ideas, such as upgrading products to make their private label products.
Also, don’t expect to find a product that will definitely sell well, because best-sellers are often the result of testing. No trick can guarantee that you will select 100% winning products.
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Jingsourcing is a leading Chinese sourcing company that helps medium and small businesses import from China. If you want to improve your products, feel free to contact us at any time.
Thank you for this newsletter. My first product was a mold I had made for me. It was about $2,800. The product is not selling as crazy as I thought it would.
I consider just making minor differentiations with my next products since people are still making good sales with little to no innovations.
This was very good information and I will follow up for more ideas thank you