How to Find Out If Your Product Is Viable | Business Town

How to Find Out If Your Product Is Viable

 How to Find Out If Your Product Is Viable Is your target large enough to sustain your business? How much are your customers willing to pay for your product? Learn how to find out if your product is a good fit for your market.

 

How do you tell if your product is viable? Hi, I’m Chanel Lindsay, founder of Ardent, and my product is a decarboxylator. I’d love to tell you a little bit more about how I determined that my product was going to be a good fit in the market and that I’d be able to successfully build a business around it. A decarboxylator is a device that activates cannabis to allow people to get accurate dosing. As many people know, the cannabis industry is brand new, but there are already a lot of products and processes available in the market.

Is Your Target Audience Large Enough?

So you have to make sure that the product you’re going to make or sell will have a large enough audience to generate enough sales. It doesn’t matter if your idea is amazing; if it’s only going to help a small segment of people, you won’t have much luck building an entire business around that one product. In my case, lots and lots of people are struggling to make cannabis medicine. Part of that is because cannabis is still illegal in many places and there isn’t a broad market where people can go and access a lot of products. So there were millions and millions of people who could potentially benefit from my product.

Can You Make the Product Affordable?

After you decide whether or not your product can help enough people, you have to figure out whether or not you’ll be able to make that product for a price that will allow you to make money. So if there’s a problem, but the solution is too expensive to implement, then you’ll run into a problem with your business. You won’t to be able to make money by selling it; you might actually even lose money by making a product and selling it if you’re not able to get the right price from your end consumer.

Does It Have Long-Term Value?

Consumers, even if they’re really excited about a product, are only going to pay so much for it. They have only a certain budget. While a given service might be valuable to them, it needs to add a significant amount of value in the long term if they’re going to invest. For example, our price was $250 when we initially launched.  You have to look at different things when you’re looking at pricing your product.

What Is the Competition in the Marketplace?

Your business will grow when you lower the price point as more people buy your product. You have to figure out where that sweet spot is for your product. You can figure that out in a lot of different ways; you can look at different products that are out in the market that might be similar to your product and you can see how people respond to paying that price and even try to beat that price.

Can You Create Different Pricing Structures?

You can also try to create different pricing structures for your product that allows perhaps a customer who’s very interested to buy whatever product or service you’re selling at a higher price. Or you can offer a premium product and maybe have a basic version of your product that would be accessible to a larger number of folks. Your goal is to continue to lower your price so that more and more people can access your product.

 

About Shanel Lindsay

Shanel A. Lindsay is an attorney, entrepreneur, and cannabis advocate. She is the founder and president of Ardent, LLC, a Boston-based biotech company created to provide safe, effective, and convenient products within the cannabis industry. As a drafter of Question 4, Massachusetts’ adult use cannabis law, founding member and co-chair of the Northeast Cannabis Coalition, Massachusetts Patients Advocacy Alliance Patient Advisory Board member, and well-known advocate for cannabis legalization on the east coast and beyond, Shanel is dedicated to improving public understanding of cannabis’ benefits.

Shanel graduated from the University of Pennsylvania and Northeastern University School of Law and began her career as a judicial law clerk for the Massachusetts Superior Court. She then joined the Boston law firm of Sugarman, Rogers, Barshak & Cohen, serving as a civil litigator for Fortune 500 companies before becoming Employment Counsel and Director of Human Resources for the Massachusetts State Lottery Commission. For over 15 years, Shanel has used cannabis medicinally as an alternative to pharmaceuticals. Alongside her professional pursuits, she gained first-hand expertise with various methods of extracting, preparing, and applying cannabis compounds. She leveraged her experience as a patient, business professional, lawyer, and advocate to develop Ardent, LLC. Through her company and continued advocacy, Shanel remains deeply committed to promoting cannabis education in Massachusetts and beyond and is excited to join the faculty of Northeastern Institute of Cannabis.

QUIZ: WHAT BUSINESS IS BEST FOR YOU?

QUIZ: WHAT BUSINESS IS BEST FOR YOU?