From Concept to Shelf: Strategies for Distributing New Products

Hello LinkedIn community,?

Welcome to a new week! We're well rested and ready to make the most of it once again. Our goal today is to share some positive vibes and give advice that may be useful to some of you.?

Today's topic is about recognizing the potential of your products, understanding their strengths and weaknesses, and knowing the perfect timing to introduce them to your distributors.

So why are we speaking about this? Well, because we understand firsthand how tricky it can be to identify those opportunities, pinpoint areas for improvement, and gauge the optimal moment to make your move. We've been in your shoes, navigating these challenges ourselves, and now we're here to lend a helping hand—especially if you're just starting out and could use some guidance from those who've trodden the path before.

Let's break it down step by step.

How do you work on improving your device and creating a winning product?

Our most successful project to date has been Bit, a DIY game console that has retro charm while also taking you to the worlds of electronics assembly and introductory coding. But Bit wasn't our first game console. We've had three before it, each having its own set of strengths and areas for improvement.

Our first project was a game console named MAKERbuino. It was beautiful, looked great, and was entertaining, but it was a little too complicated for the audience we were trying to reach, which were complete beginners. The issue was that too much soldering might be challenging, making it simpler to make a mistake and end up with a non-working device.

Next came Nibble. With this one, we went with a little different design - we tried a smaller device that your child could carry in their pocket or school bag to demonstrate to their tech class how they built a piece of electronics from scratch. Nibble is one of the most popular products ever, but our users pointed out some areas for improvement. By choosing a smaller device, we created a display that was a little too small. You'd still be able to see the game you're playing, although it might be a little annoying. Also, the batteries were not rechargeable, which obviously caused some hardship for our consumers. We did limit the number of components that needed to be soldered to make the game easier, but some of them remained a challenge for the beginners and children at the age of nine for whom this gadget was designed.

The next stage was to design something simpler, more aesthetically pleasing, larger, and with a rechargeable battery, and thus ByteBoi was born. Placing all of these game consoles next to one another shows how we listened to input and used it to improve our projects.?

Now that we've "perfected" our DIY game consoles, we've realized that we're missing out on a similar fun project for someone a little younger who isn't quite ready for a soldering iron, as well as for people and kids who don't want to learn soldering but still want to build their own game console, play with it, and learn a thing or two about programming.?

That's when we created Bit. Bit does not require soldering but provides an enjoyable experience playing with PCB and tiny components. You get to create it while also learning some interesting information about electronics, game consoles, and video games.

Bit's contribution to our product line is that it is larger than other consoles we have, with a slightly different but still recognizable design. The non-required soldering ensured that the product was ideal for younger kids (in this case 7+), who were previously not our target audience (with the exception of Batmobile).?

The box's design was updated to make it suitable for both retail and online sales (as discussed in our last newsletter). The box's design became more exciting and better demonstrated what you'd get within it, as well as what you can do and learn using Bit.?

What was our most successful project with distributors, and how did we know it would be successful?

As mentioned, our most successful project with distributors was Bit. However, while we were making it, we had no idea it would be that successful. We were simply creating something that our customers requested.?

Distributors, on the other hand, loved what we had done, and Bit quickly rose to the top of our product list.?

Aside from the functionalities we mentioned, Bit captured the hearts and minds of distributors thanks to its good ratio of purchase price, MSRP and quality packaging.

Now, let us speak about why the things described above are crucial to distributors and how we jumped to that problem. Distributors benefit greatly from a good purchase price for a variety of reasons. First and foremost, it will enable your distributors to increase their profit margins. When a product's purchase price is acceptable in relation to its perceived worth or MSRP, distributors can mark it up for resale while remaining competitive in the market. This allows distributors to make good profits without pricing themselves out of the market or offending potential clients.

This can also help distributors stand out from competition. In a crowded market, delivering items with an appealing price-performance ratio can help distributors stand out and gain a competitive advantage. This can be especially useful in businesses where price sensitivity is strong and clients are continually looking for the best deals.

A favorable Manufacturer's Suggested Retail Price (MSRP) benefits distributors in three significant ways. For starters, it establishes a clear standard for pricing consistency across many distribution channels. When a product has a well-defined MSRP that corresponds to its perceived market worth, distributors can set their resale pricing accordingly, assuring uniformity and transparency for consumers. This uniformity promotes trust and credibility among customers and across the distribution network.

Additionally, a positive MSRP might help with brand perception and positioning. When a product's MSRP is viewed as fair and reasonable, it raises the total perceived worth of the brand in the eyes of customers. Distributors can use this favorable association to entice customers who are willing to pay more for quality products from well-known brands. This can lead to higher sales and market share for both the product and the distributor.

With a clear reference point for the product's worth, distributors can effectively discuss and justify their pricing selections, resulting in more productive and mutually profitable partnerships.

Finally, consider the quality of the package. When a product is presented in well-designed, durable packaging, it makes a good first impression on customers, indicating that the product is of excellent quality and worth the money. This can result in improved sales and customer satisfaction because buyers are more likely to regard the product as high-end and desired.

Second, quality packing protects the goods throughout transportation and storage. Distributors can reduce the chance of damage or breakage by offering durable and secure packaging, resulting in fewer returns or replacements.

In addition, high-quality packaging can be an effective marketing strategy. Eye-catching and well-designed packaging can draw attention on store shelves or online platforms, allowing the product to stand out among competitors. Packaging that successfully communicates the product's qualities, benefits, and brand identity can also impact purchasing decisions, causing people to choose the product over alternatives.

Finally, when is the best moment to introduce your new product to distributors?

This was the question we considered in the early phases of our business. Do we offer it right away, or do we wait to ensure its success and then offer it once we have received feedback on the product?

The right answer for us here is - right away. Obviously, this varies based on the product you are developing and the market for which it is intended.?

We are constantly attempting to give the product to distributors as soon as possible so that they can get on board and enjoy the full benefits.?

However, if you are unsure about the best time for your product, here are some things to consider:?

1. Product readiness

Of course, don't offer it if your product is only an idea; that's only for investors looking to make a financial investment in your product. However, distributors cannot accomplish much with simply a concept. You can, of course, inform them about future items, especially if you are in the process of developing them and are confident that they will become a reality.?

However, we urge that you wait until your product is fully completed and ready to ship.

2. Market demand

Hopefully, you considered this minor step ahead. But, if you haven't already, now is the moment.?

Check to see if the distributor you're speaking with or considering approaching is interested in that type of product (for example, DIY electronics), or if there is someone who can assist you more effectively. Keep in mind that this collaboration must be mutually beneficial; the product must be appropriate for the distributor, and if it is, it will benefit you much.?

3. Production capacity

Don't sell or promise more than you can fulfill! That is our golden rule. Make sure you have enough production capacity to fulfill the expected demand from distributors. Consider production capacity, lead times, and supply chain readiness.

4. Distribution strategy

Make sure your team (or you) develops a clear distribution strategy outlining how you intend to contact your target distributors and efficiently penetrate the market. This is where you examine channel selection, pricing strategy, and logistics.

5. Shows & events

Albert mentioned this in one of his LinkedIn newsletters (which we invite you to subscribe to if you haven't already). We discovered that attending industry events allows us to exhibit what we've been working on, meet individuals in the industry, and network a little. During these events, we formed some of our best partnerships.?

Finally, the best moment to introduce your new product to distributors is when all of these criteria come together and you are convinced that your product will succeed in the market. Flexibility and adaptation are also required, as market circumstances and opportunities might shift over time.

We hope the information in this newsletter helped some of you answer any questions you may have. If you have any other questions that we have not addressed here, please leave them in the comments section. We'd be pleased to respond to them, or perhaps publish an entire email on it.