Posted by 2014-05-04 08:06:56
Title: How do you know if your product is good for a shopping channel and when would you approach them? ...
For a product to be successful on a shopping channel, it must have a novelty characteristic about it. It must pass through a number of decision-makers and then finally go through a battery of tests, which include quality. You can go onto a couple of shopping channels and take a look at both the products being offered, their associated price points and the description of the products by the host/guests. Higher priced items, or those that appeal to a very niche market will not even make it to the decision-makers. These channels also have certain types of items sold at certain times of the year. You will have to see if your product fits within that category.
The other aspect that almost kills these opportunities is the inventory required. You have to have a minimum number of products available that are ready to be shipped. If your product is a hit on the show, then you need to be able to fill all of the orders. The minimum inventory levels are very high, which means you will have to pre-order those items, a significant outlay of capital.
There are other cautionary notes. You will be selling to the shopping channel at wholesale prices, not retail. You also will be saddled with the inventory that does not sell as well as any returns within a certain time period. All these issues affect both expected revenue and inventory levels that you will need to get rid of.
If inventory levels are an issue or even cash outlay, try growing greenfield initially to see if there really is a market for your product. You need to be certain that people will buy your product. If not, you are wasting time, money and resources.
Good luck with the product.