New product development takes a lot of work, but it can result in impressive ROI. It’s important to take your time and make sure the development process is handled properly to avoid costly errors. Here are a few mistakes to avoid during the new product development process to make sure your new product is as successful as possible.
Letting Costs Get Out of Hand
If your product development costs get out of hand, it’s going to be difficult to price your product at a price-point where consumers will purchase it and you’ll still turn a profit. Be sure and create a budget for product development at the start of the process and then check in periodically to make sure you are sticking to the budget.
It’s easier to address budget issues as you go, than to get to the end of the project and realize costs are much higher than expected. At the end of a project, it’s really too late to adjust those costs, and you risk losing money if customers don’t buy your product at the price you want to sell it for. Price is driven by cost, so be sure and keep track of all your costs.
Ignoring Changes in the Market
Getting customers to buy your product is easy if they see your product as having value. The product development process can take a long time. Nine months to two years is not an unreasonable time for product development. Sometimes market conditions change from the time you start work on your product to the time you finish. It’s important to monitor the market while you’re in the new product development stage so you can adjust your product if necessary. Sometimes your original design specs will need to be adjusted during the product development stage.
You’ll want to keep an eye on what other companies are doing too. Announcements from your competitors may change your plans and cause you to make adjustments to your new product before it’s out of the development stage.
Rushing the Process
Of course you’re eager to get your product out onto the market, but rushing the process isn’t going to help you. When you rush, things get missed and steps get skipped. It’s important that your new product goes through all the proper testing and meets all the required safety standards so it doesn’t fail when it hits the market. Sacrificing testing in order to meet a launch date isn’t worth facing potential safety recalls down the road. A focus on consumer safety can save your product from a disastrous launch.
When it comes to new product development, it doesn’t pay to let costs get out of control, ignore market changes, or rush the process. Pivot International provides various new product development services, including project management, to make sure your product is the best it can be when it hits the market. If you’re feeling a bit overwhelmed by the whole process, contact us today to learn how we can help you avoid mistakes during the new product development process.