6/17/2023 0 Comments Printpress wordpress plugin![]() This is the main reason why it’s so hard to turn a great product idea into a profitable income stream. The physical product market is dominated by huge companies, and they’re very cautious about taking risks with new product lines. This situation has had a stifling effect on innovation. But what if the product fails to catch on? They rely on the discounts they get from bulk orders to turn a healthy profit. Retailers take a big risk on new product lines. Storing products is expensive, warehouses are there to make a profit, too! This makes it quite hard to bring a new product to the market – you have to convince investors to put up the seed capital to make your stuff in the hope of turning a profit. ![]() If you make too little, your customers will buy a competing product. If you can’t sell all your inventory, you take a loss. Producers often make too many products, or too few. It costs money to build and store physical products before they are sold and it’s hard to predict demand for a new product before it hits the marketplace. The economics of digital products is totally different from physical products. From the apps on your phone to the music and video you consume every month, digital products account for a decent slice of today’s spending.Įven conservative industries such as publishing and sheet music are moving towards digital distribution channels – according to Author Earnings, almost 50% of adult fiction book sales in 2015 were digital. They’re essentially buying electrons.Ī few decades back, the very idea would have been dismissed as pure sci-fi. Today, digital goods are a viable option – as long as it provides value, people will pay for data. ![]() In the past, products were physical goods – solid objects you could weigh and put in a box. The Internet has also redefined what we mean by “products”.
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