“You have to recognize when the right place and the right time fuse and
take advantage of that opportunity. There are plenty of opportunities
out there. You can’t sit back and wait.”
-Ellen Metcalf
I say this quite a bit, but I feel one of the most exciting things
about our industry is the fact that new product innovations, value
added applications and new sales opportunities are consistently being
developed and brought to market. In a business that’s as hyper
competitive as ours,
ISOs and sales agents are constantly, and rightfully so, on the look
out for fresh ways to add value, increase revenue streams, reduce
attrition and deepen customer loyalty.
So with all these opportunities presenting themselves, how do you know
what the right opportunity is for you? Let’s review several key points
that should be taken under consideration before offering a new product
or service.
Profit Potential
One of the most important factors when considering any new product or
service is the potential to impact bottom line revenue. The product
itself may not create a large increase in revenue but may open doors to
new revenue possibilities. A product that opens doors and creates
significant ongoing revenue is a winner every time. So ask some common
sense questions, what is the potential revenue this new product will
create? Instead of just a one-time commission will an additional
revenue stream be created? Will this opportunity help penetrate new
niche markets so you can sell additional products and services? Does
this product create a noticeable competitive advantage?
Market Size
Another key factor is the size of the market you are attempting to
access. The most critical component of any new product is conducting
the proper research to make sure this is a good fit for your sales
office. Does this new opportunity address a market trend or leverage a
technological advantage that can be marketed to a large prospect base?
Do your homework and ask yourself some basic questions:
- Who - will buy this product? Can I sell this product to my existing
customer base?
- Where – can I locate this type of customer? Are there enough
prospects?
- What – does my prospect want from this product?
- Why – should they buy from me?
- How – do I penetrate this market?
- When – do I begin launching this product?
It’s key to think through the whole process in order to make sure all
the bases are covered. Make sure there is a market and a proven need.
If you’re fortunate enough to find an innovative fresh product that
solves a major business challenge, you’re in the money.
Competitive Environment
It is always important to know what the competitive climate is around
any new opportunity. If you’re focusing on just selling terminals (or
giving them away) and not specializing in any niche at this time, I
can’t possibly think of any new opportunity that will be as competitive
as what you’re doing right now!
Once again, do your homework, who are the major competitors? How many
vendors are offering this particular product? Does the new opportunity
offer something that all these competitors do not have? What are their
pricing strategies? How wide open is your local market? What is unique
about their offering? Why do you think you can beat them?
Make sure you go into any new product or service opportunity with a
clear idea of what your local, regional and national competitors are
doing and how you’re going to meet competitive challenges.
Ongoing Service Commitment
Ongoing service is always a consideration for small to mid sized sales
offices. Determine whether this new product is going to require a large
ongoing service commitment. Ideal products will require little or no
ongoing service by the sales office or staff. If you’re adding a
product that requires heavy service make sure the upfront and ongoing
revenue streams justify the additional work.
Product Implementation
Another key factor is implementation. If this is a new product line how
hard is it to install or setup? Will it require additional in-house
staff to support the implementation? Many products– such as gift
cards–require artwork, customer approval, printing, delivery and
installation.
Are the benefits of selling this product worth the implementation work
upfront?
Another key consideration is how much of the workload the vendor or
manufacturer is willing to assume to help implement, support and train
your office in this new product venture.
So what are my top opportunity picks for this year?
- Contactless Cards (www.paypass.com)
- Wireless Credit and Check Processing (www.commerciant.com)
- IP Enabled Terminals and Wifi (Verifone, Lipman, Hypercom)
New opportunities invigorate your sales staff, open new markets and
provide cutting edge solutions to customers’ most demanding business
challenges. By having a varied product mix you’re presenting yourself
as a solutions provider, not just another bankcard salesperson.
Opportunities are everywhere, are you going to sit on the sidelines or
seize the day!
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