Tips to Select the Best Electronic Hardware Product Idea
Every product begins with an idea. Choosing the best idea is crucial for product success on the market. In this article, we will discuss how to select the best idea for an electronic hardware product.
The key characteristic of a good product idea is simplicity and affordability. It is especially important for startups that have a limited budget for their realization. Your product has more chances to succeed if it is simple. For one thing, by developing a simple product you minimize cost and time to market. On the other hand, an excessive number of functions and features in a product is almost always a failing strategy and is even known as ‘feature creep’. So, keep it simple, focus on the core features of a product and add secondary functions after the marketability of your product is confirmed. For example, apply the concept of a Minimum Viable Product (MVP). In other words, launch a product with minimum functions, collect feedback from real customers and further add more features.
Affordability for mass manufacturing
Not only your product (especially startup) should be simple, it should be also affordable to scale to mass manufacturing. Indeed, the costs needed for the creation of a prototype substantially differ from the costs necessary for scaling a product to mass manufacturing. The major challenge in scaling is the cost of injection molds for the creation of custom plastic parts. Each custom plastic piece requires a separate injection mold. So, the more separate pieces you need, the larger amount of financial resources you will spend on your product mass manufacturing. For example, if your product requires ten custom plastic parts, then you will need ten separate molds. Considering the price for each mold that starts from $1500, it is better to select a product idea that encompasses fewer costs needed for mass production.
This is not an easy question. On the one hand, you should not be afraid of some competition on the market. On the contrary, existing competition means that your product is marketable. In other words, your customers know about the existence of their problem that can be solved by your product. You don’t need to convince them that this problem exists. Instead, you have to convince them that your product is the best solution to the problem. On the other hand, too much competition is challenging. If you launch a startup, don’t expect to win the competition with such giants as Amazon or Apple. At least, do not develop a product that directly competes with the products of such dominating companies. First, they can afford much lower prices for their products due to their massive economies of scale. Second, they have strong positions in the context of branding and marketing.
Here are some aspects to consider when selecting the best electronic hardware idea. Naturally, this list is not exhaustive. You should also pay attention to the potential for a high profit margin of your product, a good price range, product differentiation, and features of the market. To learn more about better electronic hardware product ideas and their realization, visit Axonim.