Reasons Your Products Aren't Selling and How to Overcome It

Entrepreneurs, These are Reasons why Your Products Fail

      Product is the main factor that must be considered when you are running a business. The achievement of product sales targets is the main goal in running a business. It's not an easy task.

There are many factors that make the product you are selling fail in the market. Internal and external factors can influence whether or not a business product behaves.

If these factors are not immediately identified and solutions sought, the development of your business will be threatened. The following are the factors causing the product to sell poorly and the solutions to overcome them.

What is a Product Failure?

Product failure means failing to meet the strategic objective & key result (OKR) metrics defined for the product. Those goals can be multidimensional and go beyond financial goals for revenue and profit, such as establishing a new competitive advantage or providing new upsell opportunities for other products. (280group.com)

Internal Factors that Cause Products to Fail

Inadequate Marketing Strategy Planning

Weak planning in determining the marketing strategy is something that can cause products not to sell well.

It is often missed by business owners. In fact, planning a marketing strategy is a key thing that must be done before you start a business.

The solution is when you plan a marketing strategy, make sure that the strategy is consumer-oriented. So that the goal of a business is achieved, namely the product can be sold.

The Price is Too Expensive

Price is one of the factors the product is not selling well. Mistakes in product pricing are often made by business owners, especially beginners.

In this era, smart consumers will definitely compare the products they are going to buy.

Sometimes products with almost the same quality but with a high price difference can turn consumers away.

Solution: You must conduct a price survey of your competitors who sell similar products.

Do a survey of several competitors in the area you will market your product.

Target Market that is too Wide

A target market that is too wide can cause your product not to sell. Because your focus is divided to all groups of people in marketing the product.

This often happens because some business owners want to obtain the maximum profit.

The solution is that you need to make a priority target market, so that the marketing strategy that you develop is more focused and on target.

Market Segmentation

Another common reason for product failure is trying to pursue the wrong market, or the wrong market segment.

Your market should be divided into segments using criteria such as region, consumer behavior, or vertical business areas. Once the market segments are defined, including personas for buyers and users, the business potential must be assessed. The areas to consider include:

- Market size

- Competitive survival

- The ability of your company to serve it

- Your product requests

Product managers can begin to assess the business potential of a market using secondary quantitative research sources such as Gartner Research's Industry reports. After that, if the market still looks attractive, follow up with primary qualitative research to find out the need, applicability of your product offering, and the willingness of customers to pay for your solution.

Bad Financial Planning

Finance is the most crucial thing in business, because the initial growth and movement of a business is in finance.

Financial planning is often sidelined, because business people only prepare funds without planning.

Thus, many companies went out of business because the existing funds ran out before the business grew.

Solution: plan your business finances neatly, in detail, and thoroughly.

Make a good plan and carry out what you have planned.

External Factors that Cause Products to Fail

Business Competition

Competition in the business world cannot be avoided, especially competition between similar products. If you can't look for the advantages of your product, then your product will fail in the market.

Solution: find and build your product advantages.

Poor Human Resources

Even if the product you sell is of good quality and more

superior compared to other similar products, but without the support of good human resources, it will be in vain.

Human resource support in a business, if presented, is probably around 70%.

Without a good production, packaging, distribution, and marketing team, your product will not be sold.

Solution: seek qualified human resources. Conduct training for each employee and evaluation every week.

In addition to the factors above, poor financial management can also have an impact on the failure of the product you are selling. Because the product you are selling will decrease in quality when financial management is chaotic. Funds for the purchase of product raw materials, operational funds, and others are not recorded and managed properly.