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When
deciding what to sell, we must understand
what the consumer needs and wants.
During
hard-times, a consumer cuts back on spending
and purchases necessity items like gasoline
to travel to and from work, clothing,
pays the mortgage payment, buys food,
generally takes care of all the fixed
expenses first before making any additional
expenditures.
 When
there is extra income, but not too much,
a consumer will spend some of the excess
on more functional items. A functional
item is something that the consumer can
use on a regular basis and has a definite
purpose...for example, furniture, bedding,
clothing, storage containers etc. A consumer
will tend to spend money on non-functional
items, when there is even more income
available. A non-functional item
is something that someone could live without
and is not a necessity item. An
example of a non-functional item might
be a cute little fuzzy teddy bear to prop
up on a shelf in the corner.
Beyond
considering whether to make a functional
or non-functional product, if you ask
a retailer what to sell, they will often
discuss the magic number. What is
the magic number you ask? Well,
its not WHAT you sell...but how much it
costs. The magic number in retailing
is $20 and under. Most consumers
are willing to spend $20 or less for creature
comforts whether they are functional or
non-functional.
Keep
the magic number and the products function
in mind, and you are well on your way
to having a successful product line to
sell.
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