Pros and cons of improving or changing existing products
Oftentimes, a company will improve or change their existing products. There are many reasons for doing this. It can make a substantial difference in the success of your company and even take it in a whole new direction. However, it can also spell disaster if not done correctly.
How do you improve or change existing products?
Change or improvement can come about in many ways. Perhaps you sell a skincare line and would like to change the ingredients around a little. Or maybe you run a math tutoring business and would like to expand into other subjects, like science or reading.
While it may seem like only good can come from improving, adding to, or changing different products around, this is not always the case. It must be done skillfully, or else other problems can arise.
The following are some things to keep in mind when considering whether or not to improve or change your existing product line.
There are a number of pros to changing or improving your existing product line, including:
- Keep up with the competition. If you provide services or products in an industry that is constantly changing, it's important to stay aware of the latest in industry trends so you can continue to be competitive. Let's say for example you own a hair product supply store that sells flat irons for straightening hair. More and more places are selling ceramic irons as hair experts say they are better for hair. In this case, it would be advantageous to update the products to reflect the latest in technology.
- Increase sales. The main reason people will change and improve their existing product line is to increase their sales and ultimately, their revenue. By adding to the product line, you can take your company in a new direction by increasing sales. Let's take the example of the tutoring business. While you may have a good number of clients, they are all math students. Just as many students will need extra help in other disciplines. Expanding the existing service will only result in increased profits.
Just as there are benefits to changing or improving your product line, there are cons as well. Some of those include:
- Reduced sales of older items. If you change or improve your product, you may consequently be reducing the sales of your older items. This is especially true for products that are replacing older, outdated items (such as the flat irons mentioned earlier.) For this reason, it's important that your timing is right; if no one is ready for the technology, improving or changing your product won't help.
- Poor marketing. If you advertise that your product has changed, it must be done skillfully. People were buying your product before because they liked it; if you change it, it may not always be for the better. Make sure you do enough market research to know whether the change or improvement in the product would actually be beneficial.
Changing or improving your product line can result in increased success and profits for your company. However, if not done correctly, it can also be a costly mistake. In order for you have maximum results, it's important to first do careful market research and implement changes in small stages.