Niche Products That Sell

Niche is a term that has been used by the majority of the businesses in recent years. Let us discuss its actual meaning.

Niche Products That Sell

  • is not a product of mainstream.
  • a product that is not easily available in the regular shops of the society.
  • a product that incorporates an important application and interest to a particular segment of the society which creates a desire for purchase for that particular segment only.
  • a product that is assured of dependability and forecasted selling power due to its specialist attraction to that segment.

It may appear odd to many people but its reality that when discusses and make strategies to find niche products, they are actually promoting a strategy of “playing safe” or “follow the crowd strategy.  For instance, your business decides to aim a promising established product category, but for selling purpose, you choose a specific narrow band of products. In addition, you procure its raw material from the same supplier as your rivals, but you make innovative changes while marketing this product to your niche that earns you success.

Your Competitors

The other method of identifying “niche products” is by getting ahead of your competitors by discovering a specific demand that is unique and special in the society and is under-supplied. As soon as the special demand is identified, you can start searching out the supplies that can cater to this demand. The supplies can be searched in ways not followed by the majority.

  • Identifying foreign markets or much localized markets that are ignorant of the regular products.
  • In-depth internet search to unearth suppliers who possesses promising products but ineffective marketing tools.
  • Exploring new products at various trade shows.
  • Making close relations with the manufactures to come up with innovative designs, feCustomer group nicheatures and functions for the niche products.

Customer group niche

When it is also observed that the product you are selling may not be a “niche”, but the market spot to which you are promoting. In other words, you can shift from “niche product” strategy to “customer group niche”. A strategy that enables you to earn revenue from non-niche products.  For instance, markets that are renowned as enthusiasts markets will contain ultra-specialists products. There is also a high probability to sell generic products to the same segment at a much higher price. To be more specific, people who love fishing will normally buy fishing rods and lines, but they will also be paying attention to non-specialist items that may consist of drinks, flasks, bags, camping chairs, outdoor clothes etc.

Try to save the customer’s time by placing the related products besides the specialist items which have a higher chance of consumers willing to pay higher prices. It will be convenient for them as it provides the element of “one stop shopping” as found in large supermarkets. Hence, people with the enthusiast mindset, can be easily targeted with the non-specialist items at a slightly higher price and can earn you substantial profits.

Analysing the Competition

Analyse Your Competition

The number of direct competitors  is a deciding factor between the success and failure of any niche market.  A niche market can be very small, if it contains only one or two products that can be offered into a small market, with high competition, then your profits may be low, unless the item you are selling is of a high value and high ticket price. However, if the market is strong and you can create more than two niche products; it is very likely that your niche market may not become saturated with competitors.

You really need to do the research into the size of the niche market, it is advisable to determine your risk level in order to help you in confronting the competition all ready out there.  When I started my niche student lettings business there was not much competition at all.  It is believed by many experts that if you are passionate about the market niche you are a part of, then the task of dealing with the competitors will be easy and you will be enjoying your journey and don’t even consider the competition.  That was the way I looked at my business to be honest. If on the other hand you are not enjoying the process of selling in the market you are in, it is better to switch your business to some other niche market.

There is never a right or wrong time to get started.

The 20th century has witnessed some incredible niche builders, they made their way through tough economic and social changes. For instance, in 1920s, the Walt Disney Company laid the foundations of its huge empire on the unknown art of child-like sketches which later came to be known as cartoons. The business was started during a very harsh economic environment that included the Great Depression, the Wall Street Crash and World War 2.  It was beyond the expectations of the experts that the business of cartoons, being considered as silly, would prosper and grow through some of the toughest crises in the world’s history.  Don’t delay starting your niche business because you consider the economy is stale.

Basic Questions

So you see, it is advisable to spend a great deal of time in studying, researching and analysing the competition.  You should consider both bricks and mortar and online business in your research. Start by asking the most basics questions that are outlined below.

  • Ask what –
  • types of products are they selling
  • range of prices have they adopted for their niche products?
  • are their major and minor strengths and weaknesses?
  • In which ways can your business compete with the rivals?

In the case of your business, you can ask yourself the following questions.

  • Is the product or service you are selling a good fit for the niche market right now?
  • Have you refined the market down to a potential niche that you can cater to and something that is relevant to 2016/7 and into the next three to five years?
  • Who exactly are you selling to?

You should certainly be thinking about the type of people in your niche market, and create your ideal potential client or customer, then go out and market to them directly.

TOP TIP – Find the competition and also your customers

The best way to discover who you can market to is to use the Facebook graph search function. Facebook rolled out a search function in 2014, which allows you to search for people, places and things.  Try typing your niche into the search bar and see what Facebook suggests for you. If you are targeting people who like to Scuba Dive just type – scuba – into the search bar and you can find pages and groups with perhaps people you already know that are in that target group.

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Sometimes finding your ideal target market is an easy task, my customers and clients came in two forms, one group was young college or school leavers who were entering Sunderland University, the other was property owners who were looking for the students to stay in their Sunderland student rental properties.   A good rule of thumb states that rather than competing with your rivals on the same strategy, think out and implement a different and fresh angle that the competitors are either lacking or you believe you can capitalise on ten times better.   In this way, you have a better chance to rise higher than your competitors.  For me I was one of the first student letting agents in Sunderland to have an online presence.

Personal Branding

Last but not the least, try to use personal branding. In today’s world, winning customers and overcoming the competition is straightforward.  The direct and indirect, local and foreign, online and offline competitors still focus on old advertising mediums. You should focus on making more close and personal relationship with your targeted or niche customers. In other words, you have to “own” your product or service and make it stand out from the crowd. Compared to the past this will be an easier task because of the growth in social media. It is now 100x easier to engage with and reach out to people who are not directly known to you.

The combination of the above-mentioned strategies will lead you to business  success in the long term.  We should all drink to that, Cheers.

Profit Potential for Your Niche

There are many businesses in the economy that find very promising profit potential for your niche markets products and services that will tackle existing problems.  For example starting out in 2005 in the “Property Management and Lettings” in a small niche market of “Student Rentals” offering shared housing and flats for University Students and helping long distance landlords with their property investments.

Profit Potential for Your Niche

Many business entrepreneurs have been restricted in their endeavours by thinking about failure before they invest huge amounts of time, energy and money into the niche segment. Usually this thinking results in the outcome of failure!  This is a very important consideration for the business owner, it demands a process which is skipped the majority of the time.  It is the process of validating your niche market in its entirety. This is a crucial step in the identification of the profit potential for your niche market.  Although there is no hard and fast rule that can guarantee you success, nevertheless, there are certain steps that can be followed in order to give your business a promising chance. As well as being positive and focused on success. These steps are briefly mentioned below.

Is there a demand for your product or service?

This involves the calculation of the total number of potential customers that will be purchasing your product.  Have the customers in the segment overcome their problems or are they still suffering with them?   This information will provide an idea of the amount of people interested in the niche product solution or service that you have to offer.

A lot of surveys have been conducted on various products and people’s taste and preferences.  You can take the advice from these surveys in order to analyse your niche’s profit potential.  Again, the internet has become one of the most economical commodities in the modern world.  The web contains vasts amounts of information on variety of issues and subjects out of which the majority of them can be accessed freely.  When typing your niche product keyword in the search box of any popular search engines you can get a fair amount of information and gain an idea of how much profit can be earned for your niche product.

If the niche product is an online product and you will be promoting this on your blog or website, you can check out whether it involves the advertiser’s base keywords in PPC (Pay per Click) with in advertising networks.  It is known that Yahoo Advertising  and Google AdSense are the two most popular PPC programs on the internet. You can make use of the above programs to track down the amount of traffic and the average CPC (cost per click) for your most  important keywords within AdWords and AdSense.

Is there any competitor that is already targeting your niche segment?

It is very important in business to know in advance what products  are being sold by your rivals.  If you come across competitors that are already selling your niche product or service,  it is advisable to analyse their business and products more deeply rather than switching your niche product. This strategy involves the SWOT analysis of their product in order to identify the elements that you can improve, enhance or modify. This move will put you ahead of your rivals and would give the customers a good reason to switch to your improved niche product.

Does you niche product have a high lifetime value?

The term “lifetime value” implies the sum of the value of each consumer buying your product as they will want to buy from you on a regular basis. The questions that you need to ask yourself are the following:

  • Is it easy for you to transform one-time buyer into regular buyer?
  • Any related products beside your main niche product for your customers, can build long-lasting and valuable relationship with them?

It is important to understand, that when you are selling just one product,  it is not at all inappropriate to come up with other related niche products, as it is much easy to sell to an existing customer or client than to find a new one.

In my case it was easy to keep the landlord property investors as long term clients with year on year contracts while promoting the rentals to the University students each year and when the students had enjoyed the first year in a property they would often book for a 2nd year to the end of their studies.

Disclosure: Some of the links in this post are 'affiliate links.' This means if you click on the link and purchase the item, I will receive an affiliate commission.

Identifying Your Passion

“Our passions are the winds that propel our vessel. Our reason is the pilot that steers her. Without winds the vessel would not move and without a pilot she would be lost.”—Anonymous

Passion plays a vital role in the activities we are engaged in our daily lives. The identification and development of a niche market is heavily related with your passion.  It has been said by many people and experts, that instead of finding a niche market with a sole reason to make money, instead identify the niche that you are most passionate about. This will automatically increase your chances of success in the long run. There is a very strong logic behind this statement. When you are passionate for something in your life, it is obvious that you will give the maximum time, energy and cost to that particular thing. The other daily activities would take the back stage in your life. Your entire focus and dedication would be on achieving the objective you are very passionate about.

The same is the case for the niche market, your passion would enable you to devote your maximum time, energy and cost in identifying and analysing the important variables that will lead you to success in that niche market.  Similarly, if you are searching a particular niche on the internet, your passion would force you to pull together the research for a significant website,  then be able to generate substantial traffic of users and make considerable revenue for your business from customers. When your passionate objective is being accomplished, it gives you heaps of joy and happiness.  While on the contrary, if you do not show interest in the topic you are studying, there is a less chance that you will arrive at the desired goal of a successful outcome.  In the case of an online niche, you will be unwilling and unenthusiastic to continue the work on your website and will devote less than the required time in monitoring and maintaining the website or blog.  If you have genuine and considerable passion, then the outcome will match your true expectations.

The most important thing that you should take into consideration during the process of researching the niche market is your preference expertise and comfort in the subject.  It is certain that a person who is proficient in “creating websites” for instance will be fully aware of the ins and outs of that particular niche market or any other topic he is engaged in.  It is the level of interest and commitment that increases the amount of creativity shown in the work.  Once the interest is there, the task becomes simple and spontaneous to you.  On top of this, it avoids the biggest barrier that most people find and that is the creation of original and innovative ideas and thoughts. When you are passionate about the niche subject, the task of regular input and updates from your side will prove to be easier. This is of course only possible if your interest and passion continues with consistency in doing the work.  You will be in a stronger position to be creative and more effective in your tasks.

So in conclusion, the most important thing here is the level of passion behind any work you do in your life.

Targeting with Niche Products

It is quite obvious that when a company has a product or service to offer, it is very unlikely that every consumer in the society would purchase that product or service. In the domain of niche market, your entire marketing efforts are focused on a specific segment in the society. This is the segment that reflects promising demand for your product. Hence, before targeting that particular segment of the society, it is always better to implement niche research which will assist you in exploring the different characteristics of your segment. With this knowledge at hand, you will find your product in strong selling position.

There are various things that need to be considered while analyzing the niche market. First and foremost is the identification of the important demographic variables that may include gender, age, income level, ethnic groups of the market. The next step is to focus on the 3 Ws which are outlined below:

  • Who you are marketing your product?
  • Where are they located?
  • Why are they considered “very likely” in purchasing your product?

As far as the advertising is concerned, the accumulated information on the market can give you the right direction and assistance in carving out the strategies for your niche products. If the products are offered online, it demands thorough research on the keywords that will be used for the niche goods. It may include words as well as the phrases that will play a vital role in promoting your niche products. Targeting will niche products would be beneficial in two ways. First, it will increase the revenue for the firm. Secondly, it can give you the option of being selective in the advertising program you want to pursue. This becomes easy and achievable when you are aware of your target segment. In addition, you can also make use of the affiliate marketing. With the support of the affiliates, it becomes easy to pull more users to the website. At the same time, the content on the website has to original and interesting for the users. Apart from this, you can also implement the interactive approach whereby you use social networking sites such as LinkedIn, Facebook and Orkut. These websites enables you to create associations which have the potential to convert into future customers. Another important platform for the niche products is the various discussion forums on the internet which can provide you valuable information on the potential niches and the targeting strategies.

Once the niche market has been identified or the niche products have been developed, it is imperative to attract them with the medium of advertising. In this way, they will become aware that you have the product that they are looking for. On top of this, once there is healthy and strong interaction with the target market, they will know more about you and your niche product. This will increase your customer base due to the exposure of your niche products in the market place and in the minds of the targeted niche.

Niche Product Ideas

“Your wealth is in the wealth of your knowledge. Transform your uncommon wisdom into uncommon wealth because nobody has your unique experience. Turn your thinking process into your word processor. Then take your packaged information to the marketplace where your good ideas make the cash register ring.” -Uzo Onukwugha

Good advice – but not always followed.

The task of launching niche product ideas can often be difficult.  However, there are some fresh  ideas that can provide you a stepping stone to move forward. Hence, you should start by taking into consideration the obvious, which is that every individual is confronted with problems. It is with these problems in mind that you can get started on your first product.  People are always caught up in one problem or the other in their lives. The best way to think about this is to be helping and solving their problems, and delivering something of value to those people.

Solve Problems First

The most important thing that you need to do is come up with the unique product ideas that can provide relief to their problems.

  • Health Problems
  • Money Problems
  • Relationship Problems

If this task seems too demanding, then the next idea that you can think about is the latest trends that have taken centre stage in the market place.  Try and update yourself with the latest trends, you can use assistance from the internet, television, magazines and newspapers. Once you become aware of the newest and hottest developments in the market place, you are in a better position to invent a product that is associated with the existing trend.

Look at existing trends

  • Fashion Trends
  • Digital Trends
  • Nutrition Trends

Another great idea from which you can create a niche product or products is exploring the old products.   All you have to do is catch any old product, analyse its features and benefits and to which segment it is targeted at, then identify any weaknesses.  The next step would be to come up with the ways though which the old product can be improved, modified or enhanced.  Finally, give it a new brand name along with the novel features and promote it in the market.

Segmented Niche Product

There can be another idea whereby you create a niche for your product that is entirely different from the previous targeted market. The development of this niche requires experience and a great knowledge of the different brands in the market. When you have a separate niche for your product, it will automatically make it easy for you to differentiate your product from the regular products and would be highly valued in this new segment.  Take for example Money Problems a product on helping and providing useful and valuable information would be different if you were to segment your target audience.

  • University Students
  • Stay at home mums
  • Retired people, over 60’s

Yet another idea that can be capitalised on is by adding related products to an existing product.  For example, if your product is in the dieting niche, you can add related items like, keep fit routines and body and mind programs to keep people on course.  With creative styling and branding, you could be on to a winner, exploding sales of your product.

Apart from the ideas mentioned above, there are many others that can be researched. You can then make improvements to older products by making changes in its design.  You can reach out to consumers with surveys and questions in order to know their likes and dislikes. Then look at new features they would like to see in a product. This exercise will help boost your ideas about more niche products.

Disclosure: Some of the links in this post are 'affiliate links.' This means if you click on the link and purchase the item, I will receive an affiliate commission.
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