3. Do you know the perfect price for your product?
Let's say you've received a positive response about the prototype. It might be time to move ahead. But there's one more thing. ... You need to price the product right if you want it to sell. Price it too high and no one will buy it; price it too low and you can't sustain a business. Monosoff said reviewing similar products on the market—and you should know them all now anyway from the competitive landscape research you completed—is the best way to learn the price the consumer is willing to pay.
Then you just need to "do the math" on production costs and product differentiation.
Monosoff said that once you have come up with a good, research-based figure for the retail market value of your product, take that number and divide it by 5 to come up with the price you will likely need to pay for production.
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So if your product is $10, you can estimate two dollars or less for production costs. It's seemingly simple math, but many inventors think they can play with the numbers to enjoy a greater return. Monosoff cautioned against ever thinking that would lead to success.
"Consumers are price sensitive and will not pay more than they think the product is worth."
And if you are planning to price higher than your competition, the market research has to justify that the specific features and benefits of your product makes it stand out from the crowd, Monosoff said.
Tune in to CNBC's new series, "Make Me a Millionaire Inventor," on Wednesday nights at 10 p.m. ET/PT.