Late-to-Market Loss
Timeliness and efficiency
Successfully introducing a product to market involves having timeliness and efficiency on your side. It means launching the product in an armor of testing, product approvals, distribution, operations, and more. Despite the risks associated with developing and introducing new products, manufacturers welcome them because they result in turned profits, growth, and shareholder value. However, not everyone forecasts potential losses cumulatively. When timeframe is not evaluated to include all angles of product launch, including possible failures and product holdup at the testing stage, and a product fails to launch on time, it incurs opportunity costs that translate to increased development and labor expense.
Product testing is not a cost
With this vision in mind, product testing is not a cost, but an investment. When done right, compliance and product testing save time, push you closer to a launch date, and results in larger returns. Conversely, when a product is late-to-market, the demand for the product can decrease exponentially. Why is understanding your potential losses due to being late-to-market because of inefficient product testing so important? Easy: The revenue loss from compliance failure can be much greater than the initial costs of designing and manufacturing the product.
Be a pioneer and not a follower
When it comes to launching new products, your company should be a pioneer and not a follower. On one hand, the longer you wait, the steeper the chances will be that the largest spoils have already gone to other, riskier competitors. You must decide on what you want your approach to be: Do you want to get your product out sooner and potentially risk a lack of compliance to government regulations as they are written, or do you want to consider whether to tailor your strategy to a compliance approach? Are you ensuring that your product will pass all the required testing before reaching shelves?
Of course, with the looming possibility of profit loss coupled with the desire to be a “pioneer,” manufacturers might rush a product to market. After all, there is a max penalty for being late. You might lose market share, and customers can lose interest and head to competitors. But using the recent example of Samsung and its rushed Note 7 debut indicates the severe consequences of skimping on compliance testing.
Testing done right
At Testing Partners, not only do we get the testing done, we do it right. We recognize the need to get your product to market quickly and do not waste time in completing compliance and regulation testing efficiently. Pioneers acknowledge that a certain level of failure is a possibility with any venture, but the smart ones know that with the risks they are taking, they cannot afford to fail by making hasty moves that don’t consider consequences for cutting corners. To pass with flying colors, you must carefully examine every aspect of the product and get every nook inspected—it needs to launch early and it needs to launch right. We can help you get there.
Calculate your late-to-market loss with our Late-to-Market Calculator.
