Sales are buzzing, your products are doing well, and you’re wondering, “Am I ready to aim higher?” It’s tricky, right? Because you do have to consider the risks — a new product may not do as well, the economy might take a turn, and competitors may beat you to the punch. At the same time, you don’t want to avoid all risks and stunt your company’s growth. Fortunately, there are several surefire signs it’s time to expand your product line.
1. Requests for New Products Are Pouring In
Look, if your customers are demanding it, you have to listen. There is seldom a better way to gauge your potential for growth than a loyal, eager customer base. Many companies have to do market research, polling, and gain insight from sales reports to see how their customers are behaving. Others have emails, comment sections, and reviews filled with verified purchasers clamoring for more innovations.
In fact, many customers will tell their favorite brands specifically what they want. Starbucks customers beg for a certain flavor in their coffee — like lavender in the spring. Trader Joe’s customers will message the corporate office to insist on new items like tahini or chili crunch oil. And under garment brands like Knix will hear about the need for period swimwear. Not only is the customer usually right, but they often have great ideas, too!
2. Demand Is Outpacing Supply
Another clear indication it’s time to expand your product line is that your demand is far outpacing your supply. In general, customer demand is steady. Orders come in, supply goes out, and you restock in time to meet future demand. This pattern continues, and your revenues come steadily in. When demand is low, you know your product might not be as successful as you hoped. When demand is high, it’s time to consider your options.
When demand is so high that you can’t even keep your products in stock, it’s time to expand. While you might see it as simply a sign that you need to keep more of the in-demand product in stock, it’s actually an indication of even more. Your buyers love your product so much that they’d clearly like to see something else. They’ve got money to spend, and they’re spending it on your products. Even offering the same products in a different color, shape, or size will help appease their appetites.
3. Sales Are Consistently High
A trend that closely follows high demand is high sales. When sales are booming, and your budget is balanced, you should be seeing high revenues and profits. Any good business mind knows that a portion of high revenues and profits should be reinvested in your business. Again, you could simply add more stock of your existing products, which are clearly in demand. Or, you could start innovating and expanding your line.
Consistently high sales typically means a consistently loyal fan base. You can only sell so many products to new people over time. Eventually, all the new people will have your products, and you have to rely on repeat customers. One way to keep your customers coming back, and to keep those sales high, is to offer new high-quality products they can buy and rave about. Then, the cycle continues, and you keep your customers happy.
4. Your Industry Is Growing
Whatever industry you’re in, you should have your finger on its pulse. You need to know how your competitors are performing, what your target audience is interested in, and what products are on topic right now. Check on the market share of businesses like yours. Are more people clearly gravitating toward products like yours? These are indicators that shifts are taking place in your industry as it grows, and you don’t want to be left behind.
You can keep up with your growing industry by innovating and introducing new products. Even just a single product that takes your mission a bit further and meets customer’s needs. It’s at this point in your business where you can really tap into what your loyal customers want and serve it on a platter. You can get your creative team together to see how to expand your line in a way that allows you to compete in your growing industry and meet customer demand.
5. You’ve Identified an Untapped Market
This last point is perhaps the most obvious after customer demand. Beyond your customers directly asking for a new product, if your creative team or even your data team recognizes an untapped market you can jump into, jump. This is truly a potential goldmine. The consequences of not taking this leap into a new product line all involve being left behind. If your competitors create in a space where you won’t, they may also take your existing customers.
Progress truly is the way forward in business, so keep your creative team tapped into emerging markets. And you don’t have to go all in. Offer a sample, a small stock of a new product, and see how your customers respond to it. You might even offer a sample for free or at a heavy discount and ask for reviews. The more interactive you get with your customers, the more they’ll respond, and the more you’ll be able to tap into those new markets with your new products.
In the end, you’re almost always better off expanding your product line than holding your creative team back. Not every idea will be a huge hit, but virtually every idea will lead to another, and then another. If your customers love your existing products, they’ll likely at least take an interest in anything new. Just do your due diligence, start small, and let your customers in on the innovations. You’re bound to meet your goals and keep your employees and customers happy.
