There are good and bad to Both Digital and Conventional based Products & Businesses so I hope through reading this you can understand which you would prefer to do Business in. Starting with Conventional Products (Physical Products); firstly the customer receives something physically for the purchase and could in this way value a physical product, a customer may see the exchange of money for material as a fair trade even if the product itself does nothing but sit in the corner of a room, a physical product could solve an active problem in your daily routine and maybe can not go by without it, we all use and purchase physical products and need them in our lives. They keep us Entertained, Informed, Managed, Alive and in Business, without physical products life would be different in a big way.
Physical Products are always getting improved on and therefore always satisfying a new need so as Manufacturers are starting to sell their new product another better version is already on their minds or somebody else’s. The competition for Manufacturers of physical products is very high and in the International Market it is very cut-throat so to say as Fastly developing countries find cheaper faster and more efficient ways in Manufacturing Physical products. Physical products unfortunately have a life span that is dependent on the quality and the type of product how often it is used. A physical product takes up room in your life very differently. These things have to be calculated before the purchase in turn to minimise the scatter of your unused items. Physical products have been notorious for putting us at risk; electronics, power tools, chemicals-toxins, vehicles, machinery but are all unfortunately necessary evils which we use to facilitate our lives in one way or another.
Physical products lose monetary value after purchase and can be hard to sell for the same amount you bought it for after opening the packaging. Physical products tend to get more affordable over time as the market is saturated with Manufacturers competing on the similar type of product for sale. Unfortunately for physical products there is always a cost to pay in manufacturing it. There is always a percentage of the amount it was sold for at cost to the manufacturer, A manufacturing of a product could consist of needing components and materials for the product to be made, machinery to prepare the material used for the product, employee’s to operate the machinery, a facility or factory with overheads including; insurance, maintenance, wages, materials, power and counsel rates, Legal start up costs such as Patenting for ex, security management systems, OH&S Liability. A product producing Business is a Slave to the economic times and social trends of people and Lifestyles and the advance of technology.
Digital Product Business; what are the trends?
A digital product business can be either very tech complicated to manage or very simple to do. Either way there is a lot of researching and testing to do. A digital based business has the benefit of being stored in a computer’s memory somewhere and does not require such expensive rates of rent for your business. Looking at it this way a business can pay as little as $25 a year rent if all you want is minimum costs and benefits but on average you can pay around $10/month for unlimited access plans. On the down side Computers sometimes go down and your business is instantly turned off, but this is also manageable by purchasing a reliable dedicated server that will keep your business on line 24/7. A digital Product needs a niche market, with your research done you should pick a target market with little competition for the information or software you are trying to sell.
The eBook businesses that are sure to advance in their venture are Businesses with outsourced jobs, it is not a good idea to do all the work yourself as your knowledge and time is limited with other things such as customer enquiries and support of team members, it is a good idea to make your business plan to include employee’s with experience in the areas of work you are not confident with, Article writing, Search engine optimization, Publishing and ebook, building the web site and getting it ready to accept orders on auto-pilot. The benefits of a digitally made product is that it will cost you only once to make, it is then stored on your computer you can then sell this product over and over millions of times and not have to pay an employee for the manufacture or dispatch of the product to your customer it is all done automatically.
The down side of digital products is that the refund requests are higher than with physical products, but like everything you can manage numbers if you dedicate research or continue to better your game. The burden of Digital based business is that you often need to be in the game to test things out first and then after managing your plan and strategies you will begin to see results. Results are not Instant they are gradual. Some can claim that they have a secret strategy that will work wonders but more often than not this is a strategy that has worked for a few and will not necessarily work for you. But I’m not saying don’t believe what you read on the web I am saying that with experiences under your belt you will eventually come across a winning formula to your success “with out action we get no where”.
Digital Vs Physical Product Business - Which Do You Prefer?