Six Major Objections When Launching a New Product and How to Handle Them
Bringing a new product to market challenges, especially for startups. Understanding and addressing common objections can help smooth the way to success
Here are six major objections you might encounter when launching a new product, and how real-world examples show you can handle them.
Problem 1: Lack of Trust by Customer
Objection: “How do I know your product is reliable?”
Proposal 1:
Proven Example: Tesla’s Early Days
When Tesla’s electric cars were first put into the market, potential buyers raised concerns about the trustworthiness and performance of electric vehicles. So, to build confidence, Tesla provided ample opportunities to test drive its cars; endorsements by well-known industry experts and the skills of its engineering staff were displayed in particular. In addition, they consolidated credibility through proving that their testing method was rigorous and their safety standards high.
Implementation Step: For your startup, work at collecting beta user testimonials; obtain approval from industry experts and make much of your team’s expertise plus the rigorous testing your product has been subjected to.
Problem 2: High Price = No Sale
Objection: “Why is your product so expensive compared with existing options?”
Proposal 2:
Handling Strategy
Proven Example: Apple’s iPhone Launch
When Apple first put out the iPhone, it was much more costly than the other smart phones in the market. Apple justified the higher price by stressing unique features of its phone – an user-friendly interface, integration with iTunes and revolutionary touch screen technology. A payment plan was also offered.
Implementation Step: Clearly state the unique value of your product. In detail, show how quality, characteristics and benefits all justify higher price. For the first purchase, consider offering introductory discounts or payment terms to make the deal more attractive.
Problem 3: New Product Frights Them
Objection: “What if your product doesn’t work as well as you promised?”
Handling Strategy:
Proven Example : Dropbox’s Beta Testing
Dropbox initially offered their service to a small group of beta testers, a measure seemingly calculated that could offset concerns about product failure. Then they refined the service according to feedback sent back from these beta testers and put up testimonials from users on their site who seemed really happy about what they had been doing. This method won over new confidence in their product’s reliability and performance.
- Resistance to Change
Objection: “Why should I change from the way I’m doing things now?”
Handling Strategy:
Proven Example: Slack’s Inroads into Workplaces
When Slack came on the scene, many companies hesitated to give up their existing communication tools. Slack surmounted this reluctance by emphasizing that it could be integrated with a variety of other software, its user interface design and convenience as well productivity advantages offered. There also was a freemium model; that is, teams could try out the product before they adopted it.
Implementation: Make it a rule to underline the benefits of your product in comparison with existing solutions, as when faster delivery, lower bills for electricity and other utilities, higher quality production with less maintenance– what have you? Offer a free trial period that leaves potential buyers free to put your product’s performance to the test in situ.
- Limited Brand Awareness
Objection: “Why should I trust the mark of a company I have never even heard about?”
Handling Strategy:
Proven Example: Warby Parker’s Branding Strategy
Eyewear startup Warby Parker leveraged social media marketing, produced engaging content and partnered with influencers to alleviate their brand anonymity. They also gave customers a home trial period of up to five glasses, not only at no risk but encouraged by them to become familiar with the brand.
Implementation: Invest in brands such as social media campaigns and content marketing to produce initiatives for building brand recognition. In addition, you can highlight any industry this year awards your product has been given or other accolade.
The end.
- Concerns About Supply Chain Stability
Objection: “Can you consistently supply your product?”
Handling Strategy:
Proven Example: Zara’s Agile Supply Chain
Leading fashion retailer Zara solves the problem of supply chain stability by tightly controlling its production and distribution operations. They use a network of trustworthy suppliers and have plans already laid out to ensure products remain consistent over time.
Carrier: Inform potential buyers of your way of doing things in the supply chain and your reserves after they’ve said “yes”. Formations with reliable suppliers, used by Zara to demonstrate stability and continuity.
Conclusion
When launching a new product there is a question in every potential customer’s mind. By understanding these common concerns and using strategies that have been shown to work in the past, your startup could gain trust among customers, make people see the unique value of its product and eventually find a market niche. Refer to successful companies and implement a similar strategy to overcome these difficulties and attain market dominance for your product.
