How to Create a Product or Service That You Can Sell

“When it comes to the profitability of the products or services, you need to ask yourself: 

1) How much will it cost me to create or deliver the product or service? 

2) How long will it take? Because ultimately the time it takes will also play a role in the profitability. 

3) What other expenses will be involved when it comes to delivering my product or service? 

4) What is your profit goal?

For example, let’s say I charge R1000 for my product or service and I want to make 50% profit. This means I want to make a profit of R500. Let’s say my costs are R200, which is 20% of the total asking price, and I’m willing to spend 20% on marketing and advertising, that’s another 20%. So now I sit with 40%, i.e., R400. That is the amount it’s going to cost me to deliver the product or service. If I’m going to give my salespeople 10% commission on making a sale, I will hit my target of 50% cost and 50% profitability.

That’s profitability in a nutshell. It can obviously get a bit more complicated than that, but just stick to these principles and you will get to the profitability.“

“What is very important is, once you have created the product or service, you must systemize the process to duplicate the product or service more than once.

Take McDonald’s as an example. McDonald’s created a system to make a Big Mac more than 69 million times per month.

The last thing that comes in is your distribution. How will I take the product or service and distribute it? Through that, we can see McDonald’s is now distributing their 69 million Big Macs through their 37 thousand franchises in the world.

After you create the product or service, you want to look at your duplication. How do I systemize that? Then you need to look at your distribution channels.“