Full Version: Market Research
From: Dan (DJ_DAN) [#3]
20 Jan 2007
To: Stunt Engraver (DGL) [#2] 20 Jan 2007
Hey,
Thanx for the link which I found interesting. It does have some good suggestions on there, but I find it to be more about an existing company and how to increase sales.
What I'm after though is somewhat different.
What I'm trying to get at here is how to "find out" about market potential - the interest of your local community, and the competition around you.
It's no good me establishing an engraving company... and then struggling to find any customers - simply because people aren't much interested in engraved products! That's a pretty big risk to take! Is there anyway of researching the market in your local area to find out wether or not people will buy your product? It's a real hard one I know.
When it comes to corporate clients, you can of course send out letters to the company's in your area announcing your interest, and try to get some feedback on wether or not they would welcome the oppurtunity to have engraved items... but with the general public, that ain't possible.
So finding out about the public's interest.... appears to be very difficult indeed - but I cannot surely be the first to consider that aspect (?).
The other problem I mention is about the competition. How do you find out what they are engraving? and what their price list is? The only way I can see... is to literally phone them up and ask them, but that is a bit 'iffy'. It'd be hard to get all the information you are after in one phone call (while trying to act like a genuine customer) - and you cannot call them more than once! - surely they'd recognise you and determine your intentions.
So really, from the experienced out there (of which this forum has many) how have you suceeded in these two areas?
If I'm not making myself clear, please ask and i'll try to explain better.
From: Engravin' Dave (DATAKES) [#4]
20 Jan 2007
To: Dan (DJ_DAN) [#3] 20 Jan 2007
The best way to gather this information is by using the methods listed below. You can attempt to do these studies yourself, or hire professionals. These studies are much cheaper than the potential investment that can be lost by jumping into business blindly.
Focus Groups
Feasibility Study
Secret Shoppers
This is the type of information that you have to spend time and money to gather. It is very geography-specific, so it's something that will have to be gathered from an accurate random sampling of customers in your market. Unfortunately, these people will have to be given an incentive to donate their time. That again means money.
EDITED: 20 Jan 2007 by DATAKES
From: Dan (DJ_DAN) [#5]
20 Jan 2007
To: Engravin' Dave (DATAKES) [#4] 20 Jan 2007
I appreciate your time in replying to my problems... but I'm a little lost in your answer. Would you please explain a little more about those three points:
Focus Groups
Feasibility Study
Secret Shoppers
I agree with what you're saying - it's worth investing a little into getting the right knowledge before wasting a business oppurtunity!
In my area, there is a jewellery shop (which claims to do engraving) and a signmaking company. I suppose I'd have to go down and order some items from them. (i guess that's what you mean by secret shopping?)
Cheers.
From: UncleSteve [#6]
20 Jan 2007
To: Dan (DJ_DAN) [#5] 20 Jan 2007
Don't call! You can't see anything over the phone. Walk in, look around and see what they offer and the quality of their samples.
Focus group: you pay "typical" people in the area to come to a closed meeting and discuss what they are looking for that they can't find and the price points they expect.
Feasability Study: You pay others to do the investigation and hope they come back with enough good information to make a decision on. They are looking for the same information you can see... but you have more knowledge of what you are looking at.
If they don't know who YOU are, you are your best secret shopper.
From: logojohn [#7]
20 Jan 2007
To: Dan (DJ_DAN) [#5] 20 Jan 2007
I did some searches just to compare websites and found some companies nearby that I had never heard of.
Many will have shopping carts or prices so you can compare.
I find the best search results are by listing your town or state name with a product name.
From: Dan (DJ_DAN) [#8]
20 Jan 2007
To: ALL
john: unfortunately, i live on a small island. Neither of those companies have websites (i've checked). The Net still isn't that important here for retail, because we are dealing with a more 'local' population.
steve: from what i can tell... neither of these two companies have a 'show area'. Most likely, you have to ask the salesman to retrieve the information! Which makes it more difficult. But I take into consideration those things.
From: Stunt Engraver (DGL) [#9]
20 Jan 2007
To: Dan (DJ_DAN) [#3] 21 Jan 2007
Dan,
In another thread, you mentioned wanting to specialize in "company seals."
The applications for engraving equipment (laser and rotary/drag) are so vast that opportunities exist all around you.
It's not a matter of, "Is there work out there my equipment?", rather which area(s) will you choose to pursue.
For laser equipment, here are some out-of-the-box ideas, from forum member Rodney Gold:
http://engravingetc.org/forum/index.php?webtag=EE&msg=1617.1
EDITED: 20 Jan 2007 by DGL
From: Engravin' Dave (DATAKES) [#10]
20 Jan 2007
To: Dan (DJ_DAN) [#5] 21 Jan 2007
Dan,
Here are some helpful links for you.
http://www.extension.iastate.edu/AgDM/wholefarm/pdf/c5-65.pdf
http://bestentrepreneur.murdoch.edu.au/Business_Feasibility_Study_Outline.pdf
http://www.montana.edu/wwwpb/pubs/mt9510.pdf
From: Dave Jones (DAVERJ) [#11]
21 Jan 2007
To: Dan (DJ_DAN) [#8] 21 Jan 2007
A quick web search turned up:
(Read the 3rd line from the bottom "We also provide a unique engraving service for gifts, trophies, medals and more")
http://www.castletownpets.com/
It seems a school there has a laser: "Nine students from St Ninian's High School formed Cutting Edge PG engraving plastic and glass using a laser cutter"
http://www.iomonline.co.im/ViewArticle2.aspx?SectionID=880&ArticleID=1947867
Trophies and engraving:
http://www.islandengraving.co.uk/
http://www.hersham.co.im/index.php?c=engraving
Jewelry Engraving:
(no web site) P.G. Allom & Co Ltd, 2 Market Hill, Ramsey, Isle Of Man
Industrial engraving:
From: Dan (DJ_DAN) [#12]
21 Jan 2007
To: Dave Jones (DAVERJ) [#11] 21 Jan 2007
Ah, you've really stunned me there!!! I've learned two things:
1. I'm poor at searching the net. I only found half those names... and still even. What words did you type in?
2. "Hersham" looks to be BIG competition.
Kind of disappointed really. I'm beginning to wonder if I would be able to compete at all. Really, I had no idea that company existed here - our local business guide doesn't even include them under the "engraver" section.
Got some things to consider now I guess... :-(
From: Engravin' Dave (DATAKES) [#13]
21 Jan 2007
To: Dan (DJ_DAN) [#12] 21 Jan 2007
Dan,
Hersham looks to me to be a company who is trying to be all things to all people. I would predict that they aren't too big in any of the markets, other than maybe the electrical engineering side. That appears to be where they got their initial start.
Don't make any final judgements until you do your market research. They may not be much of a player at all.
From: Stunt Engraver (DGL) [#14]
21 Jan 2007
To: Dan (DJ_DAN) [#12] 21 Jan 2007
Dan,
The ability to compete takes many forms, although many see price as the primary factor.
Exemplary customer service, quality in workmanship and a unique product or service can compell customers to look far beyond price.
From: Dan (DJ_DAN) [#15]
21 Jan 2007
To: Engravin' Dave (DATAKES) [#13] 21 Jan 2007
aye, having looked around their site a bit more... i think that may be the case. But on my initial reading of your post, i became very disheartened!! =P realising there was more competition than I thought.
It'll all take time anyhow. I'm in the early stages and trying to take in as much knowledge and advice as I can. I wouldn't be investing for a little while yet - so i've got time to get a good plan sorted out!
Thanks again for all your input.
From: Engravin' Dave (DATAKES) [#16]
21 Jan 2007
To: Dan (DJ_DAN) [#15] 21 Jan 2007
Dan,
Keep your head up. There is so much opportunity around every corner. It's recognizing it that is the tricky part.
I'm addressing new niche markets now that I didn't even know existed when I got into this business. Thanks to valued members of this forum, their ideas about these markets have contributed greatly to my bottom line. As you can already tell, we're here to help any way we can!
EDITED: 21 Jan 2007 by DATAKES
From: Dave Jones (DAVERJ) [#17]
21 Jan 2007
To: Dan (DJ_DAN) [#12] 21 Jan 2007
The search I did was quite simple:
isle man engraving
Of course most of the results were mentioning engraved prints or other antique engravings. But it's pretty easy to scan past those and only click on the other ones.
I also tried trophies, but 99% of the hits were about the Tourist Trophy race. Even excluding that term the remaining results were almost all about various organizations giving trophies. THAT showed me that there are a fair number of trophies and awards given out on your island, and somebody somewhere is supplying them.
The places in that first search that offer trophies and awards might simply be buying them engraved-to-order from another company off the island. The industrial engraver in that first search would be no competition to you. They are very specialized.
You might talk to people at your local school, government offices, football club, gokart club, etc... and see where they buy their trophies and awards. Somebody may be offering a limited selection at high prices. As Dave says, don't try to simply undercut prices, but knowing the competition's selections might allow you to offer a much broader choice. People who buy trophies and awards year after year often want variety.
Chances are that a lot of the jewelers on the island offer engraving, and may farm it out to one place on other jeweler on the island. Rather than pay another jeweler, those places might prefer to farm it out to you, since you aren't their competition.
Some other random thoughts:
- An art gallery or frame shop might want engraved plates to mount on the frames. So might local painters or sculptors.
- A boatmaker or repairer might need various brass items engraved
- small manufacturers might need nameplates for what they manufacture
- a hospitals, restaurants, and almost any company in the service industry might need personalized nametags.
- pet shops (other than the one listed in that first search), stables, kennels, etc... might need engraved tags for the animals.
Instead of thinking about individuals needing gifts and personal items engraved, think about small to large businesses that might need things engraved on an ongoing basis.
From: Stunt Engraver (DGL) [#18]
21 Jan 2007
To: Dave Jones (DAVERJ) [#17] 21 Jan 2007
As usual, very good advice.
Of that advice, I personally found this to be the most valuable:
Not only will some of those companies have engraving, or various marking needs of their own, some may cater to the individuals needing gifts or personalized items engraved.
In my opinion, it's best to let them deal with the retail end and become an ongoing supplier of goods and/or services to those companies.
EDITED: 21 Jan 2007 by DGL
From: Dave Jones (DAVERJ) [#19]
21 Jan 2007
To: Stunt Engraver (DGL) [#18] 21 Jan 2007
Also, a business that has an ongoing need can bring in a more predictable and consistent income that the random engraving of gift items.
Of course the business could suddenly stop needing their specific item too, so always best not to rely on only one or two those.
From: Dan (DJ_DAN) [#20]
21 Jan 2007
To: ALL
As usual, very good advice.
Of that advice, I personally found this to be the most valuable:
quote:
Instead of thinking about individuals needing gifts and personal items engraved, think about small to large businesses that might need things engraved on an ongoing basis.
Indeed I agree.
I liked your suggestions there.. and appreciate your help. I'm considering a lot of options at the moment, and one of those decisions is regarding 'what products to specialise in'.
Corporate business does seem like a good option:
Awards & recognition, nameplates, engraved pens, business card holders, signs etc.
Like you said, there is potential of a more 'constant' work flow from the corporate business too.