The Hardware Startup

Chapter 10. Going to Market

So far, we’ve covered how to get from vision to physical product and how to raise the funding necessary to seed your company. Now it’s time to talk about building the business: business models, pricing, marketing channels, distribution, logistics, and more. Taking a product to market is a complex process. This chapter will focus on the most common issues you’ll enounter on the road to getting your product into the hands of customers. Some questions that we’ll touch on include:

What is your business model?

Many first-time hardware founders think their business model is obvious—they’re going to sell a device! However, a number of other options might be more suitable in terms of both revenue and customer loyalty.

How much will your product cost?

Regardless of the business model you choose, you’ll have to determine how much to ask your customers to pay for your device, or device experience.

Where will your product be sold?

Here we’ll discuss the costs and the pros and cons of various distribution options. This will also be where we discuss raising awareness, advertising, and marketing, because strategies often vary depending on the distribution channel.

How will you fulfill customer orders?

Will you rent a warehouse and hire employees to ship the product, or employ the services of a third-party provider? We will examine the costs associated with various fulfillment options.

The goal of this chapter is to help you reach the markets and customers ...