Finally, you're going to need to re-evaluate your distribution channels at
this point.
So you may need to reduce dealer margins.
Why will they put up with that?
They may put up with it because this is the stage of
a product lifecycle where there is a lot of demand.
So they're pushing a lot of volume through.
They may be making their money on volume.
Given that, you may be able to get away with reducing the margins to them by
raising the price a little bit to them, in getting more of that margin for yourself.
And finally, you may want to consider opening up distribution channels.
Look at this yellow dress in front of you.
This is a dress that might have sold at a boutique dress shop.
But at this type of dress becomes more familiar, more common,
the market gets more saturated with this type of dress.
Whoever makes the dress might decide, we need to go not just to the boutique shop,
but we need to open up distribution channels and sell it in stores.
Where before, we might not consider selling it.
But the market is mature.
We just can't afford to stay here in this little niche.
Margins are getting tighter for us.
We need to push volume and push it out through distribution channels.
So what are the tactics here?
Think about unbundling those products and services if you have to.
I know you don't want to, but you might have to.
Go in to figuring out your price sensitivity estimates.
This is the point where you can do it and
the point where it probably makes the most sense.
Focus on controlling your costs, expand the product line, and
constantly re-evaluate your distribution channels, to make sure that
you're getting the profit you need to make your product successful.