Trap Ease
If a man [can]
make a better mousetrap than his neighbor
the world will make a beaten path to his door.
True, but only if the world perceives more value in it than the next door neighbor's.
Statement of the Problem
The problem Martha's currently encountering is the fact that despite the publicity and the proven uniqueness of Trap-Ease mousetrap, both demand and sales fall radically short of expectations. The purpose of this analysis is to identify the root of the problem and how it can possibly be solved.
Price
It was stated in the article that the Trap-Ease was approximately five to ten times more expensive than the standard traps already present in the market. This is largely due to the innovative concept of trapping mice in a mess-free method, and not as a consequence of more expensive raw materials. Trap-Ease utilizes plastic that is generally less costly than wood, thin steel metals and springs which compose the traditional mousetrap. No matter how much more expensive the cost of a new product is, it must not cost higher than the existing unless it possessed mechanics incredibly special, inevitably making customers feel that they are getting the value for their money. Since the innovative plastic mousetrap aims to reach the market with its new concept (something abstract), it will take much more than a low price for buyers to realize its value. Decreasing the introductory price, among other factors, will help increase sales by attracting new shoppers or diverting them from the traditional product. Once Trap-Ease has firmly established its name in the market by gradually increasing market share, prices may be increased eventually, but not as of the moment. This does not imply that prices must be lowered in a hasty manner. Management needs to price the products that would at least break even all the costs incurred for the first year or so.
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customers appeared to offer little initial price...
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