Risks and challenges
Pinn is a different product than any other Bluetooth product on the market currently. It gives the user more functionality, such as being able to check Caller ID or a text message, without having to grab your smartphone. We are confident of the design, functionality and market need for a product to reduce common frustrations of smartphones, but we are also mindful that the consumer electronics business sector is a tough market with heavy competition.
One of the common mistakes we have seen in our experience working with entrepreneurial companies is that a lot of companies drop the price of their product just to sell through and in the end, the company disappears. Sometimes consumers are not able to inquire about the product because the company no longer exists. We have structured our pricing to avoid this common mistake because we want to stay around for the long haul and continue to serve the best products and services.
To further minimize the risks of entering this competitive market space, we have:
• Developed and are continuing to further develop our patent portfolio to create barriers of entry for the competition
• Controlled the plan for distribution to closely manage the inventory and MAP price
• Nurtured long term relationships with component suppliers to ensure availability of supply
• Planned out multiple manufacturing facilities to be able to support increased demand
• Already planned for second and third generation products and are preparing patent applications for these products.
- (42 days)