Section 13 Trend of demand

February 7th, 2013 Leave a comment Go to comments
WINNERS = Products which have an upward trend of demand

Trend of demand refers to changes within markets which effect the total sales of the product.  The trend of demand will either be climbing, level, or descending.  Even if the product you are reviewing has no direct competition, it will probably still fall into a similar category or type of product line which is presently being sold.  The evaluator is then able to use the similar product line as a rough gauge by which to measure the trend of demand.  Be objective !

If your product will depend on one or more other products, be sure to check out the trend of demand for the products on which your product will depend.  For example, if you are selling a new type of camper shell for small pickup trucks which has a built in roof rack to carry small boats, but the overall sales of small trucks and or small boats is decreasing, look out.  You should keep your investment limited or “pass” on the whole deal.  Even though your product is new, and you will be able to sell quite a few to owners of existing small trucks, you must be aware that unless the demand for small trucks goes up, you can expect to be selling in a declining market.  You can still make money in this type of situation, but only if the payback period will be VERY short.

On the other hand, if your product is linked to a product for which there is a rapidly growing market, your potential for profit increases dramatically.  However, keep in mind the fact that in order to capitalize on a rapidly expanding market, you must be able to capitalize the venture sufficiently to supply the growing demand.

If you are an individual, or have a small company with low overhead, and a product which requires only a minimal investment to get to market, you may be able to justify producing a product which caters to a market segment which is level or descending and still make enough profit to make the venture worthwhile.   I have several clients with products that generate profits of five thousand dollars to seven thousand dollars each and every month.  Since they are selling in zero-growth markets, they are unlikely to see increases in their monthly income, but they are also unlikely to experience a drop in monthly income because they are the sole suppliers of products which have a small but steady demand.  My clients who are running these businesses are doing it from their home based business.  They were able to quit their jobs, spend more time with their families, and they are able to thrive happily on the profit from these products even though the same income opportunity would not interest large companies.

For your information, Dow Jones produces a consumer trends magazine called “American Demographics” which you might find valuable.  The magazine offers reports on new trends, consumer markets, business trends, forecasts and charts, graphs etc.  For information write to:

American Demographics

PO Box 58184

Boulder, Co.  80322-8184

Or, visit their website at

You can also get information on trends from the “Statistical Abstract of the United States”, which can be found in your local library.  Again, your local research librarian may be able to help you.  Give them a call!  (See “potential market” heading for more information on obtaining your own copy of this great resource publication).

Yet another great source of information on societal trends is Ohio’s Bowling Green University.  The university has a department called “the Department of Popular Culture” which tracks trends, buying habits, and demographics pertaining to many different levels of society and types of cultural backgrounds.  You may contact them at:

Department of Popular Culture

Bowling Green University

Bowling Green, Ohio  43403-0190

Telephone (419) 372-2981     Fax 419-372-2577




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