SUMMARY
- Many product can earn a large profit but some may eventually become a large liability.
- some products are known to be dangerous. Selling dangerous products may not be worth the money and hassle you will deal with.
- Research your products and understand where the liabilities come from.
PROFIT VS LIABILITY
Deciding to sell a product always comes with liabilities. Some products you decide to sell comes with large margins but as a business owner, you should decide whether the product is worth the amount you may lose in the process. If your product will potentially harm a consumer and the injury can be large, the damages may cost more than the profits you made selling your product and affect your business. There are other products, that may be lower margins but are overall safer.
WHAT KIND OF PRODUCT ARE YOU SELLING
Are you selling a product that is potentially dangerous? Products like a portable fan are smaller and less complex. These types of smaller products are likely to harm another person. Compare this to a product like lawn darts. They are known for being dangerous and it is easier for a consumer to be injured while playing lawn darts. Before you sell a product, just think about the potential injuries and complaints that may occur. In the end, the business will be the one that will have to deal with the complaints.
INJURIES THAT HAVE HAPPENED PREVIOUSLY
On top of understanding the type of product you sell, you should also research the type of injures that may have happened. Just making a quick search on a product or looking at complaints for comparable products can help you understand the type of issues you will run into. In addition, understanding these complaints and injuries may also help you develop a more creative way to avoid the same complaints and issues.