How to Research if Potential New Product Would Sell?

Most new products do not fail because the idea is bad. They fail because the research behind the idea is weak or incomplete. We see this pattern again and again with international founders who approach us after spending months building something that nobody is ready to pay for.

A common mistake is falling in love with the product too early. Founders often assume that if they like the idea, the market will like it too. But markets do not work on assumptions. They work on demand, timing, pricing, and execution. When even one of these is ignored, the product struggles from day one.

Another big reason products fail is that research is done in isolation. Online surveys, competitor screenshots, or social media comments feel like validation, but they rarely show real buying intent. Many products look promising on paper, yet collapse the moment real customers are asked to pay.

We also notice that founders underestimate market-specific factors. A product that sells well in one country may not work at all in another. In Europe, things like VAT, compliance, pricing psychology, delivery timelines, and local trust matter a lot. Ignoring these early creates false confidence during research.

This is why proper product research must go beyond ideas and trends. It must answer one simple but critical question honestly:

Start With a Real Market Problem, Not Just a Product Idea

Most founders start product research from the wrong place. They start with the solution. They think about features, design, technology, or how “unique” the product feels. In reality, strong product research always starts with a clear and painful market problem.

A simple way to check this is to ask yourself one question honestly: What problem does this product solve, and who is already feeling this problem today? If the answer sounds vague, generic, or forced, that is already a warning sign. Products that sell usually solve a problem people are already trying to fix, even if their current solution is bad or expensive.

We often see founders confuse interest with urgency. People may like an idea, comment positively, or say “this looks useful.” But liking something is not the same as needing it. Real problems come with frustration, cost, wasted time, or risk. If your product removes one of these clearly, you are on the right path.

Once the problem is validated and clearly defined, only then does it make sense to check whether enough people are facing this problem. That is where demand research really begins, which we’ll cover in the next section.

Market Demand Research: Check If People Are Actively Searching for This Product

Once the problem is clear, the next step is demand. This is where many founders rely on gut feeling instead of data. At FirmNL, we always recommend starting with search behaviour, because people search only when they already feel a need.

Look at how often your product or problem is searched on Google. Not just the main keyword, but related terms, long-tail searches, and “how to” queries. If people are searching consistently, it means demand already exists. If searches are close to zero, that is a signal you should pause and rethink.

Demand research also needs geographic clarity. A product may show demand globally, but not specifically in the Netherlands or the EU. This matters because pricing, VAT, delivery time, and trust expectations change from market to market. We often see founders misread global demand as local demand.

This is also where legal readiness comes in. Proper demand testing only works when you can actually sell. Without a legal structure, founders hesitate to run paid tests or accept real orders.
This is why many founders start validation after setting up a Dutch BV, so they can test the market properly and legally without friction.

Demand research is not about proving your idea right. It is about letting data tell you whether the market is ready to pay.

Pricing & Cost Reality Check: Will People Still Buy After Real Costs?

This is where many products fail silently. Founders see demand, interest, even early sign-ups. But once real pricing enters the picture, conversions drop. The reason is simple — pricing during research is often unrealistic.

When researching if a product would sell, you must calculate the final price, not the ideal price. In Europe, this always includes VAT, transaction costs, logistics, and ongoing compliance expenses. If your research ignores these, your demand data becomes misleading.

We see this often with non-EU founders. They test demand using rough pricing, then later realise that VAT alone changes the product price by 21% in the Netherlands. At that point, the product suddenly feels expensive to the customer, even though demand looked strong earlier.

This is why we usually advise founders to do pricing validation only after understanding Dutch VAT and tax structure. Having a clear view of VAT and EORI requirements early avoids false assumptions about margins and affordability. This is exactly where our VAT & EORI number registration support helps founders test pricing with real numbers instead of guesses.

Another issue is cost visibility. Many founders know their product cost, but ignore monthly accounting, reporting, and compliance costs. These may look small individually, but they directly affect unit economics at scale. Proper accounting and bookkeeping setup helps founders see whether demand converts into sustainable profit, not just revenue.

A product that sells at the wrong price is not validated.
It is only delayed failure.

Competitor & Market Entry Analysis: Why Copying Others Often Fails

Most founders research competitors by looking at websites, pricing pages, and ads. That is useful, but it is only surface-level research. What really matters is how competitors operate inside the market, not just how they present themselves.

In the EU and especially the Netherlands, competitors often succeed because they are locally structured. They have a local entity, local VAT setup, faster delivery, and higher trust with buyers. If you compare your product to them without accounting for these factors, your research becomes incomplete.

We see this mistake often. Founders assume that if a competitor sells at a certain price, they can match it. But they forget that local competitors may benefit from VAT structuring, EU warehouses, or lower logistics costs. Without a similar setup, matching that price may not be realistic.

This is why competitor analysis should always include market-entry readiness. Before concluding that a product can compete, founders should understand what it takes to operate locally. Many founders only realise this gap after they start selling.

Test Demand Through Real Sales Conversations, Not Assumptions

This is where product research becomes real. Data, searches, and competitor analysis are useful, but nothing validates demand like real conversations with potential buyers. If people are willing to talk, ask questions, and consider buying, your product is moving in the right direction.

Many founders avoid this step because they do not have a local sales presence. Cold outreach feels risky, and hiring a full sales team too early does not make sense. As a result, they delay sales testing and rely only on online signals. That delay often leads to wrong conclusions.

We usually recommend founders to test demand using small, structured outbound sales efforts. This can be simple — targeted outreach, short discovery calls, and clear feedback loops. The goal is not to close massive deals, but to hear objections, pricing resistance, and real interest levels.

This is exactly where appointment setting and inside sales outsourcing become part of product research, not just sales execution. By speaking directly to the target audience, founders quickly learn whether the problem is strong enough and whether the product positioning makes sense.

Our appointment setting services help founders reach decision-makers in the EU without building an in-house team, while inside sales outsourcing allows consistent demand testing at low risk.

The biggest advantage of sales-led validation is speed. In a few weeks of real conversations, founders learn more than months of passive research. Weak ideas get filtered early. Strong ideas gain clarity and confidence.

Legal, Tax, and Compliance Factors That Quietly Kill Product Demand

Many products look promising during research but fail after launch because compliance was ignored early. This usually does not show up in demand data, but it directly affects conversion, trust, and scalability.

In the EU, buyers expect clear invoices, VAT transparency, proper business details, and reliable fulfilment. If these are missing, customers hesitate — especially in B2B and higher-value products. We see founders lose deals not because of the product, but because the setup did not feel trustworthy or compliant.

Another issue is delayed readiness. Founders validate demand informally, then rush into legal setup once orders start coming in. That gap often causes payment delays, VAT confusion, or operational stress. At that point, demand exists, but execution blocks growth.

This is why we recommend founders treat legal and tax readiness as part of product research, not as a later step. Understanding VAT obligations early helps set the right pricing, invoice correctly, and avoid surprises after launch.

 Our guide on VAT number registration in the Netherlands explains how VAT impacts selling in the EU and why it should be planned before testing demand seriously.

Validate at Small Scale Before Full Market Entry

The goal of product research is not to prove that an idea is perfect. The goal is to reduce risk before scaling. That is why the smartest founders validate at a small, controlled level before committing fully to the EU market.

Small-scale validation means selling to a limited audience, testing one country first, running controlled sales conversations, and tracking real numbers. This includes actual pricing, VAT impact, delivery timelines, and customer feedback. When all of these align, confidence in the product increases naturally.

We often advise founders to avoid “big launches” during early validation. Instead, start lean. One market. One clear customer segment. One simple offer. This makes it easier to spot problems early and adjust without burning time or money.

Validation also brings clarity. Founders quickly see whether demand is real, whether customers understand the value, and whether margins make sense after real costs. Weak ideas fade fast. Strong ideas become obvious.

At FirmNL, we support founders through this exact phase — from legal setup and VAT readiness to sales testing and operational planning. Our role is not just to help you enter the market, but to help you enter it with confidence and clarity.

Because in the end, a product that is properly validated does not need convincing.
The market does that for you.

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