Custom LCDs Affect Profit Margins
Profit margins are affected by consumer perception
Enhancing the look of your older products can positively affect your profit margins. Custom LCD products can make a big difference in consumer perception. In a consumer product, the most important selling feature may not be its primary function, but instead the customer’s perception of your product. This may be more true for consumer products than for industrial or commercial products, but the end-user of any product may notice the difference in appearance and justify a higher price tag. The best products, defined by sales dollars, are those that optimize the perceived value and perceived value which can be greatly increased by a visually exciting LCD display.
Implementing a custom LCD display that has been optimized for your product can increase the perceived value of your product, and could escalate your average selling price thereby increasing your gross profit margin.
The LCD display you choose will probably be the same display as the previous model, and yet the LCD is the one feature that stands out most in your product. This is true whether your end product is an iPhone, amazon fire or a credit card reader embedded in a gas pump. The more unique the display you choose, the higher the perceived value of your product. Automobile manufactures have known this for years. Every year they release enhanced versions of the same car to increase its perceived value. Changes could include a new body style, instrument cluster or even a new sound system. Without these constant variations, they would not stand out against their competition.
If you have used the same monochrome LCD for the past several years, your product can be compared to the Ford model T. Check to see if your competitor has invested in something a bit more colorful.
VARIATION
When comparing the LCD incorporated in your product to your competitors LCD, Ask “How will the same old monochrome segment display on our product compare against our competitors bright, colorful and unique custom LCD?”
Design your custom LCD first
Many OEM’s (Original Equipment Manufacturers) select the LCD near the end of the design cycle. Be different; begin your new design by choosing your LCD technology first. Once you see what options are available to you; convince management to spend a little more time and money on the visual appearance of your product.
By designing your own custom LCD, you can remove the limitations imposed by off-the-shelf LCD modules. Start with a blank slate. Take out a piece of paper, or AutoCAD, and design your next-generation product to set yourself apart from your competitor. With a custom LCD glass, this is exactly the power you have.
Your Custom LCD reduces your cost
Is there an in-house manufacturing step that can be eliminated by incorporating the process into your custom LCD?
Is their duplication of components common to both your PCB and the LCD? Why not reduce your BOM (Bill Of Materials) and include them into the custom LCD. The reduction in components on your mother board could reduce cost and save valuable real estate.
Most custom LCD’s do not require a large upfront investment and for many projects it can be quite affordable. If you anticipate your product being around for a long time, performing a comprehensive due-diligence approach will save you in the end and your company’s profit margins will benefit.
Conclusion
One of the best ways to differentiate your product from your competition is by integrating a custom LCD into your application. There is a one-time tooling fee, but the increased long term profit margin could far outweigh this initial investment. This is a simple, economical way to improve customer perception thus affecting your profit margins.
Again, ask “How will the same old monochrome segment display on our product compare against our competitors bright, colorful and unique custom LCD?”