Launch Operations
Part of Launching a direct-to-consumer brand
Testing a DTC proposition with buyers before ordering stock
Choose a pre-stock test that answers a specific DTC offer question, interpret each signal correctly and set a decision rule before committing cash.
Put a proposed DTC product, its price and its purchase terms in front of intended buyers before committing to stock. Seek a response to that specific offer, not just a reaction to the idea.
Decide in advance what evidence would justify a small order, another test or stopping. Positive comments can guide the next step, but they are not orders or proof that the costs work.
State the offer as a buyer would see it
Prepare a short, accurate description of the product, its intended use, what is included, important limits, proposed price and delivery assumptions. Use the same core description when comparing responses. If the product is a prototype, say so; do not present an unconfirmed feature or dispatch date as a promise.
Write one main hypothesis: people who face this task will choose this product at the proposed price instead of the alternative they currently use. Then write a plausible competing explanation, such as buyers liking the design but having no need for another product, or the offer appealing only at a price below its likely cost.
Choose a check that answers the question
| Check | What it can reveal | What it cannot establish alone |
|---|---|---|
| Problem interview | The customer’s current task and alternatives | Willingness to pay for this exact offer |
| Concept review | Confusion, objections and perceived fit | Actual buying behaviour |
| Prototype use | Practical difficulties with a sample | Demand at production scale |
| Genuine order under stated terms | Response to a real offer | Repeat demand or long-term profitability |
Choose a method that can resolve the current uncertainty. Surveys or interviews with potential customers can gather feedback; prototype testing can show how a group of potential customers uses a sample. If the design is still changing, prototype feedback may be more useful than promoting an offer you cannot yet deliver.
A genuine order means a buyer places an order for the specific offer at its proposed price under the stated availability and fulfilment terms. An email sign-up or expression of interest signals interest in more information, not an order.
Keep the offer and measurement honest
Show the conditions a buyer needs to judge: product details, price, delivery expectations and limits. If you use a landing page or expression-of-interest form, explain what submitting it means. Only accept an order when you can state accurate availability and fulfilment terms and meet the obligations that apply.
The Australian Consumer Law (ACL) applies to all businesses selling goods and services in Australia. Give truthful information; goods must be of acceptable quality, match their description and be fit for the stated purpose. Customers can ask for a refund, replacement or repair if goods do not meet a consumer guarantee, and a ‘no refunds’ policy cannot override those rights.
The ACCC can require businesses to back up product claims and may investigate misleading claims. It does not resolve individual disputes; state and territory consumer protection agencies manage individual complaints.
Record where participants came from and which offer they saw. Friends may help identify confusing language, but their responses are a weak basis for claiming wider demand. Clicks from an audience that cannot or would not buy are poor evidence for the intended market.
Key Legal and Financial Considerations
- Australian Consumer Law (ACL) applies to all businesses in AustraliaYes
- Goods must be of acceptable quality, match description and be fit for purposeRequired by ACL
- Refunds, replacements or repairs available if goods fail consumer guaranteesYes
- ‘No refunds’ policy cannot override consumer rightsFalse – not permitted under ACL
- ACCC investigates misleading claimsYes
- Individual complaints managed by state/territory agenciesCorrect
Set a decision rule before seeing results
Before testing, state what response would justify a small order, another test or stopping. Set the response threshold for your intended buyers and include the supplier minimum and the maximum cash you are prepared to risk; do not decide after seeing the results.
Use business.gov.au’s start-up costs sheet template to record relevant estimates. Label estimated figures and state whether they include or exclude GST; account for the product, packaging, payment, delivery and returns costs identified for the offer.
An offer can attract buyers yet leave too little after product, packaging, payment, delivery and returns to support the business. Few responses may point to a problem with the message or how people were reached, so examine that before drawing a conclusion about the product.
Record the offer, audience, method, observations and limits. Avoid turning a few favourable comments into a percentage claim. Before ordering, compare the evidence with supplier minimums and the cash at risk. Choose order size deliberately; early enthusiasm may not continue unchanged.
