Many companies make the mistake of assuming that counterfeiters are just an annoying nuisance. However, the reality is that they can do a lot more than just bother a few customers. Counterfeiters can also cause real, financial damage to your business. The Mistake of Assuming If you want to avoid losing a lot of money, it is important to invest in anti-counterfeiting technology. The right counterfeit protection will help your company gain money and stay financially healthy. The Mistake of Assuming Here are some examples of ways anti counterfeit solutions provide financial benefits.
Improve Your Overall Sales
Did you know that counterfeiters can cause a direct loss in sales? The Mistake of Assuming Experts estimate that counterfeit trade results in a direct profit loss of $100 million per year. Even though a counterfeit doesn’t offer all the benefits of your product, it can still put a dent in your sales. There is often a misconception that the people who buy a cheap counterfeit would never buy the real version. However, the reality is that modern counterfeiters are very savvy and often target customers who don’t even want a counterfeit. Online shoppers who would’ve been happy to purchase a legitimate product can find themselves mistakenly purchasing a counterfeit from a sketchy website.
Ultimately, you are in direct competition with counterfeiters. Putting a stop to these counterfeiters ensures interested customers end up actually working with your business. Once you stop counterfeits, you will typically find that your number of customers is on the rise.
Reduce the Risk of Customers Associating You With Low-Quality Products
In addition to direct loss of sales profits, counterfeiting also has indirect costs that hurt your finances. Whenever a counterfeiter harms your reputation, they are harming your bottom line. After stealing a single sale from you today, they can make it harder for you to get more sales in the future. A big issue with counterfeiters is that their products might look similar to yours but are far lower in quality. A customer who accidentally purchases a counterfeit has no way of knowing this though. Instead, when their fake item falls apart, they’ll blame your company and potentially share negative reviews with others. Companies that don’t bother with counterfeit solutions can end up struggling because consumers assume their products are pricey and of poor quality. If you want to maintain a strong brand reputation, you need to take a proactive approach to stop counterfeits.
Enhance Your Business’ Opportunity for Growth
When counterfeit goods cause you to lose sales, they also impact the future growth of your business. As many business experts say, sales losses lead to job losses. When you are constantly having to make budget cuts and lay off employees, it is hard to invest in your future. The lack of funds to enhance your business model causes more losses for you down the road. If you are unable to research new technology or forecast future trends, you can end up creating a product that customers are no longer interested in. This is a major reason why anti-counterfeiting technology is so important. By halting sales losses, you can ensure you get the profits needed to help your business grow. This can lead to more financial opportunities for you in the future.
Avoid Pointless and Expensive Personal Injury Lawsuits
Counterfeit products can be very dangerous for your customers. They are often made from toxic products, produced without proper oversight, and break at unexpected times. If a counterfeit causes problems for a customer, there’s a chance they can sue you. Of course, you can usually prove that your business didn’t produce the counterfeit product your customer ended up with and avoid paying any massive settlements. However, doing so typically requires paying legal fees and dealing with the consequences of bad press. In some cases, you’ll also need to spend legal fees to track down the source of the counterfeit and stop more of your customers from getting injured. Proper counterfeit solutions can help reduce the risk of this happening. It allows you to use your funds to support your company instead of having to waste them on dealing with frivolous lawsuits.
Save Money When Dealing With Counterfeiting
Preventing counterfeiting is far more cost-effective than bringing counterfeiters to justice. If someone is currently counterfeiting your product, you typically have to pay investigators to get proof and then sue the counterfeiters to make them stop. This is a timely, expensive process, so it is best to keep it from happening in the first place. Ideally, you should set up safety measures that stop counterfeiters in their tracks. The costs associated with adding some extra security to your production process are far cheaper than the costs of tracking down counterfeiters and bringing them to justice. Taking a few preventative steps as early as possible can save you a lot of money down the road. If you want to get all these benefits, it is important to find some effective anti counterfeit solutions. At Authena, we work hard to protect your company. Our anti-counterfeiting technology helps you identify potential issues and stop them before they arise. To learn more about our services, contact our team today.