Make sure a product's price exceeds its manufacturing costs.
What does a Product Development Actuary do?
New products hit the market shelves every day, but the endcap is the last stop in a long journey for any new product. Long before consumer hands grasp its boxy exterior, the product spends time (possibly years) in research and development. Along the way, the company producing it pours a lot of money into employees, shipping, equipment, and manufacturing costs. That’s why they hire a Product Development Actuary to consider all the factors and decide whether the product is worth the investment.
In a nutshell, a Product Development Actuary performs risk analysis. Is there a need for this product? How many will consumers buy? How does the economy and state of the market affect sales?
And it’s not just new products. As a Product Development Actuary, you analyze the performance of existing products, too.
This is a highly specialized position that has you acting as a Mathematician, an Economist, and a Marketing Director. That’s because there are many factors to consider, such as the market’s reaction to similar products, the mood of the consumer, the price of supplies, advertising costs, timing, competition, and industry legislation.
It sounds like a lot, but if you have an understanding of economics, mathematics, and computers, then you may be perfect for the job. Anyway, you can use software programs and computations to help you figure it all out. And when you do, you’ll have the Vice President of Sales or the Chief Financial Officer begging for your insight!