So you’ve been asked as an entrepreneur…Why will the customer buy from you????
Volume IV: The reality behind the sham concept of a unique product, unique business model and unique this and that!
A quick tip: If you’re in a rush and want a quick insight, scroll to the bottom of the blog and read the tip.
Does your product truly need to be unique?
So. This, is going to be interesting. Let’s start with simple yes or no questions:
- Does your product need to be unique?
Ans: Yes
2. Is there a higher probability that your (unique) product will be accepted in the market and result in deeper penetration and/or frequency or both?
Ans: Hell Yes!
3. So you just carry out market surveys and then after some R & D come up with a unique product right?
Ans: Ahh Yes.
4. That’s it then? You follow the steps from 1 to 3 and you’re through right?
Ans: Logic — Yes. Reality — What the bloody hell! No!
Hang on. So what’s the deal here? All the questions from 1 to 3 make sense so where’s the catch? The truth is there’s no catch. It is just that there are more realities and a bigger reality than this is that when you introduce a unique product and penetrate the market you have SHOWN EVERYONE WHAT TO DO AND HOW TO DO IT! BINGO!
Now the market will stand up and take notice. No matter how much brand positioning, market penetration, strategy, you’ve implemented there are much bigger, better players with a LOT more resources at their disposal and they WILL come hard at you WITHOUT notice and introduce a much more advanced version of your product with aggressive promotions and relentless distributions channels within a matter of days. Why else do you think that pioneers are unable to be market leaders over time?
Does this mean that we shouldn’t have a unique product?
The answer to this is “No”. For simple reasons, there is another question lurking which isn’t asked. That question being the bigger question:
What do we do once our product has been accepted in the market?
While this question doesn’t come into consideration until your product has been accepted in the market and there is sufficient penetration it keeps you on your toes once it has. You’re not taken by surprise and are ready to face the challenges. Many companies have been doomed precisely for this reason. An amazing product or concept launched with success and then ruined by overnight unexpected competition. So yeah, it does make good sense to be wary of this fact right from inception.
Why will the customer buy from you???
So what sells? A unique product? If yes then what about all those products that have multiple options in the market? Aren’t they selling? We’ve already understood that once a unique product/concept is launched in the market then it is replicated by the competition. They won’t pass an opportunity it’s that simple.
This entire love affair of coming up with a great product is true yes but only for a short period. After that, it’s a common product. Let’s call it the honeymoon period shall we? The investment of time, money and efforts to come up with a unique or customized product is huge. It requires tremendous effort. Maybe even a R & D team. That is something for the larger corporations, isn’t it? So what are we arriving at here?
If a good product/concept just hits you like an idea grasp it. If it doesn’t please don’t waste your time either trying to create it or plan for it. Utilize the same time to kick off with an existing product in the market and work on that. Not only will you have experiential learning from this but you will also have a market presence.
Let’s talk about business here to understand what we just said. What’s business? Bottom line (profit) and top line (sales). Yes, everybody knows that. Then again, how much? No Kotler or Harold-Koontz will give you an exact metric. Trust me even if they do it won’t be realistic.
YOU AND ONLY YOU DECIDE YOUR TOPLINE AND BOTTOMLINE FOR A GIVEN PERIOD.
Your entire business strategy has to be built around this decision. It’s not about a unique or common product. That’s why a bad product gets scrapped as the cost is accounted up to the product level and a bad product bleeding expenses over time is scrapped. That’s just the simplest way to explain it.
To sum up:
a. Decide your top line and bottom line
b. Choose your product (unique or common) doesn’t matter
c. Work out how the chosen product will or partially will help you with your chosen business targets. Add more products or strategies to the kitty to cross the bridge
d. Execute and keep track of this through correction cycles either through changing or adding products or strategies.
Remember, a new level of business has its distinct dynamics. You feel it when you reach it. The core never changes though. Sell your product. Make your top line and your bottom line. Rest all is between the lines. So go with your gut.
The next time someone asks you “Why will the customer buy from you????” just reply with a simple “Why not?” and a smile.
A Quick tip
While it is good to have a unique or niche product the reality is that once this has been accepted in the market you would be surprised with an overnight intrusion through competition as you’ve shown the way to the market. Primarily the reason why pioneers mostly fail to continue being the leading brand after a few years.
Why will the customer buy from you? Well, aren’t the regular products offered by multiple brands selling? Indeed they are. So you don’t need to offer them something unique as being unique has a time limit and a very short one. Beyond that, it is nothing more than a common product offered by multiple suppliers.
So focus on your business by working on the top line and bottom line and don’t invest your time money and efforts in building something unique which will probably last a few months. Remember whether the product is unique, new or old execution is everything.
Hope this made some sense if not total sense.
Namaste!
