Just got off the phone with one of the vendors who may be able to build our prototype/do production runs. I’ve got some mixed feelings on using this vendor. The general tone of the phone call was one of “Uh…we want to make sure you really want to build this product before we spend time doing estimates”. Well…that sucks. Hate that you feel lazy enough that you don’t want to do about 20 minutes worth of work to potentially have a lifetime customer. Bad customer service if you ask me.
Now, he did raise a good question for me. Again, since I’m not saying much regarding the product itself, I’ll try to elaborate unspecifically…however unsuccessful that may be. The general question he raised is one of this: “The price of the product will end up being higher than the value it delivers, at least in terms of actual hard dollars.” Hmm. Good point. Our product isn’t a necessity. The price point of the product will probably end up in the $30-40 range, and will provide anywhere between $2 and $100 of value to the customer each time it’s used. Most customers will fall underneath the $30-40 value/price range.
So, does this count this product out? Does this imbalance between value and price mean that the product doesn’t have a place in the market? Certainly not, and I might be biased, but let me explain a bit further.
Take, for example, one of those liquor bottle spinner things that holds your bottle upside down. These retail for anywhere between $285 (kegworks.com) and $25 (some random seller on eBay). The value of the product is simply that you don’t have to lift your own bottle up and pour it. Honestly, that’s it. If someone paid you $285 to lift your own liquor bottles to make a drink, would you? I certainly would.
So, why do these sell? Obviously they do, I’ve seen them all over the place and for sale at tons of places. Well, the value of product isn’t in the dollar-to-dollar savings, it’s in the novelty aspect of the product, as well as some perceived benefits.
For one, the product looks pretty cool. If I had friends over a lot, they’d probably be impressed and ooh and ahh over my liquor dispenser. Starting to rachet up the value here. Also, it (somewhat) saves me some space. Now, granted, it really doesn’t save much, and in fact, might actually take up more. However, it’s advertised to save you space. And that’s worth a bunch.
Remember something here: people doubt themselves the most. If you tell a potential customer, convincingly, that they need a particular product although the actual value may not make sense logically, they’ll think “Hmm…maybe they’re right. There must be something I’m missing out on that I just don’t get. I should buy one and see what it is”. Now, yes, I understand this doesn’t always work. Few people are running out to buy Ginsu knives because they think “Man, those knives must really be better than my Henckels.” I know that’s not the case, but enough people HAVE bought them to keep those wonderful late night infomercials running. Bless their hearts.
So, what’s all this rambling come down to? Well, it proves the importance of good marketing and positioning. Not everyone is going to have a need for your product, but someone will, and if you speak to the right people, in the right way, they’ll buy it.
Does this mean you can create anything and put it out? Well, it definitely worked for the guy who marketed the Pet Rock. However, no, it’s not an excuse to flood the market with crap products. Simply put, it means that to a customer, there is more to just dollar-for-dollar value. That’s the whole reason Mercedes-Benz is in business. They convince you that the stature is important…and that has little to do with what the car is intended to do – transport you from one place to another.
Ok, that rant is over.
The last point I’ll make is this. Vendors, and I think this is important, are in the business of manufacturing products. (By vendors in this case, I mean contract manufacturers). They are not, and should not be, involved with product feasability and marketing questions, unless it directly relates to a manufacturing process.
For instance, this vendor told me this would be an expensive product to make, and when I asked him what part of the design would be particularly expensive, he couldn’t really tell me, but simply stated he thought it would be more expensive than the value it delivered, on a dollar-to-dollar basis. Not his place to say, if you ask me. Do I appreciate feedback? Sure, but not baseless feedback. If he had told me that the way I designed the product would make it expensive to manufacture for reasons x,y, and z, then I would have appreciated it. He’s in the business of manufacturing, not me. This is why I would hire him.
To wrap up this insane rant, I’ll just underscore that people should evaluate products and services within the purveyance of their own expertise. I wouldn’t tell a hot air balloon manufacturer that the materials they use for their baskets don’t make sense. I have zero experience in marketing and manufacturing hot air balloons. Seems so simple, doesn’t it?
Unfortunately, this vendor already has an uphill battle getting me to do business with them. Just give me the damn quote and stop bitching.
