Good, Better, Best
Dec 18, 2024
Today i found out a project i have been working on for 3 years will go bulk production with a large brand in the US
During those 3 years it was a journey of testing and validation
Now i consult a big organization that does not charge a customer for product development but only charge for bulk manufacturing
This model will not work with most companies so i suggest the following
learn to break a product into good, better and best
products which are good will be lesser lead time and development costs - these will be for newer customers to gain interest and traction.
you get cashflow with good products - microfinance it with a million orders of 10 percent margins and you will float
these cheap products are not perfect and the price tag will reflect on it - of course learn to ensure that you dont go too cheap and affect your reputation
3) better products are the ones with significant development cost - you start a cocreation model with long term customers who have been working with you to help bring business for good products
with respect to the agreements (you will need to discuss if they are cool with covering development cost for a long term cocreation phase or have them make a commitment for larger MOQ - minimum order quantity)
cocreation projects will cater to customer needs that help them grow as well
4) Best products are ones which help you flex your muscles
these are internal projects which will eventually help you capture the attention of newer customers and bring onboard new ones.
these should be invested latter part of your journey in product development phase and finally ones you gain enough knowledge, talent and investment show the world what you can do.
to summarize - have good products for quick cashflow, better products for relationship building with existing customers for retention and best products to capture the market with newer customers.
A case study for the above
a company that is a shoe manufacturer B2B - where reebok is a customer will have 3 types of products
general consumer shoes - affordable price tag and smaller lead times plus development cost
a unique shoe that caters to reeboks design elements which was cocreated for 2 years and now ready to push to the market
a special shoe made internally that questions the norm in technological advancements which is catered to not just addidas but even offered to their competitors
highest bidder will be allowed to brand their logo