Words of guidance and insight from an experienced entrepreneur and private investor to high-tech entrepreneurs, start-up companies, and fellow investors.
Sunday, May 8, 2011
Anti-wrinkle cream phenomenon...what?
Well, you've found that your product really doesn't work that well. But you've found a customer who really needs your product for use in their product. They need it because they need an "edge" over their competition...something they can use to market a new version of their product and get more market share. In fact, your product doesn't even really have to work, but it has to be "perceived" as making a difference. I encountered this situation once, and coined it an "anti-wrinkle cream phenomenon" (because, well, do anti-wrinkle creams really work??). One can generalize this phenomenon to many "gimmicky" consumer products out there (just tune in to late-night infomercials for some examples). I'm writing about this today because, while your product might sell in such a situation, do you really want to be part of a company that fakes out its customers (or customer's customers)? Your company will be much more rewarding for you and all involved if you can build and sell a product that truly has value, and not just a placebo.
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