April 20, 2024

The commodity versus the product

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What is it that you sell? Even if it’s just one product, it’s really more than one thing to your customer.

As an example, in his classic book “The E-Myth Revisited” author Michael Gerber shares this quick note about what Revlon actually sells:

Charles Revson, the founder of Revlon and an extraordinarily successful entrepreneur, once said about his company: “In the factory Revlon manufactures cosmetics, but in the store Revlon sells hope.” The commodity is cosmetics; the product, hope.

They make, manufacture and sell cosmetics, but people are buying hope.

You can draw a similar line with what we sell at GreenMellen. Someone may have us build a website for them, but a website isn’t what they ultimately want — they want stronger credibility, more sales, or something else that helps their business. The website can be a great means to get there, but it isn’t what they’re really after.

It reminds me of Theodore Levitt’s famous quote that “People don’t want to buy a quarter-inch drill bit. They want a quarter-inch hole.” They might have to go buy a quarter-inch drill bit, but what they want is the hole (and then likely to hang something like a bookshelf, and the benefit of showing off their collection to their friends). You might be selling drill bits, but people are buying the pleasure of a well-decorated home.

Know your products, make them awesome, but keep in mind what people are really buying when they make a purchase.

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