Oct 23 • General discussion
The FUN and THRILL of selling a commodity
Folks will tell you: It's hard to make money selling a commodity!
Too much competition!
or
The market is already saturated!
or
You have to sell something TOTALLY NEW and capture market share!
None of that is actually true.
IF...
You are the lowest price option in the market (while still being profitable)
And:
You fix the things people don't like about the current offering.
My favorite example is Liquid Death.
They sell water.
Commodity? Yes.
You can get water for FREE pretty much everywhere.
Competitive? Arguably the most competitive industry on the planet.
Boring? Very boring.
But they made roughly $260 million last year.
Selling cans of water!
Price per can of water is about $1.50 USD - about the same as a regular bottle of water from Dasani.
Even cheaper if you buy a six pack.
What was the innovation?
Did they invent a new kind of water? Nope.
Did they create some new type of container for water that made it easier to drink? Nope again.
They just made the can look like alcohol.
That's basically it.
When you drink, it you look cool and fit in.
We're essentially doing the same thing with SaaS: we take a boring product that everyone already needs, fixing something people don't like about it, and selling it for cheaper than everyone else (on the front end).
Often times we can call out the "enemy" which are the greedy competitors charging $99/mo for a knowledge base.
When you combine all these together - and the fact we can run ads and cover ad spend - we have a fun profitable little business that is easy to run.
Sound off below pretty please if this is making sense???
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The FUN and THRILL of selling a commodity
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