Part 3 of Positioning — Product Quality
As creators we’ll always aim to create the best product we can, but does the word “best” always have to pertain to the crème de la crème? As good as it may sound, sometimes we don’t need 6000 thread count sheets with locally sourced Egyptian cotton. Sometimes the best, is just what you’re looking for in that moment.
By identifying what makes our target consumer tick, we can analyze what they perceive as top quality, low quality and everything in between. Look at your market; is there a product that you can provide that the consumer is missing? Is it saturated with high priced — high quality goods or low priced — low quality? Is there an opportunity perhaps, for a high quality — low priced product?
As an example let’s say we’re looking to provide a higher quality product at a lower price point.
First we’ll assess the price range customers are willing to spend on a product in your niche. Take a look at a few competitors at various price / quality levels for the market you will be selling your product in.
Quality + Manufacturing Cost:
Reach out to suppliers to get an accurate quote on production of the product + packaging + shipping. Try to grab quotes from different suppliers at various quality levels — high, medium, and low. Take a side-by-side look at all 3.
Sale Price:
What can you sell each for? Most importantly, what are your customers willing to purchase your product for? And even more important, will you be profitable?
Note: Taking a hit on profits to offer a product at a lower price can be beneficial in some instances. Price is typically the first thing we think about when buying something and if I can get the same great quality at a lower cost, I’d say you’ve got me there.
Overall it’s important that product integrity comes from the proper relationship between quality and price. Be honest, informative, and be the company you’d hope for as a consumer. If you’d like a visualization there’s a handy image called a Price Value Matrix in our previous post.
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