Ruthless Methods For Better Product Market Fit

Ruthless Methods For Better Product Market Fit

The most substantial reason people buy is the need to feel important. Second, other people in their peer group are doing it. The third is for safety and security. This means that a product should address status and peer acceptance first. We see this with brands like Apple, Yeti, and Nike.

Low-Value Needs

As a product guy, my focus has been on creating products that fit an unmet need in the marketplace. The problem with this approach is that people are price-conscious when it comes to needs. For example, a grocery shopper may turn down a $20 steak at the supermarket only to spend over $100 on a meal at a restaurant.

High-Value Desires

Most entrepreneurs understand that people buy on emotion and logically justify the purchase. However, only some founders consider this knowledge when determining product market fit. The truth is that the same people who buy a Yeti cooler for $350 over an Igloo ice chest for $40 are also involved in business buying decisions. They pass on business software because it does nothing for their status, acceptance, and security.

Status in Enterprise Sales

Raising the price is the fastest way to establish status, acceptance, and security in enterprise sales. A mid-level manager wanting to impress their boss has no emotional attachment to business software priced like everything else. It is tedious, may or may not solve the problem, and will not result in a promotion.

The moment the price is significantly higher than that of competitors, the question becomes, why? It invokes curiosity while also planting the idea that it must solve the problem better. However, it must back up the extra cost with added value. This value is positioned for enterprise sales as career advancement for the decision maker.

The Mattress Guy

Years ago, while shopping for a mattress, I received a master's class in sales. When asking an upscale furniture salesperson, "I see mattresses for $250 at other stores; what is the difference between those and the ones you have here?" The sales guy replied while pointing to a far corner of the store, "Oh, we have cheap mattresses too. They are in a rack over there." He did not have to address the differences or prove value for those priced 10x more. Everything was implied because who wants a cheap mattress?

Sunglass Hut

Most eye doctors recommend UV protection for our eyes. Most sunglasses provide this regardless of price point. I bought cheap sunglasses for years while my colleagues regularly wore Oakley, Smith, RayBan, and other designer brands. Finally, I bought a pair of Oakleys on clearance at Amazon. After that, I did not repurchase another cheap pair. The reason is that I feel the more expensive glasses are better for my eyes and envision looking more in style when I wear them. Although, my teenage boys say otherwise.

Amplifier of Status

When discovering product market fit, we must position our product as an amplifier of status. When IBM was dominating the computer market with beige, Apple made tangerine, blue, purple, and clear computers. They also raised the price to amplify further the status of those who bought them.

While more difficult with software or other intangibles, amplifying the customer's status is still possible. This can be accomplished by providing status symbols within your product. Apple offers two stickers for each computer, Yeti gives a sticker for every cooler, and Vineyard Vines provides a pink whale sticker for most clothing sales.

The AFLAC Example

American Family Life Assurance Company, or AFLAC, is a supplemental insurance company in Georgia. It provides insurance for blue-collar workers to pay for unexpected expenses related to accidents, injuries, and sickness. The little duck stress toy that comes with a policy can be seen proudly on toolboxes inside mechanic shops, on the cubicle desks of office workers, and even in the cabs of big trucks. For those inside the company, having the duck stress toy is a status symbol.

Conclusion

The best products raise the status of those who purchase them. Make sure your product, regardless of industry, satisfies the buyer's emotional need for importance, and you will quickly find product market fit.