One fundamental reason why a business fails.
Almost always it’s the failure to understand the underlying reason for its existence.
Ask anyone what kind of business they are in? Naturally, they respond with the name of the commodity they sell. “We’re in the computer business.” Or, “We’re in the hot tub business.” Always the merchandise, never the product.
Business Fails and the Cause
The commodity is the thing your customer feels as he walks out within his hand. The product is what your client feels as he walks out of your business.
What he feels about your company, not what he feels about the commodity.
Understanding the difference between the two is what creating a great business is all about.
The Surprising Truth About Buying
The truth is, nobody is interested in the product. People buy feelings. What feeling will your customer walk away with? Trust? Power? Love?
Charles Revlon, the founder of Revlon. Once said about his company: “In the factory Revlon manufactures cosmetics. In the store Revlon sells hope.” The commodity is cosmetics; the business we are in is to sell hope.
Now the question comes, how can you introduce this perspective of selling feelings into your own business?