Business Chops Tip #21: Is Commoditization Bad For You?
A commodity is any product (goods or services) that is marketed to satisfy customer needs. Within a given product category, competitive brands are often differentiated by price. Examples like oil, wheat, and airline tickets come to mind. Within the global AV industry, price competition and the “race to the bottom” have given products like LCD televisions, wire and cable, or stock headphones commodity status.
In the custom retail industry, the word “custom” implies that every system is different, with infinite variations of value added for each customer. Is commoditization bad? Not necessarily. Embrace commoditization as an opportunity to add value.
Author’s Note: Creative and technical professionals (from musicians and actors to designers and engineers) rely on their ³chops²: those skills and techniques that they use to be successful on the job. Stiernberg Consulting coined the term Business Chops to encompass those skills, experience, and tactics that you rely on to be more successful. Whether you are a dealer, manufacturer, distributor, rep, or design firm, this series includes tips and techniques for optimizing sales, profits, and growth of your Custom Retail business.