How do you compete with free products or with products that are already established before yours?
Get out there and do the work! Work to find how can you add value to consumers who use your product or service. Here are a couple of examples where a product or service compete against “free” or already established product or service.
1) Bottled water vs. free tap water. Bottled water is $16 billion industry. But we have free water available so what are we paying $16 billion for? We’re buying the convenience. Bottled water goes with us to meetings, sport events, road trips, is by our bed at night, is with us on treadmill at the gym, and gives us company in our cubicles at work. Its convenient to pick one up and carry it around where ever you go.
2) Private schools vs. free public school education. According to a report published by the National Center for Education Statistics (NCES) in 2002, in 1999-2000, approximately 27,000 private schools accounted for 24 percent of all schools in the US. According to the National Association of Independent Schools (NAIS), the median tuition for a private day school in 2005-2006 in the United States was about $14,000 for grades 1 to 3, $15,000 for grades 6 to 8 and $16,600 for grades 9 to 12. Where as education at public schools is free. So why would parents pay over 14 grand per child per year? The reason is private schools usually add more value to the consumer (child and parents). Private schools usually have well-balanced class size, good safety reputation, special academic programs and much more to offer than a public school. And parents are willing to pay for that “extra” service and security.
3) iPod vs. any-other-mp3-players (cheap or expensive). Apple was not the first in the market with an mp3 player or even first one to come out with a hard drive based mp3 player. Then what made it a big blockbuster product?
Joswiak credits the company’s ease of use—both with the music player itself and with the iTunes software that connects the iPod to either a Mac or a PC. The total package only became stronger when Apple added digital music sales via the iTunes Store, launched in 2003.
Soon iPod’s trendy looks became a status symbol that lead to increased loyalty. Same (convenience) holds true for iTunes’ 99-cent songs vs. free downloads from peer-to-peer networks. The convenience and smooth integration of the killer-product (iPod) with a killer-app (iTunes) was meant to capture the market like none other.
4) Clocky vs. gazillion other clocks. “The Clocky requires you to do more than stick your arm out and tap something,” said Dr. Todd Swick, a sleep specialist at the Houston Sleep Center in Texas. “It will recruit more of your senses–actually getting up, finding it and shutting it off–and convince you to start the day.” When the alarm clock goes off and the snooze button is pressed, the Clocky rolls off the bedside table and onto the floor. It rolls on until it finds a suitable spot to hide and rest. When the alarm sounds again, the sleeper has to get out of bed and search for the clock to turn it off. By now the person is fully awake. Thus, Clocky performs better than other alarm clocks in ensuring that you get out of bed on time and of course its fun to see your partner run after a clock.
So do you have a product or service that is more convenient, performs better than other products in its category, has good usability features, is easier to use and adds more value to its user? Find “the need” that has not been fulfilled yet and fulfill it.
“Make yourself necessary to somebody.” – Ralph Waldo Emerson (American Poet, Lecturer and Essayist, 1803-1882)