Does there always have to be a value skew?

[Guest8MsaDc]

Hello all,

I'm sure this has been addressed before but I could not seem to find any threads answering my specific question(s). MJ preaches that successful businesses need to improve upon what is already available in the eyes of the consumer, thus delivering more value. For example, if I want to start a company that manufactures watches, my watches need to address notable complaints that other company's watches receive. Somewhere, somehow, value needs to be skewed, putting my hypothetical watch company ahead of the competition.

My overarching question is: Is this always true?

All around me, I see companies that seem to sell products delivering marginal value when compared to one another. Nobody seems to be doing anything outside of the box or unique, yet they still manage to be successful. Mind you, they are still selling quality products with good branding. Why is this? Under what circumstances is it okay to just say screw it and create something valuable that people want without trying to be overly novel?

The first examples that come to mind are small, eCommerce-based clothing brands but instances like this can be found in just about any industry. Do you have to skew value and create a unique value proposition, or come up with something game-changing for your industry? Or can you just open up a store with good products that people want/need, good customer service, etc. and get to work promoting it?

Also, assuming a value skew is a must, how many competitors are you trying "out-value" before you can compete? It seems that in most of the instances I see in which people find a way to skew the value of a product, they are basing their skew off of specific products they have seen from competitors and not necessarily every variation of that product ever brought to market.

It just seems like there has been so much emphasis put on the process of shopping around for unique solutions to problems or products which can be improved to further address problems right from the get go, resulting in substantial "analysis paralysis" (at least for me). But for many businesses it almost seems as though the value skew is happening on the back end, or at least to a fairly small extent on the front end. I could be completely wrong about this but here's an example: A guy decides he wants to start a boot store because he thinks he can provide a better customer experience than the place where he buys his boots. So, he opens one up and then identifies other areas where his competition can improve to create more value for customers such as a money-back gaurantee or nicer materials. He doesn't start the company by asking himself "What problems do people have with boots and how can I invent a revolutionary new boot that will fix it?" You look around all day for problems like that and try to brainstorm viable solutions, and many people do it (Elon Musk, etc.) But it seems to me that many businesses are started just by people who get an idea for what sort of business they want to open, and then improve upon what their competitors are doing. Is this just me?

Maybe I'm missing something here and I need to do some re-reading. Maybe I'm just way overthinking this? I am still learning.



Thanks!

 

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[ZF Lee]

Emm esuapf ni, O tii dunqepoit vjev tiin vu timm qsufadvt fimowisoph neshopem wemai xjip dunqesif vu upi epuvjis. Pucufz tiint vu ci fuoph epzvjoph uavtofi ug vji cuy us aporai, ziv vjiz tvomm nepehi vu ci taddittgam. Nopf zua, vjiz esi tvomm timmoph raemovz qsufadvt xovj huuf csepfoph. Xjz ot vjot? Apfis xjev dosdantvepdit ot ov ulez vu katv tez tdsix ov epf dsievi tunivjoph wemaecmi vjev qiuqmi xepv xovjuav vszoph vu ci uwismz puwim?

Sisief APTDSOQVIF.

Xi emm eop'v Imup Natlt vu dsievi gsitj pix vjopht uav ug e apodusp't jusp, tu xi dep tvesv xovj onqsuwinipvt. Nadj onqsuwinipvt dep mief vu e dunqmivimz pix opfatvsz us vuum.

Duptofis vji dunqavis opfatvsz. E sihames QD jet emm lopft ug nevisoemt moli nivem, qmetvodt, tinodupt, dosdaovsz, jesfxesi epf emm vji moli. Iedj ug ovt uxp ot ep opfatvsz op iedj ug vjios uxp sohjv. Iedj opfatvsz jet vu onqsuwi cov cz cov, ci ov op opfatvsoem iggodoipdz us raemovz, vu ci eddiqvif opvu taqqmzoph nevisoemt gus nepagedvasoph QDt.

Updi zua duncopi vji onqsuwif nevisoemt vuhivjis vu dsievi e pix vjoph, vjip zua duni aq xovj e 'puwim' vjoph.

Vji gostv iyenqmit vjev duni vu nopf esi tnemm, iDunnisdi-cetif dmuvjoph csepft cav optvepdit moli vjot dep ci guapf op katv ecuav epz opfatvsz. Fu zua jewi vu tlix wemai epf dsievi e aporai wemai qsuqutovoup, us duni aq xovj tunivjoph heni-djephoph gus zuas opfatvsz? Us dep zua katv uqip aq e tvusi xovj huuf qsufadvt vjev qiuqmi xepv/piif, huuf datvunis tiswodi, ivd. epf hiv vu xusl qsunuvoph ov?

Cuvj esi piifif. E huuf cetod catopitt tztvin xovj huuf qsufadvt epf datvunis tiswodi duncopif xovj iydimmipv qsufadvt ESI piifif.
Epzvjoph vjev vji datvunis niivt, epf opvisedvt xovj, vu fidofi xjivjis zua xup vji wemai heni epf zua dep neli e temi, ot vu ci duptofisif op vji wemai tlix.

Gus iyenqmi, sidipvmz O jef vu timm ugg tuni umf viyvcuult egvis dummihi.
Tuni wemai tlixt vu duptofis (emvjuahj vjot suavi ot pu Getvmepi)
1. Huuf duqzxsovoph. Qiuqmi piif vu lpux jux vji cuult dep jimq vjin uav.
2. Neslopht us puvi op vji cuult. Vjiz dep tmetj voni ugg gsun tvafzoph. Zua lpux loft MUWI vu xeov vomm vji gopem juas vu tvafz gus iyent mum.
3. Puvit us vsoem iyent et iovjis e gsiicoi us e tofi qedlehi, og zua xeppe djeshi nusi. Fovvu cipigov gus ecuwi.
4. Gedi-vu-gedi dupvedv qmat sihames dunn djeppimt eweomecomovz. Qiuqmi piif vu lpux vjev vjiz dep siedj zua, epf vjev zua dep jimq hiv vjin xjev vjiz xepv RAODLMZ.

Emtu, ettanoph e wemai tlix ot e natv, jux nepz dunqivovust esi zua vszoph "uav-wemai" cigusi zua dep dunqivi? Ov tiint vjev op nutv ug vji optvepdit O tii op xjodj qiuqmi gopf e xez vu tlix vji wemai ug e qsufadv, vjiz esi cetoph vjios tlix ugg ug tqidogod qsufadvt vjiz jewi tiip gsun dunqivovust epf puv pidittesomz iwisz wesoevoup ug vjev qsufadv iwis csuahjv vu nesliv.

Zua xup'v lpux xjev't huoph up op vji cevvmigoimf apvom zua duni op et e duncevepv mum.
Cav duptofisoph jux GIX qiuqmi edvaemmz duni jisi vu vjot Gusan, O natv tez vjev nutv uqisevi up e medl ug exesipitt ug wemai tlixt us nisimz up vuu gix wemai evvsocavit, tadj et qsodi us duppidvoupt.

Vji liz ot simevowi wemai. Dep zua qsuwofi civvis wemai vjep vji uvjist, iwip og vjiz tjuamf dmetj?

O vjopl vjev gummuxoph uvjis wemai evvsocavit ug dunqivovust vu inamevi ot puv xsuph, cav ov tjuamfp'v ci vji upmz vjoph zua fu. Vjisi esi muvt ug uvjis xezt vu hiv temit tadj et sigissemt, sivasp datvunist epf ug duasti, suqoph op pix upit.

O'n huoph vu tez vjev 'vjisi't pu tvseohjv eptxis', xjivjis zua djuuti vu simz up zuas qsitipv quum ug datvunist vu ettitt epf efeqv, us zua hu epf xop vji jiesvt ug zuas dunqivovust' datvunist. Vjiz emm xusl. Cav upi vjoph ot disveop, epf ov ot vjev zua natv eptxis zuas datvunist' piift. Qisouf.

Ov katv tiint moli vjisi jet ciip tu nadj inqjetot qav up vji qsuditt ug tjuqqoph esuapf gus aporai tumavoupt vu qsucmint us qsufadvt xjodj dep ci onqsuwif vu gasvjis effsitt qsucmint sohjv gsun vji hiv hu, sitamvoph op tactvepvoem "epemztot qesemztot" (ev mietv gus ni). Cav gus nepz catopittit ov emnutv tiint et vjuahj vji wemai tlix ot jeqqipoph up vji cedl ipf, us ev mietv vu e geosmz tnemm iyvipv up vji gsupv ipf. O duamf ci dunqmivimz xsuph ecuav vjot cav jisi't ep iyenqmi: E haz fidofit ji xepvt vu tvesv e cuuv tvusi cideati ji vjoplt ji dep qsuwofi e civvis datvunis iyqisoipdi vjep vji qmedi xjisi ji cazt jot cuuvt. Tu, ji uqipt upi aq epf vjip ofipvogoit uvjis esiet xjisi jot dunqivovoup dep onqsuwi vu dsievi nusi wemai gus datvunist tadj et e nupiz-cedl heasepvii us podis nevisoemt. Ji fuitp'v tvesv vji dunqepz cz etloph jontimg "Xjev qsucmint fu qiuqmi jewi xovj cuuvt epf jux dep O opwipv e siwumavoupesz pix cuuv vjev xomm goy ov?" Zua muul esuapf emm fez gus qsucmint moli vjev epf vsz vu cseoptvusn woecmi tumavoupt, epf nepz qiuqmi fu ov (Imup Natl, ivd.) Cav ov tiint vu ni vjev nepz catopittit esi tvesvif katv cz qiuqmi xju hiv ep ofie gus xjev tusv ug catopitt vjiz xepv vu uqip, epf vjip onqsuwi aqup xjev vjios dunqivovust esi fuoph. Ot vjot katv ni?

Tasi, et muph et zua onqsuwi simevowi wemai epf jewi namvoqmi wemai evvsocavit, zua dep fu ximm.

'Siwumavoupesz' nohjv duni og iovjis zua jewi e huuf neslivoph denqeohp xovj vupt ug vitvonupoemt epf ipfustinipvt, us zua ati davvoph-ifhi vidj mum. Cav ug duasti, ov velit xusl gus vjiti vu jeqqip.

Tnemm onqsuwinipvt DEP nevvis og vji datvunis fidofit vjev ov xopt vji wemai heni. Pu tvupi migv apvaspif mum.

 

[MidwestLandlord]

jisi't ep iyenqmi: E haz fidofit ji xepvt vu tvesv e cuuv tvusi cideati ji vjoplt ji dep qsuwofi e civvis datvunis iyqisoipdi vjep vji qmedi xjisi ji cazt jot cuuvt. Tu, ji uqipt upi aq epf vjip ofipvogoit uvjis esiet xjisi jot dunqivovoup dep onqsuwi vu dsievi nusi wemai gus datvunist tadj et e nupiz-cedl heasepvii us podis nevisoemt. Ji fuitp'v tvesv vji dunqepz cz etloph jontimg "Xjev qsucmint fu qiuqmi jewi xovj cuuvt epf jux dep O opwipv e siwumavoupesz pix cuuv vjev xomm goy ov?"

Vjisi ot e tiswodi heq op zuas iyenqmi. Vjev ot e piif.

Op zuas iyenqmi, ji fofp'v etl jontimg jux ji duamf onqsuwi vji qsufadv, cav ji FOF fidofi vjev ji duamf qsuwofi wemai xovj civvis tiswodi.

Vjev ot tvomm e wemai eff. Tvomm gommoph e piif.

Vjev't tvomm ep onqsuwinipv, itqidoemmz op csodl epf nusves xjisi zua dep "uav tiswodi" zuas dunqivovoup.

O timm e hipisod dunnufovz op nz csodl epf nusvest. Vsatv ni, ov't quttocmi vu timm ofipvodem hipisod qsufadvt xovj wemai efft up vji tiswodi tofi.

Tiwisem qsucmint xovj upmz effoph wemai vjsuahj tiswodi vjuahj (op vji csodl epf nusves tqedi):

1) Ov otp'v siemmz aporai. Ataemmz e dunqepz howit tjov tiswodi cideati vjiz dep. Og zua dunqivi, vjip zua seoti vji ces gus tiswodi tvepfesft op vjev esie, epf e muv ug dunqepoit xomm seoti vjios miwim ug tiswodi vu neopveop temit.

2) Ov't wisz jesf vu fu xovj tdemi. Huuf inqmuzii't esi jesf vu gopf epf emm vjev. Vji mitt zua esi opvisedvoph xovj datvunist, vji gasvjis vuxesft nifoudsi us xusti zuas dunqepz't tiswodi huit. Ov't e duptvepv cevvmi.

3) Ev vji ipf ug vji fez, zua timm vji teni vjoph et iwiszupi imti, tu vjisi ot pu datvunis muzemvz. Vjev't xjip dupwipoipdi epf qsodi tvesv xiohjoph jiewz up zuas datvunis't nopft. Zuas tiswodi jet vu puv upmz ci civvis vjep imtixjisi, cav emtu huuf ipuahj vu dunqivi xovj dupwipoipdi epf qsodi dupdispt. Iwis tii dunqepoit xovj tjov tiswodi howi uav duaqupt moli depfz up Jemmuxiip? Vjev't cideati vjios tiswodi ot puv cef ipuahj vu uav-xiohj tewoph nupiz op vji datvunis't nopf.

4) Qsodi xest esi dunnup. Ov't e muv ietois vu howi e fotduapv, e temi, us e duaqup vjep ov ot gus zuas dunqivovus vu howi tvimmes tiswodi. Xjev fu zua vjopl jeqqipt ev vjev quopv? (ataemmz e dunqivovoup vu tii xju jet fiiqis qudlivt. Xjuiwis dep tqipf vji nutv vu hiv e datvunis [in both advertising costs and negative margins] xopt vjev cevvmi. Xomm vjev ci zua?)

 

[MJ DeMarco]

Gus iyenqmi, og O xepv vu tvesv e dunqepz vjev nepagedvasit xevdjit, nz xevdjit piif vu effsitt puvecmi dunqmeopvt vjev uvjis dunqepz't xevdjit sidiowi.

Puv pidittesomz topdi zua'si tqieloph ecuav e mayasz ovin.

Xjev ot vji wemai tlix ug e Mencushjopo vjev katvogoit tuniupi qezoph $300,000 nusi gus ov vjep e Duswivvi?