01 Jul 4 Types of Products or Services Your Business Can Offer
In order to have a business, you have to have a product or service. Hopefully, that product or service comes out of a passion you have or a need you see in the world. Typically, there are 4 types of products or services your business can offer, and you can mold each one of them to match your business idea.
4 Types of Consumer Products or Services
1. Convenience Products
These are the types of products that consumers buy repeatedly. They are items people need regularly, and are usually low priced and widely available. Most people don’t think too hard about buying a convenience product.
Some examples would be soap, coffee, or magazines. If you were wanting to start a business and provide a convenience product, you would need to identify your blue ocean strategy. What sets your product apart? Why would someone pick your brand of coffee over the other companies? Maybe you offer quality coffee at a lower price, or you use only organic coffee beans. Whatever it is, you need to set your business apart especially if you are offering a convenience product.
2. Shopping Products
Consumers typically spend more time comparing the different options in the shopping products category. They are less widely available, but typically provide better customer service or sales support. Because consumers spend so much time and effort deciding which shopping product is better, they are less frequently purchased.
Some examples of shopping products are cars, airline tickets, or furniture. As an example, if you want to buy cheap airline tickets, you will buy from Frontier or Spirit. However, if you want a more luxurious trip, you would buy from American, United, or Southwest. There are many different routes offered by several airlines, but they each offer different pros and cons. If you are offering a shopping product, you want to develop an excellent list of all the features. Because consumers are putting more time into researching your product, you need to outline why they should choose yours; it should be clear, easy to navigate, and persuasive!
3. Specialty Products
These products are usually defined by the brand that makes them. They require little to no research or comparison by consumers because they are already convinced of the value. It may take more effort to secure one of these products because they are even less readily available, which is part of their draw.
Some examples of a specialty product would be a luxury car, a Macbook, or designer purses. If you are ready to purchase a Lamborghini, you’re not comparing it to other cars. You are set on the exact car you want because of it’s value, and there are hardly any cars that compare to a Lamborghini. When I’m shopping with my wife, she knows what purse she wants because of the designer that makes it. She doesn’t have to spend time comparing the prices or the material. If you are going to offer a specialty product, you better make it special. It takes a long time to get into this category because consumers need to trust and desire your brand.
4. Unsought Products
Consumers typically don’t seek out these products because they don’t know they need them. There is little product or brand awareness, and it’s not something they typically buy.
For example, life insurance, Most people don’t think a lot about getting life insurance, but it can be beneficial. If you are going to be offering an unsought product or service, you will need a robust marketing scheme. You have to convince people that they need your product or service. You also have to get out in front of consumers. They can’t buy what they don’t know about!
I hope this post has helped you classify the product or service you want to offer. If you want to learn more about starting or running an effective business, then you need to be at my brand new Business Mastery Workshop! It will be September 13-15, 2019 in Denver, Colorado. We have the best line up of speakers to ensure your business launches to success! Click here for more information and to purchase tickets! We are running an Early Bird Special right now, so be sure to enter the coupon code “EB2019” at checkout for a discount!