The 4 elements of a winning product


These are the 4 elements:
  1. It needs to solve a problem.
  2. It needs to be price and packaged as part of an ecosystem. Don't solve a problem and then create another.
  3. It needs to be profitable PROFIT = Volume x Margin.
  4. It must have a tangible outcome that will be associated with you. Create the anchor so that they remember you.

Apple is a prime example:
  • it solves more than one problem;
  • it provides a variety of complimentary products and services offering a one-stop-shop solution;
  • it has a high-volume and a high-margin: an iPhone costs $50 to produce and distribute, yet millions of people across the world pay up to $1000 to get one in their pocket. Apple also offers products like iTunes that have a ridiculous margin due to the low cost of distribution;
  • it created a unique brand recognition becoming a leader on the market of personal computers and portable music devices.
On the opposite end of the spectrum is a low-volume, low-margin product. We call this an 'ugly' business model because you're producing very little and your margin is too small. A business cannot survive if it's relying on a low-volume, low-margin product. This is not a scalable model, so you need to avoid products that fall into this category.
Most of your products will probably fall into the other two boxes. High-volume, low-margin products are a good way to increase your brand awareness and offer an entry point for prospects to engage with your business.
High-margin, low-volume products are the big ticket products that your best clients will purchase. These are typically the products that make the most money, so this should be the core product that you want prospects to end up purchasing after they've purchased your low-cost product.
(based on an article by Mike Clark http://www.keypersonofinfluence.com/4-elements-of-winning-product/ )