Think about a time you bought a product and were disappointed in the quality. How did you feel? Did you buy from that brand again? Did you ask for a refund?
Product quality is a fine line to walk. You want your product to be high enough quality your consumer will enjoy, and desire to come back and buy more. But you don’t want it so high you price yourself out of the market.
On the flip side, you want to find ways to decrease your product costs to widen your margins so you’re profitable and have enough cash flow to scale.
Some business owners are far on each side of the spectrum. Each end limits their own growth, but the middle ground is the sweet spot for growth.
From our experience, the fastest growing businesses are those balanced perfectly in the middle.
To understand how to find that balance, let’s quickly dig into each end of the spectrum.
The Far Left: Extreme Quality
This store owner values the quality of their product over all else. So much it often holds their business back from growth. They price themselves into a niche market because their materials & process are so expensive. There’s nothing wrong being in this camp, but it’s a long journey to high-impact business growth.
The Far Right: Bigger Margins With Cheap Products
This owner is in it to grab some quick cash at the expensive of product quality and customer service. They find the cheapest materials, outsource to shitty manufacturers, and rarely have a product people truly love. The lifetime value of the buyer doesn’t extend beyond their initial purchase, and oftentimes they file chargebacks and bombard the owner with so many complaints they can’t keep their head above water so the owner defaults to ignoring them. This model has almost a zero chance of sustainable growth and long-term achievements. Momentum is almost impossible to build, and a host of other things we’ll cover later on..
The Sweet Spot: The Perfect Balance
These owners value quality of their product, but also know they need to be smart about picking ingredients/materials that aren’t too expensive. These business grow the fastest, and enjoy the benefits of a quality product that’s priced right and inspires people to come back and buy more. They feel the true compounding effect of business growth with new customers buying a product priced right, and customers coming back for more because they enjoyed their experience.
We recommend sitting in the Sweet Spot of perfect balance for faster growth. However those on the Extreme Quality side can still find success, it just tends to be a little slower. Never sit on the far right though. You can make a quick buck, but businesses will low quality products almost always bomb.
Sit either in the Perfect Balance or Extreme Quality side. You'll have a stronger, and longer run with your business.