Shipulski On Design

The CEO doesn’t decide if it’s good enough.  The VP of Marketing doesn’t decide if it’s good enough.  The VP of Engineering doesn’t decide if it’s good enough. The customer decides if it’s good enough.

If the product isn’t selling, the price may be okay, but the performance may not be good. In this case, it’s time to add some sizzle.  And who decides if the sizzle is sufficient?  You guessed it – the customer.  And if you add the sizzle and they buy more, the sizzle was the problem.  If they don’t buy more, it wasn’t the sizzle.

If the product isn’t selling, the performance may be okay, but the price may be too high.  In this case, it’s time to pull some cost out of the product and reduce the price.  Maybe a better way is to test a lower price with customers.  If they buy more, it’s worth doing the work to pull out the cost.  If they don’t buy at the lower price, the price isn’t the problem.  You still have some work to do.

If the product isn’t selling, both the performance and the price may be the problem.  It’s time to add some sizzle and lower the price.  But there’s no need to do the work until you test the hypothesis.  Make a one-page sales tool with the new sizzle and price.  If they like it, make it so.  If they don’t like it, make another sales tool with some different sizzle and a different price.  Repeat the process until the customer likes the new offering.  Then, make it so.

If the product isn’t selling, it’s possible the sales channel isn’t making enough money when they sell your product.  To test this, go on several sales calls with them.  If they are unwilling to bring you on the sales calls, it’s a good sign that there’s not enough money in it for them.  There are three ways to move forward.  Reduce the price to the channel partner.  If they sell more, you’re off to the races if, of course, there is enough margin in the product to support the reduced price.  Make it easier for them to sell your product so they spend less time and effort and make more profit.  Sell through a different channel.

When your product isn’t selling, figure out why it isn’t selling.  And because there are many possible reasons your product isn’t selling, it’s best to create a hypothesis and test it.  Your job is not to solve the problem; rather, your job is to figure out what the problem is and to decide whether it’s worth solving.

If you create a one-page sales tool with a lower price and customers still don’t want to buy it, don’t bother to design out the cost or reduce the price.  If you create a one-page sales tool with a new DVP and the customers still don’t want to buy it, don’t do the work to develop that new DVP.  If you test a reduced price to the channel and they sell a few more systems, don’t reduce the price because it’s not worth it.

Once you have objective evidence that you know what the problem is and it’s worth solving, do the work to solve it and implement the solution.  If you don’t have objective evidence that you know what the problem is, it’s not yet time to solve it.

There’s nothing worse than solving the wrong problem.  And the customer decides if the problem is worth solving.

Image credit — Geoff Henson

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