In order to have a business, you must have a product or service. Hopefully, that product or service comes out of your passion or a need you see in the world. Typically, there are 4 types of products or services your business can offer. You can manipulate each of the types so that it flows with 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 they 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 want to start a business that provides a convenience product, you need to identify your blue ocean strategy. This strategy essentially locates the characteristics that set 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 only use organic coffee beans. Whatever it is, you need to set your business apart–especially if you offer a convenience product.
2. Shopping Products
In the shopping products category, consumers typically spend a lot of time comparing different options. These products are less widely available, but they typically provide better customer service or sales support. Because consumers spend so much time and effort deciding which shopping product is better, they are purchased less frequently.
Some examples of shopping products are cars, airline tickets, or furniture. As an example, if you want to buy cheap airline tickets, you will probably buy from Frontier or Spirit. However, if you want a more luxurious trip, you would buy from Delta or Southwest. There are many different routes offered by several airlines, and they each have their pros and cons. If you offer a shopping product or service, develop an excellent list of all the features it offers. Because consumers put more time into researching your product, you need to outline why they should choose yours. It should be clear, easy to navigate, and persuasive!
Related: 8 Revenue Streams That Will Maximize Your Profit Margins
3. Specialty Products
These products are usually defined by the brand that makes them. They require little to no research or comparison because consumers are already convinced of the brand’s 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 diamond ring, or designer purse. 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 can compare. 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 you have to develop brand awareness and trust.
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. Life insurance is a great example. Most people don’t think a lot about getting life insurance, but it can be extremely beneficial. If you offer an unsought product or service, you 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!
