We’re going to switch tracks a little bit and shift to the area of business and marketing. Let me first say that, if you like this material and you are not yet a fan on the Mind Virus Facebook Page (www.facebook.com/mindvirus), then you should get over there and “LIKE” us. You never know – we may say something like, “Anyone who was a fan on our FB page as of ____ will get…”
OKAY…
One of the most important lessons in business is something that I’ve been screaming about since my first blog post in 2003: NEVER sell something that can be rented. When I use the term “rented,” I’m speaking figuratively. Here is what I mean: If you’ve created or have the rights to a special device that does something that no other device can do, do you sell it to people or do you “rent” it (as in charge them for the time in which they are using the device)?
A client of ours created a new kind of workout product that I cannot discuss in detail. So, for the purpose of this blog, let’s just say that it’s a medicine/workout ball – you know, the heavy balls (no, not those) that you toss back and forth as part of a workout, or that some folks will hold in their hands while working their abdominal area. Our client decided that by adding certain features to this ball, he could make it far more functional than it was, and thus – create a far better product. His goal was to create a product that could deliver a full body workout that would deliver incredible results. He succeeded. The name of the product is the BLACK BALL.
Because he is also a PRS – a Physical Restoration Specialist (as opposed to simply being a “Personal Trainer”), our client developed an innovative new workout program to complement his new workout device. He then followed the detailed instructions provided to him by Mind Virus regarding the marketing of this ball, and how to deliver the MAXIMUM financial return AND extend the shelf life of the product. In the world of fitness, a “new and exciting” product quickly goes the way of the dinosaur due to short-sightedness and lack of business know-how. This leads to a shorter shelf life and short-lived profits.
My client’s colleagues had advised him to have the ball made over in China and then create an informercial as a means of distribution (with lots of added bonuses, including the workout program). My advice was to see if the product could be manufactured in the USA, and then create a vast network of personal trainers who would utilize this new ball in conjunction with the new, and incredibly comprehensive workout routine. The cost to produce the ball in the USA was just a few cents more than it would be to produce in China (including shipping/cargo/port fees) to import the balls into the USA. Given the recent focus on jobs moving oversees, the idea of giving this product the “Made In The USA” endorsement, was very attractive AND fairly cost-effective.
To sell an item via an informercial means reducing the price of the item below its value, as well as virtually eliminating the perceived value of the workout program. By selling the Black Balls to fitness facilities (in bulk), offering training and multiple levels of certification, networking, a Certified Black Ball Trainer network, and a marketing package, my client would be creating multiple streams of income that would initiate with a commitment on the part of the facilities and trainers. Doing the math for both worst case and best case scenarios, even the lowest projections for long-term success were excellent.
If my client were to sell his device directly to the consumer, or sell the devices to trainers who would then turn around and sell the device to their clients, the end result would consist of: (1) Poor outcomes – especially due to lack of compliance on the part of the end-user, and (2) A sharp decrease in perceived-value of the device, the workout, and of course, the trainers who were certified in the Black Ball workout.
There are a lot of lessons to be learned from this example, many of which will be explored in future blog posts.
Have A GREAT Day!
…Dr. Marc