Customizing a Commodity

One of the common complaints salespeople and business owners share that they don’t know how to differentiate what they sell. This is especially true if what they sell is considered a “commodity.” A commodity is something that is easily available through many different resources and is hard to differentiate its value from one source or another. Some people might consider table salt, gasoline, or water to be commodities. However, whether something is a commodity or not is usually in the eye of the beholder.

For example, most people agree that water is water is water. However, bottled water is the highest-selling commercial beverage in the United States, claiming 25% of the market. In 2017, sales were over $24 billion. It’s important to note that it’s not the water that has changed. It is the convenience, portability, the availability, the size, and variety of the containers that has transformed it from a commodity to a best-selling soft drink.

With this in mind, Rich Pavlik of Blind Bean Roasters set out to prove that coffee need not be a commodity either. While Starbucks may have had a head start on Rich, he’s taken the concept one step further. Although his own personal love of fine-tasting coffee motivated him to start his business, he also realized that there were upscale restaurants and eateries that would also like to feature a coffee that could differentiate itself from commoditized coffee. By grinding the beans himself and immersing himself in the process of the coffee business, Rich now has clients from coast-to-coast who are paying a premium price for his superior brand of coffee.

When it comes to customizing a commodity, you don’t need to change the actual product. You can change the delivery method, the convenience of receiving it, the packaging, and the accessibility. You can also make sure that it is consistently better than your competitors. In this case, it might be determined by personal taste or shelf life. The point is that when it comes to customizing a commodity, you have only your creativity and imagination to limit you. However, you’ll want to pick something that you are completely passionate about. This is not something that can be faked. If you’re an end user of the product, you will know what makes it better and worth paying more for to consumers.

“I never cared much about fitting in. I always preferred standing out.” – Eartha Kitt

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(This excerpt is taken from the seminar entitled 12 Easy Ways to Improve Any Business.) I encourage you to click here to register for the 12 Easy Ways to Improve Any Business exclusive live Zoom only seminar on Thursday, May 23, 2024, from 9:00 AM to 12:00 Noon Eastern Standard Time. 

This seminar is part of our Business Skills series. Feel free to browse the entire category for other similar topics.