4 Products STEP FOUR: The Wings Flashcards
What is the primary purpose of Step Four in the Product Optimization Playbook?
To optimize your product offering for demand and profitability.
What are some problems that Step Four aims to solve?
- Uncertainty about which products are most profitable
- Need for new products to increase profitability
- Product offerings becoming boring to customers
- Wasted time on unsuccessful product launches
- Need for quick cash flow
- Lack of upselling processes for existing customers.
What analogy is used to describe the importance of products in a business?
Products are compared to the wings of an airplane, essential for lift and success.
What happens when products are not in demand and profitable?
It creates drag on the business, similar to having too small wings on an airplane.
What is the key question to ask for optimizing product offerings?
How can I work just as hard and generate two, five, or even ten times the revenue?
How can a dance studio increase revenue without opening a new location?
By offering corporate dance lessons for team-building at a higher price point.
What innovative product did a wedding planner create to scale her business?
Plan Your Own Wedding, a service providing a checklist and weekly cohort meetings for couples.
What is one strategy for optimizing product offerings mentioned in the text?
Providing concierge services for more focused attention.
What are the three exercises to optimize a product offering?
- Rate products for profit
- Conduct a product brainstorm for new offerings
- Use a product brief for new product ideas.
What is the first exercise to optimize product offerings?
Rate your products for profitability.
What should you list in the first exercise for product profitability?
Every product you sell, ranked by profitability.
What should be considered when ranking products for profitability?
- Raw material costs
- Labor costs related to the product
- Effects of expiring inventory.
What is the goal of ranking products for profitability?
To understand where your money is coming from and where to focus marketing efforts.
True or False: Selling unprofitable products is beneficial for a business.
False.
What should businesses consider about marketing and sales efforts?
They should reflect the profitability ranking of products.
What is the suggested approach if a business has not saturated the market?
Focus on selling more of the high-profit products already being sold.
What is a potential strategy for increasing sales of a specific product?
Create prominent displays and promote the product through marketing channels.
What is a common issue businesses face regarding underperforming products?
Difficulty letting go of products that are not profitable.
What type of products are sometimes kept despite low profitability?
Loss leaders that drive traffic to purchase more profitable items.
What should businesses consider letting go of to improve profitability?
Products that aren’t selling or not bringing a profit.
This includes those that take up mental and financial energy.
What is the famous phrase in storytelling that applies to business regarding product offerings?
Kill your darlings.
This phrase suggests that one should let go of beloved but non-productive elements.
What is the first step in optimizing product offerings?
Rank your products and assign resources to those that are already working.
What should businesses focus on when dreaming up a new product?
Providing the most value to the customer.
List the six categories of profitable products.
- Making Money
- Saving Money
- Reducing Frustrations
- Gaining Status
- Creating Connection
- Offering Simplicity
What is a subscription model?
A product offering that involves regular delivery of goods or services on a set schedule.
How can certifications create profitable revenue?
By duplicating expertise into a certification that can be leveraged into a business.
What is the benefit of creating package deals for customers?
They solve specific problems for customers in a single purchase.
What is a product brief?
A process to vet ideas before launching a product or service.
Why is it important to fill out a product brief?
To analyze potential impacts on existing revenue streams, customer confusion, and profitability.
True or False: Product briefs are only necessary for large businesses.
False.
They are beneficial for small businesses as well.
What can result from failing to use product briefs?
Bad products hitting the market and potential business frustration.
What analogy is used to explain the purpose of product briefs?
Testing wing designs in wind tunnels before installing them on an airplane.
How can product briefs be utilized beyond product development?
For new marketing initiatives.
What are the three actions to optimize product offerings?
- Rank products for profitability
- Introduce new profitable products
- Install a product brief process
Fill in the blank: The Product Profitability Audit and the _______ are tools for assessing new product initiatives.
Product Brief Worksheet
What can happen if a business owner is too spontaneous and inconsistent?
They may alienate their team and limit business growth.
