The Science of Product Creation

We can all agree that today attention is driven by value, who can provide the most, gets all the attention.

So how can you provide the most value?

With Products (obviously).

Products are in essence something that you provide as a service, solution or a tool in exchange for money (or something else, it’s none of my business 👀).

Look around, how many products do you see around you? How many you don’t even notice ? Like social media itself.

Look at tiktok for example, the first few years it was only a platform for entertainment, no ads, no sales, no nothing, only fun videos (and people doing weird dancing videos).

Now? They provided you with value and you trust them as an authority, what did they do? Tiktok ads.

And they’re making millions with it

EVERYTHING is a product (even if it’s free).

Three types of products

Low ticket:

These are affordable, entry-level products, offering excellent value for the price and are often impulse purchases i.e books, basic digital templates or small accessories.

Mid-ticket:

Here’s where you strike the balance between quality and price, catering to customers seeking more substantial investment, without breaking the bank i.e online courses with comprehensive content, quality products like mid-range phones.

High-ticket:

Premium, there’s no better way to describe them, luxurious and high-end item. Designed for discerning buyers, who prioritize quality features and exclusivity i.e Luxury items, customized designer clothing.

Where Do They Fit?

The products are ‘almost’ never the solution in it of itself, what products do is they help the buyer accomplish the key task that’s gonna take him to the desired outcome.

Present the solution and then showcase the sports car (your product) that’s gonna take them there as fast and comfortably as possible.

If you played video games, look at it like a fast-travel.

Identity & Status

Products can not only provide value but also identity and status for the customer, this is usually the case with high-ticket products. What’s the difference between luxurious fashion clothing, watches, cars and normal clothing, watches and cars? They solve the same problem.

But people buy for identity and status i.e Rolex, Gucci, Balenziaga, Lamborghini, nobody ever bought one of those cause they wanted to know the time, feel warm and go to work.

The Value Ladder

Is the implementation of the product types into a product line, it helps brands increase the value they provide over time, increasing the perceived value, trust and authority of the brand through the customer lifetime.

1. Traffic

   Free value through social media, teasing the value you provide on other steps of the ladder, educating leads on the problem, solution and your unique selling proposition (USP).

2. Lead magnet

   Here’s where you exchange value for the lead contact information (phone, email…), so that you can later convert them into customers.

3. Low-ticket 

4. Mid-ticket

5. High-ticket

What Makes Them Buy?

People buy based on one simple thing:

• Value > Price

You don’t need to have the lower price, you need to provide the most value. Show them that the best return on the dollar is with you.

Don’t be the one to provide more for less or compete on price (it’s a race to the bottom!).

How Value Is Perceived?

• Dream Outcome: What the customer wants

• Perceived Likelihood Of Achievement: What’s the chance they’ll achieve the dream outcome with your product?

• Time Delay: How long will it take?

• Effort & Sacrifice: How much effort they need to put in with the product to achieve it? How much will they need to sacrifice?

• Value: How much they’re willing to pay.

Sale to Fulfillment Spectrum

If it’s easy to sell, it’s hard to fulfill, if it is hard to sell it is easy to fulfill

That’s why I started with a high-ticket service to earn my first $1 online, it’s harder to sell, but easier to fulfill, until I gained enough experience to scale it.

Your product isn’t making money for two reasons:

1. Low margin.

2. Low value.

Here’s two questions that guide me when dealing with these.

• If you demanded 10x the price, what would you need to provide to justify the price?

• If you could only charge 1/10 of the price, how would you package your product?

Once you know the problem and solution better than those who suffer from it, you’re ready to attract their attention. How?

Marketing Systems

And that’s a topic I’ll go deeper later.

A great week’s ahead of us, make the most out of it.

- Fred S.