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Wednesday, 29 March 2023

[New post] What is making Säker successful?

Site logo image Chris Labs posted: " Buying a harness is part of a ritual. In most cases, people don't actually need a harness. But they are brain-washed by the industry to believe that they do. Because a harness rarely caters to a precise need, it comes down to shopping the different op" Roadmap to Billions

What is making Säker successful?

Chris Labs

Mar 29

Buying a harness is part of a ritual. In most cases, people don't actually need a harness. But they are brain-washed by the industry to believe that they do.

Because a harness rarely caters to a precise need, it comes down to shopping the different options. We could compare it with buying a watch.

Similar to buying a watch...

Most people don't need a watch, they could simply check the time on their phone. But the watch is a vehicle is to make a statement. Below are some of the reasons why people are using a watch.

- For its core function (rational)

Of course, some will get a watch and will use it for its core function (to check the time). Those people will go ahead and buy a standard option that fulfills that function. They won't over pay for it.

They are not our target demographic. A harness core function is to help alleviate some of the tension caused by pulling. Almost any harness will do such thing.

Impact on Price: As almost any harnesses will do such thing, the harnesses will be compared on price mostly. This means that these harnesses will sell very close to what they cost to make... Chinese manufacturers, big retailers, they can all offer a harness that performs its core function.

- For the extra functions (rational)

Other people will get a watch for the extra functions performed by the watch. This is the foundation of GPS watches, Smart watches, Apple watches, etc.

If a customer wants a watch that will just show the time and counts their steps, they will get a pretty basic smart watch. Any smart watch on Amazon could perform such function.

But as the customer wants more functions performed by their watch, the complexity of the product increases. For example, an Apple watch will allow them to count their steps. But it will also offer GPS services. It could also allow them to make phone calls, read their SMS, etc.

As more functions are layered on top of the core function, the product gets harder and harder to make. Therefore, fewer and fewer manufacturers are able to offer such products.

Impact on Price: As more functions are performed by the same watch, the price can start to move away from what it costs to make. Not in a crazy way though. If a harness offers the ability to let your dog carry some stuff (Dog pack), the price can slightly move away from what it costs to make. Now, when that harness also offers the functions of a Rescue harness and a crash-tested harness, it differentiates itself from the competition allowing the price to move further away from its cost.

- For the status (emotional)

Status is the hardest to achieve, because it is out of the brand's control. It is all about signaling and perceptions. Let's take our watches again.

A Fitbit, which performs a bunch of smart watches functions, will sell for $399.

An Apple Watch, which performs all the same tasks as the Fitbit, will sell for $529.

Why?

Because Status comes into play. Apple is more prestigious than Fitbit which allows them to charge a $130 premium for basically the same product.

Now let's take a Rolex... This watch will perform none of the extra functions mentioned above. It only performs the core function of giving you the time. Yet, the cheapest Rolex will go for $5000.

That's a 10X multiple on the Apple watch.

It's all about signaling. Customers perceive that a certain product will help them signal a certain message to the world. They are using their watch as a vehicle to signal their status to the world.

A Rolex will signal that they have money and that they are successful.

An Apple Watch will signal that they buy the real thing, they have achieved a certain comfort in life and they will not settle for the no-name option.

Impact on Price: There is no rational thoughts behind status, it's all about perceptions. Buying an item for the signals it will send to the outside world is purely emotional. For that reason, and because this is outside of the brand's control, the price is no longer in a relationship with the cost anymore.

Back to our harness

There is no point in competing on the core function as this is solely related to price. We can't win this margin fight with chinese manufacturers and big retailers.

While we could try to fight on the extra functions, which we have mostly done so far, this has an expiration date. At some point, other players will catch up and offer similar products.

We have to use those extra functions to gain momentum and attention. Every dime and minute should be reinvested into building the signaling and status of our products.

Become a status product

I'll try to outline ways for our gear to become a vehicle for status.

1. Gotta look cool

Dog owners are currently paying a premium for the extra functions of the Ascension and because the harness looks cool. But we have to capitalize on that second point.

In my belief, people are using the extra functions of the harness to rationalize their purchase. The crash-test function and rescue function are excuses for the customer to purchase the gear.

This last point is the whole foundation of Rexspecs. Are people buying their dog a pair of goggles because they feel the need to protect their dog's eyes? I mean how many dogs have suffered eye injuries from not wearing goggles? Very few I'm sure...

So people are telling themselves they are doing it for protection while in reality, most of them are doing it for the style.

Now that we concluded that a major reason for people buying our harness is to look cool, we have to make sure we are the best at that.

The twisting, which we would previously dismiss as a consequence of freedom of movement should be solved so that the harness looks cool at all times. If someone takes a picture of the Ascension, it should look perfect.

People will wear sunglasses inside or will rock a mullet because when they like what they see when they look in the mirror. We have to make sure that when they are sitting at the dog park looking at their dog running around, they think their dog is so cool.

It seems like one potential way to achieve cool in the eyes of the customer is to let them build their setup. By having build their harness according to their needs, they have a sense of appropriation. Their dog's style is now a result of their own making.

Another point is that you cannot try hard to be cool.

You have to do cool shit for the sake of it. Most customers will respect that. And their BS detector will spot it instantly if you are doing things just to look cool.

2. Be a clear status signal

Rolex and Yeti are sending a clear signal: "I am successful".

Patagonia is all about: "I care for my Planet, regardless of the price".

For a signal to be powerful, it cannot be unanimous. For Patagonia as an example, most people would agree that saving our Planet is important... But would everyone agree to pay 300$ for a sweater for it?

People should read what you're about and decide right away if they're in or out.

Shooting ideas of what we could be about:

  • Dog Safety at all costs...
  • Quality at all costs...

3. Become the standard for a niche

There's merit to appeal to a minority. When you convert a minority into super fans, outsiders will see it and will try to be part of it. There's a bunch of example of that.

By focusing solely on runners, the Ciele hats have become a reference for runners. Outsiders looking at runners thought those hats looked so cool that they started wearing them. Now, the hats are worn by a bunch of non-runners even thought they are marketed for runners.

The Quebec clothing brand Hooke focused on fishermen, but eventually, non-fishermen thought the gear looked cool and started wearing it too.

Probably the most famous example of that is the brand On Running. They have targeted solely runners. Yet, now all types of people are rocking their shoes.

  • Associate yourself with a celebrity. Ex: The Rock tequila, etc.
  • Endorsement... But who? Who's regarded as a start in dog owners world.

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at March 29, 2023
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