Category: strategy

Taking premium to a new level

Posted on by Steve Sammartino

Don’t think that pricing is just a decision – it’s very often an entire strategy where in fact it becomes the products most redeeming feature.

 

An espresso in Harveys Range Heritage Tea Rooms will set you back $50. (not a misprint)

 

 

The exclusive brew is Kopi Luwak, and is said to be the most expensive drink in the world by volume.

 

The locals call it cat poo coffee, and here’s why: A cat like creature in Indonesia called a Luwak eats the coffee cherries when ripe and then manages to pass the bean without digesting it. These beans then are gathered and used to make Kopi luwak espresso – Yum!

 

You can read more here.

 

What I love is how ‘the story’ invents pricing which is 16 times the average. 

Don’t do this (update)

Posted on by Steve Sammartino

Hang the shingle out and wait.

 

 

Guess what, they won’t come and the phone won’t ring. The same is true for your website – even more so. You won’t exist. Netcraft says there are currently over 109 million websites which compile over 30 billion pages. At least with retail there’s a chance people will walk past!

 

Start up advice is this: People don’t know and people don’t care unless you make it so.

Business plans

Posted on by Steve Sammartino

For those of us not raising Angle or Venture Capital, our business plans should be directly proportional to the size of our business.

 

No revenue = no plan.

(ok – a small mud map that focuses on the very basic business model which will lead to revenue.)

 

<$1 million revenue  = 1 page.

 

The law of diminishing returns sets in at around about 10 pages, regardless of the size of the business. 

Cool brands

Posted on by Steve Sammartino

Cool brands are put simply, just like cool people. It’s not so hard to believe when we consider that brands (well known ones) have personalities. Brands have values, share ideas and represent something.

Brands are just like people, the personification of things or services.

So what makes a cool brand? The same stuff that makes a cool person.

Cool people:

·        Cut new ground

·        Dress how they want

·        Don’t care about being popular, which is why they ‘become’ popular

·        Do stuff they like, not what others like

·        Have strong opinions and values, don’t care what others think

·        Don’t try and impress – so they do

·        Are confident and relaxed

·        Aren’t selfish, mean or vindictive

·        Are often compassionate and kind

·        Are easy to get along with (easy to use?)

·        Take a while to be understood

·        Get discovered eventually as being – thought leaders

·        Cool in a crisis

             fonzie.jpg 

Hey, there’s plenty more personifications where these came from – so be

like Arthur Fonzerelli and add them to the comments.

Fun parks and CBD’s

Posted on by Steve Sammartino

In reality there are two ways we can define websites. They’re either Fun Parks or Central Business Districts.

Startup blog definitions: 

Fun park: A website which is primarily in existence for the entertainment of its users. A place to enjoy, socialize, have fun and waste time.

Central Business District (CBD): A website which has a commercial function from it’s inception and is essentially there to assist people in trade.

Examples of each include:

Fun parks CBD’s

Youtube

Ebay

Facebook

Paypal

Flickr

Amazon

Hot or not

Lulu

Sure, there’s some overlap, but it’s the insights behind the two variants that matter.

roller-coaster.gif   businessman-drawing.jpg

Fun parks are ‘fun’. They’re easy to use and addictive in nature. They tend to spread quicker and go viral because there’s less risk. We’re not being asked to spend money, just enjoy the rides. So the fun park fills up quickly, gets popular and the owners monetize them by selling advertising billboards to all the eyeballs in the fun park. Eventually the park becomes overcrowded and people start to leave. They tend to have a rotating user base.

CBD’s are useful. Sometimes fun, but usually more serious and offer ‘value’. The commercial function is built in to the site, hence it doesn’t need to ‘monetize’ itself. People tend to investigate more, take longer to put their name down and join site. But once the do, they often become evanaglists and do the marketing for the site. They build more slowly, maybe take years, but usually end up with a more loyal user base. And rightfully end up more profitable. (profit as defined by yield)

Both are valid, both are evolving. If you’re a start up, it just pays to know which category you fit into.

Some stuff all web startups should know

Posted on by Steve Sammartino

I’ve just read the following book. 50 great e-Businesses and the minds behind them. By Emily Ross and Angus Holland. It includes all our favourites over the past 10 years. Put simply it’s insightful.

 50-great-e-businesses.jpg

I really think you should read it, but if you’re time poor like most entrepreneurs here’s my bullet point summary for you:

  • More than 80% of these businesses were founded and run by non-technical people (web designers / coders etc)
  • Only a handful actually went viral and had overnight success
  • ‘Fun parks’ build traffic & members quicker than ‘real commercial sites’ (see next blog entry)
  • The majority did not have VC funding, fancy offices, or even staff. They bootstrapped.
  • Most took much longer than 2 years to build
  • The most unexpected and common thing that drove success was cold calling & collaboration 
  • The entrepreneurs behind them we’re driven by the idea, belief and excitement – not only the potential for big money.

Worth a read.