We need to determine how much of an exchange customers are willing to give you. A great way to think about this is whether your value is candy, vitamin or medicine.
Candy is like a treat. It’s something we buy ourselves from time-to-time. We know it’s not good for us in large quantities, but hey, I don’t mind spending a few dollars here and there on them! Chico’s are my favourite.
Vitamins are a preventative strategy. We know we ‘should’ be taking certain vitamins every day but if we miss a day or have other priorities then it’s not a huge deal, we’ll get back on them soon.
Medicine, on the other hand, is critical instant relief from severe pain and death. If you do not take anti-venom after a snake bite, you will likely die.
We can get into the philosophical discussion about the importance of vitamins over medicine as vitamins may prevent what medicine is needed to fix, however, we live in a world of short termism and it’s indisputable health, environment and other societal issues ‘should’ be higher on people’s priority and value list. For that to occur, the problem needs to become ‘medicine’.
Reflect on your opportunity. Is it candy, vitamin or medicine? Add a dollar value to the exchange.
If you considered it to fit in the vitamin category, are you really sure it’s vitamin and not candy? While you believe people ‘should’ be solving a particular problem with a particular solution if they aren’t motivated to invest time and money in a long term preventative strategy then it’s likely you have candy on your hands. If you considered your opportunity to be medicine, are you sure it’s not a vitamin in disguise? It’s not about what you believe it to be, it’s about the objective reality of the market.
The good news is, if your opportunity is candy or vitamin there’s one simple question that helps transform your business model to a stronger position: HOW can you shift your opportunity from candy or vitamin up to medicine.