Both my business buddy & I had some bad news on our costs today, and for me this is a moment when I realise that even bad news can have a positive effect.
I had made some assumptions about my cost structure based on Internet searches, so when I finally got round to talking to one of the main suppliers in the UK today he said I couldn't reach that level of pricing. I could of course source supply from outside of the UK, but he pointed out that this would not stand up to the quality that I require for my idea. So it looks like my cost structure is now THREE times higher than I expected.
Now, this is the bit where I recognise I have changed through this whole process...
If I had heard that news 18 months ago when I was first researching this idea, I think I would have shut up shop and forgot about this idea. But now, I think to myself how can I overcome this obstacle; how can this make my idea better; etc...
And the funny thing is, I think it has made it better. I've now had the jolt for me to revisit the actual size & packaging of my idea. I'm coming round to the idea to re-package my idea into a "bundles" set up, where you can buy smaller denominations of my product depending upon your need rather than the one size fits all package I had previously tried to create. This means I can keep the per unit price at a great headline price, and flex the appeal of my idea to a wider number of users, rather than just the average.
And its the same for my buddy... he doesn't see his increased costs as a big issue - its just means he needs to be a bit more creative in his pricing, and possibly means he needs to position his product in a more premium sector with more premium appeal.
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