How To Decommoditize Any Product or Service

How To Decommoditize Any Product or Service image COMPETE 300x3002Word on black buttonMany of today’s companies are competing on price and have razor thin margins on their products. As a result, they’ve commoditized their product and have to rely on high volumes to make money.

Fortunately, even though it’s a tough world out there, you can decommoditize your commodities.

In fact, you can decommoditize every product and every service. Skeptical? Here’s an example.

A number of years ago I was working with Cadbury Schweppes. Some of their product lines are 7-Up and Dr. Pepper. They asked me, “How do you decommoditize a carbonated soft drink?

They went on to explain that all carbonated soft drink sales have been declining by about 2% a year, consistently, as we drink other things. Like Coke, Pepsi, and all the others, Cadbury Schweppes was not very happy because of those slowly declining sales and thin margins.  So I said, “Let’s take one of your popular products, 7-Up, and decommoditize it.” (more…)

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