There's some gold here: https://m.signalvnoise.com/bigger-prices-bigger-problems-72820249456f …
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Replying to @gsvigruha
Sometimes you must say no to make money, but in general this advice is wrong. I have a personal anecdote that falsifies it.
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Replying to @gsvigruha
Sure. I had a product that was selling pretty well and I sent a bunch of samples to larger companies. They wouldn't buy it as it was, so I said "I'll do it private label" (meaning that they could co-brand with me). They had us redesign the packaging...everything.
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Replying to @Molson_Hart @gsvigruha
We got an order for 5000 units at a very high profit margin and then a reorder at 10000 units. That was the first time that my company achieved profitability. I then shopped that exact same deal to another chain in Canada which did the same thing.https://www.youtube.com/watch?v=4P3dtJu0gJU …
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Replying to @Molson_Hart @gsvigruha
The profit from that deal allowed us to keep going...it allowed me to keep investing more in new products. Ultimately we transitioned away from these "consulting"-like deals but they were totally necessary for survival. I've read many startups do consulting to stay alive...
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Replying to @Molson_Hart
Thanks, very interesting and helpful! Yeah, what you describe sounds pretty much what we tried to do, except more successfully. It's good to know it's possible. Yeah, I've seen much more surviving consulting startup companies then product ones to be honest.
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Replying to @gsvigruha
Generalizing/productizing is very hard. I would still maintain it's harder if you have a few big clients with complex projects vs many simple ones.
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Replying to @gsvigruha
Maybe one difference is that you still served a lot of people through a few large distributors? For data analytics the consumers are a few high level managers and their KPIs.
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Good point. These projects we're highly synergystic. So, going back to the original point. Sometimes you say no, but you may want to say yes if you need cash or if there is synergy.
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