How to know when your customers are lumping your business in with everyone else in the market.
In his article "How to Escape the Commodity Trap," Mark Coudray details how and why things become commodities, and how to prevent your business from becoming commoditized. Here, he discusses signs that your business has already become one.
It happens to every business, in a cycle that’s taking place more rapidly now than ever before. I’m talking about being commoditized, when buyers lump your company in with every other player or poser in your market. Customers don’t know any different, and that’s the problem.
10 Signs You’ve Been Commoditized
1. The market is driven by the lowest price.
2. The market sets the price.
3. Prospects have instant search access to competitive alternatives.
4. There is increasing geographic competition.
5. Production capacity and availability are exchangeable.
6. Supply chain is exchangeable.
7. Quality characteristics are exchangeable.
8. Service, deliverability, and convenience are exchangeable.
9. Financial terms are exchangeable.
10. New competitors are constantly showing up.
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