Low-Touch, Golden-Touch

For some reasons intangible products (e.g. software) are often marketed like tangible ones (e.g. gas turbines). Same business model and also same costs: in case of an industrial software direct cost of sales hits 15.000€ per license.

Software sales cycle, can be managed in a more low-touch, low-cost way. Video presentations, webinars and canned web-trainings can avoid people travelling to the client site.

A web based meeting costs 30€. The same meeting on-site 600€. Some veterans think that a “physical” meeting is always worth the money spent. I think we should better ask the client, who pays the difference between the two.

Abbà Pater

In 1999, Pope John Paul II, launched the CD ‘Abbà Pater’ on which… he raps. In the same year an amendment to the Chinese constitution says that “Private business is an important component of the country’s socialist market economy“.

Business is like a stage where we all play roles. But instead of traditional action, we play in improvised theatres. Without a script nor a director, the audience is joining the actors, asking for leading roles.

Every role is vacant. The horror theatre is open, fantastic and frightening. As our business is driven by uncertainty and fear, what is pushing us at the speed of light?

The Final Cut

Gillette and Wilkinson keep adding more blades to razors. “Razor and blade” business model works by selling an initial “master” product at a loss (razor), while making profit with “consumables” (blades).

Gillette won a patent for its double edge razor in 1904, another for the double-blade in 1971, before the three-blades in 1998. Now Gillette sells five blades, rear blade and battery power razors. Trends indicate Gillette will ‘invent’ an eight blades razor in 2015. Because Gillette acquired Duracell, it put batteries into razors, another consumable product within the master product. Wilkinson acquired by Energizer did the same.

I’m missing the benefit of such product, as I don’t find them much comfortable. Gillette recently became supplier of Oral-B. I’m afraid they will embed a toothbrush as well in the future. What worries me more, is that Wilkinson also markets tools for Circumcision for medical suppliers…

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