20/7/2018

SMART COMPANIES TRY TO COMMODITIZE THEIR PRODUCTS COMPLEMENTS

Joel Sposky quoted in the paper // Commmoditize your complement

All else being equal, demand for a product increases when the prices of its complements decrease.

…In general, a company’s strategic interest is going to be to get the price of their complements as low as possible. The lowest theoretically sustainable price would be the commodity price - the price that arises when you have a bunch of competitors offering indistinguishable goods.

So: Smart companies try to commoditize their products’ complements. If you can do this, demand for your product will increase and you will be able to charge more and make more.


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