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Commodity Products
Product / Concepts
Products where buyers can't tell one supplier from another, so price wins.
What It Means
A commodity is anything interchangeable: flour, electricity, cloud storage. Once customers see no meaningful difference, the only lever left is price. Margins collapse.
Why It Matters
- Most product categories commoditise over time as competitors copy features.
- Competing on price is a losing game unless you have a structural cost advantage.
- Escaping commodity status requires differentiation that buyers actually value.
Ways to Escape
- Brand. Starbucks is coffee plus a feeling.
- Bundling. Combine the commodity with services or integrations.
- Experience. Make the purchase or use dramatically easier.
- Narrow positioning. Serve a specific audience better than generalists.
The Trap
Thinking your product is special when customers already treat it as a commodity. Listen to how buyers compare options — if they lead with price, you're commoditised.
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