Home › Product › Principles
Products Lower Cost or Increase Revenue
Product / Principles
Every product ultimately sells one of two things to its buyer: save money or make money.
The Idea
B2B products especially — if you can't explain which number on the customer's P&L you're improving, you don't have a product. Consumer products obey a version of this: save time (cost) or create enjoyment/status (value).
Why It Matters
- Buyers justify purchases with numbers. "Nice to have" dies first in budget cuts.
- This frame sharpens positioning: are we in cost-reduction or revenue-growth?
- It forces honest measurement: can we prove the impact?
How to Apply
- State the value in the buyer's vocabulary: hours saved, conversions gained, churn reduced.
- Quantify before selling. Measurable impact sells itself.
- If neither side of the equation fits, you may be selling a vitamin, not a painkiller.
The Trap
Confusing the user's benefit with the buyer's benefit. In B2B, the person using the product and the person signing the cheque often see different numbers.
Related