4 ms·

I really wonder how "durable" all these consumer product startups are. You're competing in a commodity market against companies like Procter Gamble/Johnson & Jo

I really wonder how "durable" all these consumer product startups are. You're competing in a commodity market against companies like Procter Gamble/Johnson & Johnson whose scale is untouchable, where essentially your only value added is customer service. Once the marketing hype for your product dies off, and it's no longer a meme, how do you compete against the dozens of Chinese clones?

magic_beans 8y ago
If the CEO is pocketing even some of that 1.1M in revenue, he'll be alright. I highly doubt he expects his company to last a lifetime.
- deleted 8y ago
  [deleted]
conductr 8y ago
It's not a commodity, it's fashion. Branding is important and has value to consumers. It may seem irrational to you, but they will pay a premium. See YETI. That said, just like clothes, the products will need to evolve or expand if the company is to see long term success.
duxup 8y ago
I was wondering the same thing, but if they can get their brand name established ... might help. Also maybe you can sell out to the big guys.
CryoLogic 8y ago
Been and Jerry's is an example of a company with organic growth and great success in a crowded industry
- repnation 8y ago
  Ben and Jerry's is owned by Unilever, one of the largest FMCG companies in the world
  - ryanwaggoner 8y ago
    But that’s relatively recent; they were a successful brand before being acquired.
  - CryoLogic 8y ago
    Yes. But that's not how they started: https://en.wikipedia.org/wiki/Ben_%26_Jerry%27s#History https://en.wikipedia.org/wiki/Ben_%26_Jerry%27s#History They sold to Unilever in 2000, after 20 years in business.
STRiDEX 8y ago
One experience, I'll still buy klean kanteen aluminum water bottles because they were a local business and the competition are all worse in some distinct way. Leaks, dents, whatever. Hydro Flask is somewhat close. I'm not sure why the cheap nock offs target the trash level of cheap instead of the actually okay level.
LyndsySimon 8y ago
You can build a business on a single product, but you can't sustain one. Consider Magpul[0]. They built their company selling a what basically amounts to a thick rubber band with an extra loop on one side[1]. Over the course of the following seven years, they landed defense contracts and made enough profit on that little doodad to design and manufacture the PMAG[2], which is their best-known product now - and I strongly suspect, their primary profit driver. They've sold absurd numbers of PMAGs over the years. After that, they were a well-known name in their target demographic, and were able to parlay that into a line of "furniture" for ARs - stocks, hand guards, grips, etc. These days they sell everything from rifle magazines and accessories to wallets and iPhone cases. They come to mind immediately for me because I saw yesterday that they'd launched a line of safety glasses[3]... that start at ~$150. Magpul's product line is the very definition of "durable goods", but they've managed to build a thriving business around them. The keys to that as best I can tell are: never stop building your brand, and never stop researching and releasing new products. 0: https://en.wikipedia.org/wiki/Magpul_Industries https://en.wikipedia.org/wiki/Magpul_Industries 1: https://gunxtras.com/image/cache/data/MAGPUL-Original-Magpul-556-NATO-3-Pack-Black-MAG001-BLK%20(3)-500x500.jpg https://gunxtras.com/image/cache/data/MAGPUL-Original-Magpul... 2: https://www.magpul.com/products/pmag-30-ar-m4-gen-m3 https://www.magpul.com/products/pmag-30-ar-m4-gen-m3

magic_beans 8y ago

If the CEO is pocketing even some of that 1.1M in revenue, he'll be alright. I highly doubt he expects his company to last a lifetime.

deleted 8y ago
[deleted]

conductr 8y ago

It's not a commodity, it's fashion. Branding is important and has value to consumers. It may seem irrational to you, but they will pay a premium. See YETI. That said, just like clothes, the products will need to evolve or expand if the company is to see long term success.

duxup 8y ago

I was wondering the same thing, but if they can get their brand name established ... might help. Also maybe you can sell out to the big guys.

CryoLogic 8y ago

Been and Jerry's is an example of a company with organic growth and great success in a crowded industry

repnation 8y ago
Ben and Jerry's is owned by Unilever, one of the largest FMCG companies in the world
- ryanwaggoner 8y ago
  But that’s relatively recent; they were a successful brand before being acquired.
- CryoLogic 8y ago
  Yes. But that's not how they started: https://en.wikipedia.org/wiki/Ben_%26_Jerry%27s#History https://en.wikipedia.org/wiki/Ben_%26_Jerry%27s#History They sold to Unilever in 2000, after 20 years in business.

STRiDEX 8y ago

One experience, I'll still buy klean kanteen aluminum water bottles because they were a local business and the competition are all worse in some distinct way. Leaks, dents, whatever. Hydro Flask is somewhat close. I'm not sure why the cheap nock offs target the trash level of cheap instead of the actually okay level.

LyndsySimon 8y ago

You can build a business on a single product, but you can't sustain one. Consider Magpul[0]. They built their company selling a what basically amounts to a thick rubber band with an extra loop on one side[1]. Over the course of the following seven years, they landed defense contracts and made enough profit on that little doodad to design and manufacture the PMAG[2], which is their best-known product now - and I strongly suspect, their primary profit driver. They've sold absurd numbers of PMAGs over the years. After that, they were a well-known name in their target demographic, and were able to parlay that into a line of "furniture" for ARs - stocks, hand guards, grips, etc. These days they sell everything from rifle magazines and accessories to wallets and iPhone cases. They come to mind immediately for me because I saw yesterday that they'd launched a line of safety glasses[3]... that start at ~$150. Magpul's product line is the very definition of "durable goods", but they've managed to build a thriving business around them. The keys to that as best I can tell are: never stop building your brand, and never stop researching and releasing new products. 0: https://en.wikipedia.org/wiki/Magpul_Industries https://en.wikipedia.org/wiki/Magpul_Industries 1: https://gunxtras.com/image/cache/data/MAGPUL-Original-Magpul-556-NATO-3-Pack-Black-MAG001-BLK%20(3)-500x500.jpg https://gunxtras.com/image/cache/data/MAGPUL-Original-Magpul... 2: https://www.magpul.com/products/pmag-30-ar-m4-gen-m3 https://www.magpul.com/products/pmag-30-ar-m4-gen-m3