Customer Wants vs What They’re Willing to Pay For | Kimberly Lewis | CurlMix
Honest Ecommerce · with Kimberly Lewis · September 3, 2019 · 31 min
Summary
CurlMix dramatically scaled sales by pivoting from DIY boxes to a "done-for-you" product line based on customer data. The co-founder, Kimberly Lewis, emphasizes understanding what customers are truly willing to pay for, even if it differs from what they initially express wanting. This episode provides a clear example of using early product iterations for market research to inform a more successful, scalable business model.
Key takeaways
Leverage data from early product failures or iterations to identify actual customer preferences and willingness to pay, rather than perceived wants.
Pivot from a "do-it-yourself" model to a "done-for-you" solution if convenience and time-saving are significant unmet customer needs, even for existing customers.
Optimize product margins by analyzing industry benchmarks; if current margins are significantly lower, re-evaluate your product offering and business model for better profitability.
Don't be afraid to change your business model entirely based on customer feedback and market analysis, even if it means discontinuing an existing product line.
A product that solves a specific pain point (like time-consuming DIY) can command a premium price and lead to higher margins, even if "copycats" eventually emerge.
Kimberly Lewis, co-founder of CurlMix, took her company’s sales from zero to one million dollars in just a year. But before CurlMix’s success, Lewis and her co-founder, her husband Tim, had already failed at one business--and they were struggling to make their new business, CurlMix, sustainable. So, they changed tactics, did the research and decided to design the business entirely around what the customers really wanted. And, it worked. Last year, CurlMix was featured on Shark Tank, where they boldly turned down Robert Herjavec’s offer. Spoiler alert: Lewis says that the controversial decision was the best thing they’ve done for their business yet. CurlMix is projected to reach $10 million in sales this year! To learn more, visit: http://honestecommerce.co Resources: Learn more at curlmix.com Instagram: @kimandtimlewis Facebook: facebook.com/curlmix
Leverage data from early product failures or iterations to identify actual customer preferences and willingness to pay, rather than perceived wants.
What does this episode say about product & merchandising?
Pivot from a "do-it-yourself" model to a "done-for-you" solution if convenience and time-saving are significant unmet customer needs, even for existing customers.
What does this episode say about founder & leadership?
Optimize product margins by analyzing industry benchmarks; if current margins are significantly lower, re-evaluate your product offering and business model for better profitability.
What does this episode say about dtc strategy?
Don't be afraid to change your business model entirely based on customer feedback and market analysis, even if it means discontinuing an existing product line.
What does this episode say about dtc strategy?
A product that solves a specific pain point (like time-consuming DIY) can command a premium price and lead to higher margins, even if "copycats" eventually emerge.
