There is no perfect spouse ... or product


#1

When I was going around asking feedback for PureMetrics, one of the way I would position my product is by saying that all other products are incomplete/imperfect. With one of the folks I had an interesting conversation.

He: Are you married
Me: Yes
He: Is your wife perfect? or are you perfect?
Me: No
He: Products are the same, they will never be a perfect product or a spouse. More importantly people will use the most popular good enough product because it is good enough.

That conversations changed the course of my startup, we decided to pivot to do something more than just a pure analytics product.


#2

For PureMetrics your differentiating factor was - "other products are incomplete/imperfect"
For us, the factor is - "Pricing"
Both these factors are not enough for a startup to survive long.

Can anybody give insight/mental model on how to think about differentiating your product. Should a person think about it from the first day itself?
On the first day, the motivation for us to pursue this was pricing… competitors were quite expensive either for better margins(8x-10x) or the technology cost to them.
Now when we have built the product, it seems the competitor will lower their pricing / reverse engineer our product to see how we reduced the technology cost. Either way, we won’t be able to survive for long.


#3

You either have to be cheaper or better by a large factor. If it is not large enough, people will use a good enough product.

The other big thing one needs to worry about is costs will always come down, either due to scale or technology. So cost purely can’t be a differentiator.