Selling Products Is Good. Selling Projects Can Be Even Better

Great article - thanks to Antonio Nieto-Rodriguez. 

https://hbr.org/2017/10/selling-products-is-good-selling-projects-can-be-even-better#comment-section

Here I am paraphrasing: Selling solutions became popular in the early 2000s when customers didn’t know how to solve their problems. But today, in the internet age, people can do their own research and define the solutions for themselves. Therefore today, think about selling projects instead. 

A focus on selling projects would mean helping someone do something more specific, instead of ‘just selling the product’. For example, in running a marathon, New Balance or Nike or Adidas could provide you with their traditional sports gear, but in addition it could include a training program, a dietary plan, a coach, and a monitoring system to help you achieve your dream. 

And that is just one type of project. More so than products, the possibilities with projects are endless.

One of the biggest challenges facing many industries is that the life expectancy of products is becoming shorter and shorter. Soon after launch, products are copied by the competition, which means they must be priced more cheaply. Soon, they become a commodity. This removes any opportunity for steady, high margins over the long term. This affects even high-end products. Shifting emphasis to selling projects rather than products is a strategic response to this problem.

Stop for a moment and consider what your organization is selling. Is it a project? Increasingly, the answer is clear and affirmative. If not, beware, your products might soon become part of a project sold by someone else.