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5 Proven Ways Your Commoditized Business Can Add New Value (Starting Today)

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24.06.2021

In the business world, saying that a business is “commoditized” is never a good thing. According to Investopedia, when a business is commoditized its “goods or services [have] become relatively indistinguishable from the same offerings presented by a rival company. Generally speaking, commoditized products within specific categories are so similar to one another that they are only distinguished by the price tags attached to them.”

Usually, this occurs as more competitors enter a space that was once fresh and innovative. The products or services you offer may also be seen as more of an “everyday” item rather than a unique must-have.

When this happens, your profit margins are going to fall because you don’t have anything that helps you stand out. Fortunately, any business that has fallen into the commoditized rut can escape by finding new ways to add value.

Related: How to Figure Out Your Margins

Start by looking at your products or services themselves. Are they in need of an upgrade? A seemingly minor upgrade to an existing product or service can create instant differentiation that your competitors can’t match.

Apple's iPhone is the perfect example of how incremental innovation can turn a product into a must-have. You don’t necessarily have........

© Entrepreneur


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