Product Lifecycle Explained. Today, we are going to talk about an absolute tragedy that nobody talks about. I can't even begin to express how much I feel for them. Also, we are going to talk about the truth behind your iphones, macs and technological gadgets that you have in your house.
You might just learn something during this episode.
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Today I want to start this podcast with a funny fact. I've seen the worst of the worst, my friend. I mean, I can't even begin to explain how low this is. OK, so are you guys familiar with dragonflies?
So Dragonfly's, let me tell you this. Female dragonflies are the worst. They are the worst. Why? Because here's the thing. And this is crazy. They will pretend to be dead in order to avoid having sex. What does a brother have to do to get some love over there?
It's not really the point of the podcast. The point that I wanted to make today is about the product lifecycle. And people don't actually know this stuff. And it's fascinating. If you understand about every single product that you're buying, you'll understand the origins and then the reason why all of a sudden things change and the item is like super cheap now.
So basically what happens is that in the beginning, let's say the product has been created in the US. And the product is only produced in a really small quantity and is only adopted by the pioneers, the early adopters and stuff that are willing to pay the price just to be the first because people have different motivations.
So in the beginning, this item is very hard to produce. It's produced in very small quantities and it's super expensive. As time goes by, what will happen is that the production system for this thing gets better. The demand gets bigger because you have the pioneers and then you have some followers like, oh, let's let Bob take all the risks and we'll see if he actually enjoys it. If it's a sure thing, then afterwards we're going to follow.
So basically when the product starts being used by the middle class, then it will start being mass produced. OK, and at that point, very often what happens is that the company will realize that it is cheaper for them to produce the item in a different country where labour is a lot cheaper.
OK, so this is when you start seeing some companies having a plant somewhere in another country because the demand is growing. Right.
So basically this is when everybody starts wanting that item. So it was the same thing for like televisions and stuff like that or even cars. Right.
Product Lifecycle Explained.
So it’s fascinating when you understand that, you know, you can start you know, you see that the item was like super expensive in the beginning and a few years later, you know, you don't know why the item is super cheap. And people are like, yeah, but it's just because of demand and stuff. No, it's not just because of demand. It's because if the plant producing the product was still in the in the US with the same taxes, even with the demand, the price would have stayed that way.
So this explains how the cycle works. For example, some of these weird name smart phones and stuff like that are actually pretty much the same thing as the branded product. They’re made by the same people, but go out cheaper because they have to be sold as a separate entity. So when the brand is unknown, then people won’t pay top dollar for it.
And sometimes, I mean, please understand this. Sometimes it's the same exact product. So, for example, you'll see when you go to a grocery store, these people have studied hard. Nothing is put on the shelf by accident. OK, so whatever is right in front of your eyes is what they want you to buy. Right. And they will put some stuff that's really like the cheap ones. They're going to be at the bottom.
So here so you have to, you know, to reach and sometimes I mean, the stuff that's all the way up there is, I don't know, like the cheap stuff as well. But the cheap stuff, they usually put it at the bottom because they know that people are looking either for, you know, for the recommended brand or some people like to go to the cheapest stuff. Right.
So what did people realize? They realized that, you know, whatever happens, we are going to have people who are going to reach out to reach for the cheapest item. It's a fact, statistical fact. It's going to happen.
So suddenly you see alternatives to the well-known brands appearing, offering the exact same product but at a cheaper price. It’s in a different box and so is perceived to be different. So now, the customers who may not have bought the more expensive brand will go for the cheap option. So the product sales go up.
So my point is that if you know that kind of stuff, then you understand you know, pretty much everything works because it will affect every single product, every technological product that you see out there. It's all going to go through this phase.