There's a consumer beverage that is slowly gaining a following across the globe
. But there's just one big catch: it's a product would normally be considered a
s unfit for human consumption.
The product is Kombucha tea. It is now a a $34 million industry, according to t
he Wall Street Journal. Add to that a currently strong growth trend from health
buffs who are snapping it up and you've got a totally new (from our perspectiv
e) product that should whet the appetites of aspiring entrepreneurs.
Until you realize what Kombucha tea is: black tea, sugar and fruit flavoring...
into which you dunk a colony of fungus and bacteria that ferment the liquid. T
he result? A tea drink where you can see molds floating on the surface, which s
mells like garbage (ugh!), and tastes like spoiled fruit juice (which it is).
So what are the tricks for selling the unsellable? In the case of this strange
product, here are three tips:
1. Go for the health buffs. No surprises here, but it should b
e clear why this is the preferred route. What you are actually doing is hitting
the "educated" market, or the kind of market that is willing to learn about ne
w products that tie in with their lifestyles.
2. Up your margins. You'll have a very small market, so in ord
er to survive you'll have to squeeze as much as you can from the existing marke
t. The bonus? High prices for health beverages have the psychological effect of
convincing the market that these must be the real thing after all. Credibility
increases with price point.
3. Limit your channels. If you have a unique, interesting prod
uct, people will go out of their way to hunt you down. So take advantage of tha
t: you need not spend too much to create a wide distribution network, and the l
imited availability can make your product feel like an exclusive item. Be prepa
red to sell in bulk to eager buyers though.
Eventually, if you manage expectations just right, your health buff buyers can
become your product champions. In which case don't hesitate to reward those who
enthusiastically spread the word about your product. In so doing, these produc
t champions may eventually expand your potential market beyond just the health
buffs alone.
Who knows? Done right, there's even a chance that a moldy, smelly product like
Kombucha tea would become a mainstream beverage!
Selling the Unsellable
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