The flavor of the season these days is about reducing the price, many a times even below costs. Many startups, along with serious encouragement from their VCs, are just not focused on unit economics. I find that a little concerning, as quality and service comes second for many of these well funded startups, and some which aspire to be well funded.
We also have had these pressures in the past, and continue to have it today. But, at IDfy, we focused on differentiation rather than price. As an entrepreneur in India its tough, as most customers/people are quite price sensitive, but we have been fortunate enough to not loose our customers. In fact many have chosen us inspite of having a ridiculously low cost player in the space.
How did we do it?
If you pay peanuts you are going to get monkeys!
While I hate cliche's; that pretty much covers it. As a startup focused on high quality, great customer service and mind blowing technology its important to let your customers know that they will loose all that by going with a low cost player. and honestly customers get it, or at least the important ones do.
Lamba race ka ghoda...
As VCs fund young kids who barely have learnt how to talk yet, I still think there is great value in focusing on the fundamentals ie unit economics, business model and great products. Unfortunately there are too few people in the Indian startup ecosystem who are focusing on the fundamentals. However thank god for enterprises they understand this basic principle :)
We have awesome VCs/board/advisors who understand the above
Disruption doesnt have to be based on price, it can be on quality. Thank god our VCs get that :)
We also have had these pressures in the past, and continue to have it today. But, at IDfy, we focused on differentiation rather than price. As an entrepreneur in India its tough, as most customers/people are quite price sensitive, but we have been fortunate enough to not loose our customers. In fact many have chosen us inspite of having a ridiculously low cost player in the space.
How did we do it?
If you pay peanuts you are going to get monkeys!
While I hate cliche's; that pretty much covers it. As a startup focused on high quality, great customer service and mind blowing technology its important to let your customers know that they will loose all that by going with a low cost player. and honestly customers get it, or at least the important ones do.
Lamba race ka ghoda...
As VCs fund young kids who barely have learnt how to talk yet, I still think there is great value in focusing on the fundamentals ie unit economics, business model and great products. Unfortunately there are too few people in the Indian startup ecosystem who are focusing on the fundamentals. However thank god for enterprises they understand this basic principle :)
We have awesome VCs/board/advisors who understand the above
Disruption doesnt have to be based on price, it can be on quality. Thank god our VCs get that :)
