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HeLow

Hey I am on Medial • 1y

Why does Aman Gupta dislike startups whose USP is price while having the same USP for boAt?

Vinay K

Building Skolarli - ... • 1y

A questions best answered by him, however here is my take: 1. If you play on the price-game, it will need a good amount of capital to build a distribution system to get sales. 2. Established competitors in the industry can very well offer seasonal discounts as well, which means for an entire season your product sales will take a nose dive. 3. Need good amount of money for advertising to make your product visible and heard. Basic funda- if you play on low price , then you will need to invest upfront, for a VC this may not be the optimal use of their investment, Since the outcome despite the initial investment may not be attractive, profitable yes- but not very attractive.

3 Replies

Replies (3)

Shrihari Kulkarni

Hey I am on Medial • 1y

This was the answer I was looking for. Having price as USP isn't a problem at all, but for a VC they'd want their investment put to better use, to make a product like no other. Most companies that play on the price USP are usually ones with a very large capital

Vinay K

Building Skolarli - ... • 1y

Yes, maybe that too :)

MUGESH P

Hey I am on Medial • 1y

He is playing on psychology of entrepreneur to put them in a state of indecisive.

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