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OK you guys if you've made it to this video 2

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make sure to watch through because this is probably 3

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the most important video of the 4

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course oh one of 5

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the top three 6

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and this will determine if a market 7

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of a product has 8

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legs OK. 9

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And it all comes down to consumer 10

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needs essentially whenever 11

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we are buying on Amazon 12

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everybody has an idea of a 13

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product in their head. 14

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And then we all translate that into 15

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words 16

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and then we see images 17

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and then we click 18

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and then we say is that what I saw 19

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in my head. 20

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So that's why I images are important. 21

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Make sure to really optimize your images. 22

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Anyways what we are doing 23

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now is identifying a 24

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what are the customer needs. 25

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Because that determines you know 26

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since we all those images they're all 27

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trying to solve a need. 28

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I could be 29

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by you know that that fur 30

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on the pet they've got to get it off 31

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or it could be they need 32

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something to wear to a party this weekend 33

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or it could. 34

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You know there's a whole multitude of 35

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needs. 36

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So we're going to break down first of 37

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all what the types of needs 38

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are 39

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and then why they're really important 40

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in determining oh what types 41

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of markets to go after. 42

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So there's a couple general ones 43

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and you want to get an array 44

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of these or you want to get a couple of 45

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them. You don't need all of these 46

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but you want to have some way 47

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to differentiate from the other 48

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people. 49

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Because if you're just doing what other people 50

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are doing then it comes down 51

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to price 52

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and the number of reviews 53

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and when you compete on 54

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price it's not 55

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you don't want to play that game. 56

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So here's the games that we do want to 57

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play for, 58

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and that's by finding ways 59

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to fulfill customer needs 60

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that aren't being filled yet. 61

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So there are general customer 62

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needs. These are what people use 63

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every time that they go to buy. 64

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They're not actually using them 65

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like checklists 66

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and kind of filling out like yes it 67

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meets this. 68

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Now they're going and they're psychologically 69

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thinking about these 70

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and somebody goes to buy this might 71

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be the only important one. 72

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Mike you forgot a wedding gift 73

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and it's like what is there. 74

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What are my options. 75

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All right. 76

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So that's one where you could essentially 77

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go and add value by 78

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having Amazon Prime 79

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and deliver in two days 80

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or even overnight versus 81

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if all the other people in that market 82

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were five to seven days because 83

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they were shipping it themselves. 84

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So that's one thing that we 85

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can look out for is just 86

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offering fulfill by Amazon when it doesn't 87

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currently exist. 88

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And it's also comes into. 89

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So basically the meta concepts 90

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of that is that it's about time 91

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and convenience 92

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and efficiency. 93

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So there is that 94

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with obviously the delivery speed 95

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but we could also be offering that 96

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in their daily life. 97

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So does is there a way that 98

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we could somehow make this 99

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product more convenient 100

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or efficient for whatever 101

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their need is. 102

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So what are their needs though. 103

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That is utility. 104

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So there is two needs 105

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actually. There is self-expression 106

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and there's utility 107

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and I'm gonna to explain what those mean 108

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now. 109

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So essentially if you're looking for 110

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utility you need to 111

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achieve something 112

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or improve your life. 113

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Like if I'm in the headphone market 114

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I'm obviously looking for something that 115

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is functional. 116

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So I'm not looking for a 117

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self-expression one I'm not looking 118

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for some like ones for a photo 119

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shoot or to make me look beautiful. 120

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There are some people that only 121

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care about the design of them 122

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but a majority of the people are looking 123

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for utility. 124

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So I would 125

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kind of just like we'll just analyze 126

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the different needs 127

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and why there's so many products in 128

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the headphone market. 129

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There's functionality so 130

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Bluetooth these 131

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they fold. 132

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OK so that is 133

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great. And what 134

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these end up doing as they improve 135

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the consumer experience. 136

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OK. 137

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So when you improve experience 138

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basically you're just going to get a happier 139

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customer. 140

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They're going to feel like a G 141

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when they put them on 142

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and you feel even better if he 143

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was wearing ones without a cord. 144

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Because I love that they're Bluetooth 145

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and it makes working out a lot easier. 146

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Another factor of utility is gonna be reliability 147

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so I know 148

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and will pay a lot more 149

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for these Bose headphones because they're 150

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reliable they will last for 151

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years and they don't break because they're 152

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foldable so like we're 153

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saying it's not like these functionalities 154

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are all. 155

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None of them are independent. 156

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They all kind of intertwine 157

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with each other 158

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and are all important 159

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and they affect one another. 160

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So basically the customers all have 161

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wants and ideas in their heads 162

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on each one of these aspects. 163

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And our goal is looking at 164

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the market 165

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and seeing where are their needs 166

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not fulfilled 167

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and these are them. 168

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So another one is 169

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performance. 170

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OK. 171

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Battery life on these. 172

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Now I will. 173

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I like these because they last 174

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for 10 to 20 hours 175

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and they automatically turn 176

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off so I barely 177

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have to charge these. 178

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So the the performance 179

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and reliability of the battery 180

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is really great. 181

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Now what we also have 182

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is performance could be how 183

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high. How good is the base 184

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how how high are the highs 185

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you know and just that 186

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and then 187

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and in those overall effect 188

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the experience right there. 189

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Now compatibility 190

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this is kind of a hit 191

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or miss. 192

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Is it compatible 193

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with what you need for example these 194

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are only compatible with IOS 195

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I'm not going to buy because guess what 196

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I'm an Android guy 197

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so I guess the question is is 198

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we're kind of like what are we looking for. 199

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We can see through product reviews 200

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or just blog posts on the Internet. 201

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Few come complaining saying 202

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I wish that there was this functionality. 203

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I wish there was more. 204

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Whatever. So essentially 205

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we're kind of keeping our eye out 206

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for what are the utility 207

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that parts where people 208

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aren't necessarily happy. 209

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Then there's also self 210

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expression and this is where I suggest 211

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that the beginners go in 212

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and tell you why. 213

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Why. 214

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Because with functionality there's 215

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only like what made before things 216

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of functionality that people care about. 217

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Some of these are apparent in 218

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a market 219

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and some aren't. 220

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And oftentimes there's only a couple options. 221

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But with self-expression 222

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that's endless. 223

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OK now.... 224

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I for example like the alpaca swim 225

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shorts. 226

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But you might like the gorillas. 227

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And that's OK. 228

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But what makes it great is 229

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when there's seven choices right 230

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here there's 231

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no best answer for anybody. 232

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Everybody ends up choosing a different 233

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choice 234

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and because of that you 235

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could be right down there. 236

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The number six gorillas when 237

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put shorts because of course number 238

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one is the alpacas the best. 239

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But people will continue 240

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to choose the gorilla ones 241

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so I'll give 242

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you now a real life example 243

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so that you can make this a little bit more 244

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concrete in your head. 245

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Here's an example where self expression 246

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and design is more 247

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important than functionality. 248

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So if we were to look up wedding gifts 249

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here 250

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and I could show you quick there's 251

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quite a bit of revenue coming through 252

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wedding gifts. 253

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All right. So we take a look at wedding 254

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gifts. It's taken a while to load 255

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because Internet's been 256

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a dinosaur here in Germany. 257

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There's examples look at this is doing 258

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seventy six thousand dollars of revenue 259

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of a bamboo cheese board. 260

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All right. But if we take a look 261

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at the there's obviously quite 262

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a bit of revenue on all the other choices. 263

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But if we take a look at these 264

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they're all different. 265

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And why. 266

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Because design 267

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and self-expression 268

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is the answer in this market. 269

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It's not necessarily about functionality. 270

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It's that self expression. 271

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So you're giving a gift to somebody 272

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for their wedding. 273

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And it's 274

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the choice is different for everyone. 275

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I'm never going to buy this glass 276

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right there because I 277

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just I'm not going to give my 278

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friends a glass for alcohol 279

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and I just miss always right 280

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Miss Right. No. 281

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That's not cool not cool to me. 282

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Maybe it's cool to you. 283

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That's OK. 284

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Or this you know people who love 285

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kitchen stuff 286

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or people who love wine 287

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and cheese but I'm not 288

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really that passionate about alcohol 289

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so where where's 290

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the one for me. 291

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Where's the muskrat where's the alpacas. 292

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All right. There's your opportunity. 293

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Go build alpaca wedding 294

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gifts. 295

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Just kidding. But I mean look 296

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we're still all here. 297

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This one is good except 298

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I don't have a beard. 299

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You guys as we're seeing this. 300

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They're all different. 301

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So you could come in 302

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and make a different Oh 303

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Legos. 304

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You could come in 305

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and make a different product 306

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and have an opportunity. 307

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So with that self-expression 308

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was important. 309

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Design was more important than 310

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functionality 311

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and obviously it just had to meet 312

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the bare minimum of utility. 313

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But the most 314

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important part was that self-expression. 315

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Now if we go in 316

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we'll take I'll just show you guys 317

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quickly where 318

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a market where utility 319

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is the only thing that's really important 320

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and why you probably don't want to 321

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go after one of those 322

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where there's not many options 323

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to differentiate on utility. 324

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So if we take a look at the famous pet 325

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gloves which most people 326

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who are getting beginning they always 327

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think this is a great market. 328

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This... 329

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I'm looking at this 330

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and I look at my framework 331

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here 332

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functionality. 333

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OK. What's the. 334

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Let's take a look at functionality 335

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what is the function that people want. 336

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They want to get that fur 337

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off their hairy animal. 338

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OK it looks like they're all 339

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about the same. 340

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So I have no way to really 341

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differentiate between 342

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these based off of functionality 343

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alone 344

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now if we take a look at 345

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experience 346

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what I don't know if any 347

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of these really have a different experience 348

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for me getting that fur off my 349

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animals. 350

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Another option could be reliability 351

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but they all look just about the 352

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same reliability. 353

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Maybe these look a little bit 354

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more reliable because the image 355

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looks like they're a little bit spike year 356

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and that they are just 357

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the plastics built in a little bit more 358

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but that's about it. 359

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And I guess you could also make 360

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the argument that they'll have 361

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a better performance because they've 362

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got those high quality spikes 363

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but in the compatible 364

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I guess you know like what's the difference 365

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compatibility maybe there's one that's more 366

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compatible with alpacas 367

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or cats 368

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or something but 369

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I mean as we look here I mean you could try 370

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to say or is the best one for cats 371

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but it looks the same as the other ones. 372

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So this is why essentially 373

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the market is decided they 374

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want to just get the fur off 375

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their animal 376

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and that's it. 377

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All right. They're not looking to 378

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go to you know 379

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a fashion show 380

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or a party you can 381

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take the fur off their 382

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animals. 383

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They're just look into a 384

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get a get the deed done 385

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at home. So the summary is we 386

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want to look for places where we 387

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can add that value 388

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by looking at all of the things. 389

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And there's just not much value 390

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to add here other than 391

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maybe an image 392

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with a different cat 393

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or animal 394

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but that doesn't do anything so 395

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wrapping it all up. 396

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You want to find markets where there's a multitude 397

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of needs and it's not just one 398

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need and that's it because then it's 399

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it's pretty clear who the winner is you want to 400

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go where there are multiple 401

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winners 402

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and we'll show you guys later exactly 403

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how to go do that sneak peek 404

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look at the reviews look at 405

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the distribution of them 406

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and if they all look the same runaway 407

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probably unless you can do 408

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some neat over there. 409

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All right. Onto the next thing that we're 410

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going to look out for on our treasure