A review of The Long Tail by Chris Anderson

After reading The Long Tail blog for some time now, it was only logical to read and review the book having seen it unfold in real time. The Long Tail is written in an easy to follow style, and advances quickly while still providing the necessary depth needed to fully explain the Long Tail concept. That concept is well-illustrated by a collection of research and observations that the author, and others, have made about the impact of the reduction of distribution costs for nearly all media, but also the democratization of nearly all aspects of bringing a product to market. These two factors are the driving forces behing eBay, Netflix, iTunes and many other digital media distributors and online retail channels - the Long Tail is also responsible for allowing almost anyone to design/manufacture/craft something and sell it to anyone on earth with an internet connection. A multitude of examples, including some that go back well before the digital age, reinforce and explain the theory that niche products will continue to prosper and gain profitability in the future. The unfortunate bit is that the book is being published through decidedly non-Long Tail means - it would have been brilliant had Chris self-published the book to demonstrate the Long Tail first hand - but none the less, The Long Tail appears to be headed towards the realm of the 'hits' where it undoubtedly deserves to be.

The Long Tail @ Amazon

[Full disclosure: I received a pre-release copy of The Long Tail from Chris, but that does not change my feelings on the book].

DIY Furniture + Multiple Price Points

Another idea I've been throwing around for a while now is how can you effectively make a single item or design appeal to the widest possible audience without removing the highly-focused niche elements?

I think the answer may lie in providing the product at a wider range of price points. You see this to some extent now with many manufacturers/retailers - you have a standard/base/stripped-down product at the lowest price point, and then you can add features, customize it, whatever, for an addition to the price. Automobiles are a great example; all models have a 'base' version, with a wide variety of options available - wheel/tire, suspension, graphics, interior, and stereo upgrades just to name a few - often adding many thousands of dollars to the price tag in the end.

One thing you don't see the larger companies offering is a kit or DIY version that reduces the price drastically by having the customer add one of the most expensive components of production - labor. This may not work so well for automobiles, but for smaller manufactured items that can be customized (and often are, post sale), it makes a lot of sense.

RTA furniture is one example where the labor cost is reduced (along with the shipping cost!) by having the customer assemble the item. In reality, the product still comes in a limited number of variations (if any). The variations/customization options are the missing key, I think.

I want to offer my first products for sale in a multitude of ways, from full component form (lowest possible price, naturally) up to the fully-assembled and finished item, only offered in the specifications that I designed it to be. Customization is endless, but instead of penalizing the customer for personalized changes by adding upcharges, they simply purchase the chair in a less-finished state, for a lower price, and complete it themselves. There are some tradeoffs however - possibly poor construction and finish by the customer, seemingly endless customer support from customers who can't grasp/don't understand how to complete assembly, and possibly negative reviews and public opinion because of this. I maintain my profit margin while spending less time on the product, and the customer ends up with exactly what they want. I have a great deal of confidence in people, and with a little guidance via website, instruction guide, etc., even the most obtuse/clumsy/etc. customers can do the time-consuming-and-high-labor-cost-but-relatively-unskilled finishing and/or assembly component of the process without too much difficulty. Its empowering to build something, especially when you feel like you've "cheated the system" and saved a few bucks, while producing something remarkable.

Offering products in such a wide array of finished states is not financially viable to manufacturers who have their profits built around efficiencies of scale, but for a micro manufacturer, it should be a piece of cake. The only added overhead is a bit more info on your website, and maybe a little bit of 'tech support,' which is not such a bad thing (talking with your customers!) provided its not all you end up doing (because your product is impossibly difficult to assemble, for example). This is not a strategy for all products - far from it - but for certain niche products that usually end up with a large price tag because of labor involved (furniture, in this case) I think many customers would opt to buy the "kit" either for the customization/personalization or the cost savings (or both).

What do you think?