Are you an entrepreneur or building a business? The 70/20/10 formula, the SSC is the only successful rule of thriving businesses.
“Learn to be indifferent to what makes no difference.”
Are you flooding your customers with too many choices?
Are you spending too much money to customize your offer?
Are you aware of the SSC rule, the only well-guarded secret?
We have been together for more than 8 years. He has always been there for me.
Then it happened. We broke up. Well, not intentionally. It was an accident.
We are at the table in the living room. We were enjoying a great moment together.
Then I moved the bottle of water. It spilled it over him. I was so surprised that I was frozen.
I saw the light disappearing in his eyes.
“Do something!’, yelled my wife!
Then I leaned over him and started lifting him upside down.
I let him dry for 3 days. He never came back.
My Macbook Pro was lost to water over its keyboard.
Fast forward some days after.
I am on the Apple website. I was about to order a new computer.
Have you ever been to the Apple website?
There are only 2 colors to choose from for a MacBook Pro laptop: Silver or Space Gray.
As I am writing this article by the end of 2021, Apple is valued at more than $2 Trillion.
Yet when it comes to their proline laptops, they only offer limited options.
PC customers can choose from various colors for Microsoft Windows laptops.
Why is Apple offering so limited, and why is it the smart way?
Then answer is hidden in the 70/20/10 formula, aka the SSC rule regarding their offers:
- 70% of Standard,
- 20% of Scalable,
- 10% of Customization.
This formula is one of the key secrets that makes Apple unique and valuable.
Of course, the values are not carved into the stone. Therefore, they may differ from one company to another.
As long as you get the idea, the implementation is adapted to your business and aligned to the type of value you want to bring to your customers.
A. 70%, the STANDARD OFFER, Stable and Invariant — The idea here is to make the biggest part of your catalog of services standard et invariant.
By doing this, you can streamline your offer and mature it. It will help you also bring more value to your customers.
Indeed you can have a lean production line, a lean supply chain, and lean ways of working within your company.
Coming back to the Apple example, they only offer 2 standard laptops: 14 inches and 16 inches laptops for their latest pro-line.
As a customer, I am not frozen by too many choices. On the contrary, I feel like I have enough options.
B. 20%, the SCALABLE OFFER, Exists in different versions — A small portion of your catalog must be scalable.
The idea is to reduce variability by trading it with scalability. By making your products scalable, you are making them easy to produce.
On the other end, customers like the possibility of adding options to the standard offer.
For the 14 and 16 inches laptops, Apple offers 2 types of processors: the M1 Pro and the M1 Max.
There are many ways to scale your laptop to max out the configurations based on your need in that standard offer.
C. 10%, the CUSTOM OFFER, Specific to Customer — An even smaller part of your catalog can be customizable by your customers.
The idea is to give to each customer the possibility to add that extra option that will make them feel that they are in charge.
A high level of customization can be very costly for your company and services: from the design to the production, the catalog offer, and the in-service maintenance to the supply chain.
The more options you offer for customization, the more stocks you need to secure for each option.
There are only 2 colors to choose from with Apple pro laptops: Space Gray or Silver.
Many people complain about the limited choices of colors.
Yet the approach of a low level of customization is one practice shared among many big tech companies.
There you have it, the SSC secret of thriving businesses:
- 70% of STANDARD OFFER — Stable & Invariant,
- 20% of SCALABLE OFFER — Exists in different versions,
- 10% of CUSTOM OFFER — Specific to Customer.
Be it Tesla, Apple, or other big companies offering physical products, they are implementing the SSC rule in one shape or form.
Of course, the 70/20/10 formula can become 80/15/5 or any other variation.
The key takeaway is to make sure that you narrow down options the closer you get to the customer.
Yes, it might feel for customers that everybody has the same color for their Macbook or Tesla, yet they are ready to make that trade-off.
Ultimately, those companies streamline their products and add value to compensate for the “limited” options.
As a business owner, using the SSC rule, you are making it easy to design, manufacture, and ship products that your customers will adore.
The 70/20/10 formula is a great way to simplify your offer and be more competitive even if you are not shipping physical products.
In the end, it is not about many choices. Instead, the secret to a thriving business is hidden in these 3 letters: S.S.C!
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#BIOS #BringInyourOwnSoul #LeadHeartship #Leadership
You can read my previous article on If you are more than 10 years old and are not a plumber, you have failed your life. Are you aware of the 2 secret rules in plumbing? (Friendly link)