We expect to pay for…
- Food, clothes, electronics, most physical products.
- Housing and insurance.
- Phone service, Internet service, electricity.
- Labor and professional advice.
We don’t expect to pay for air, freedom, friendship, love, personal advice, etc.
To enter a new market, you need to understand who pays who for what. If you know what people already expect to pay for in your industry, you know the needs and the budgets already assigned.
Although these needs are not set in stone and budgets can be created (we learned to pay for bottled water…), they are expected and easier to fulfill.
Creating something new for a new market with a new business model is dangerous. Feasible, but dangerous. Expectations and comparables serve a purpose.