A Great Business Model #GotGotNeed
A new obsession has taken over our household, and for once I’m not to blame! Mrs N and James are addicted to Panini’s Premier League 2021 Sticker Album (justified to help James’s fine motor skills, even though they seem fine when he’s on the PlayStation, plus I know Jacki is re-living her ’86 World Cup Panini days).
Whether you’re a fan of Panini or not, we can learn a lot from their successful Business Model:
#1 They Created a New Market
The number of packs you’d have to buy on average to fill an album by mechanically buying pack after pack would be 899! * So, Panini created a new market for collectors to swap whether it be in the playground or at organised events.
# The Power of Limited Supply
When you have a sticker prized by many, you soon realise the power of limited supply! The more people who can be attracted into the market with their duplicate stickers, the better the chances of finding the sticker you want. As with any market, liquidity counts.
# Understanding Behaviour
Panini recognised that their market’s buying decisions are based on feelings rather than facts. Even though the probability of getting a new sticker gets lower and lower, people still obsess with buying pack after pack. And then offering to swap up to fifty cards for one prized card they need! Hence their #GotGotNeed.
# Additional Revenue Streams
Lots has changed since Panini UK came into force with Football ‘78; they’ve expanded their range to include other sports, movies and even computer games. Plus, a whole host of additional income from collectors’ tins and bundles through to personalised stickers via an app.
I’d urge you to take some time out this week to look at your own Business Model and identify any opportunities you may be missing out on.
* Economist Tom Standage reports on a study by the University of Geneva