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A Business Lesson from the Disposable Diaper Industry
by Marnie Pehrson

As I changed yet another diaper this morning, I started to wonder just how many of these things I've changed in my lifetime. Being a mother of six, I figured it was quite a few. So I pulled up the calculator and quickly determined that the average child goes through 3,900 diapers from birth to 2.5 years. So far I've changed at least 19,500 diapers and by the time our 6th baby reaches 2.5 years, I will have changed 23,400 diapers. (In case you're wondering, no, my husband doesn't do diapers. He's left that honor to me.)

Can you imagine how many disposable diapers get sold in the U.S. alone? The number has to be astronomical. Now that is a secure business to be in! What makes the disposable diaper industry so secure? What lessons can we learn from them?

  1. Get your customer hooked. Who in their right mind would go back to cloth diapers after the convenience of disposable? Not I! How can you make your product or service so irresistible that once your customer tries it, they'll never go back to their old way of doing things?
  2. Target your niche . The niche is obvious with disposable diapers. Is your target prospect as clearly defined? It should be. If you don't know who will buy your product, how can you effectively reach them? Knowing your customer makes marketing cheaper too. Is it more economical to put a diaper ad in USA today reaching thousands of people who don't even have babies just to reach a percentage who do or to put your ad in Parenting magazine and reach only the people who will buy your product?
  3. Go for repeat buyers. How can you get people buying your products and services over and over again? What about a monthly maintenance plan or a monthly subscription? What about add-on products? Gotta have those diaper wipes to go along with the diapers. How can you keep your customers buying over and over again?
  4. Distinguish yourself from the competition. Personally, I don't think the diaper industry does that great of a job in this respect. I mean is there really a difference between Huggies, Luvs, and Pampers? Most of us just buy the one that's on sale or for which we have a coupon. But, there is some differentiation going on. For example, my baby can somehow manage to wet himself so that his clothes will be soaked but the diaper is dry. I have no idea how he does this (and believe me after 6 kids I know all the tricks). So you can bet I'll pay a buck or two extra per bag of diapers to get a brand with "ultra leak guard"
  5. Understand the power of numbers. Play with pricing until you find a level that gives you the maximum profit. For example, is it better to sell fewer of your products at a higher price or to sell more products at a lower price? This will be different for every business. For example, if you are a consultant and have a limited number of hours available to sell, then dropping down to a rock bottom price to go for quantity probably isn't the answer. But if you're selling diapers, well, those generic brands for $5/bag are awfully tempting to a mother of 6. A lower price is bound to increase the quantity purchased, and evidently that works out for the generic brand manufacturers.
So take a cue from the diaper manufacturers. Learn the value of repeat customers, get them hooked and keep them buying. Or just forget owning your own business and go to work in the diaper industry. :)

Marnie Pehrson, a mother of 6, has been highlighting truth and talent for 15 years. Whether it's writing a novel that spotlights individuals who've made a difference in the world or helping a talented entrepreneur create a platform for his life's work, Marnie underscores truth and talent in innovative and compelling ways. She is the creator of www.IdeaMarketers.com and helps experts promote their products and services online. For more information on her various projects and books, visit http://www.pwgroup.com. Contact the author, Marnie Pehrson , at marnie@pwgroup.com
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