When you are responsible for the manufacturing or distribution of consumer goods, your business model probably falls between two extremes: Production Orientation and Custom Orientation. Acutely to the left, a strict production orientation places the emphasis on high volume, low cost. Efficiency is king. The product/service scope is slim; those whose needs fall outside narrow-defined boundaries simply won’t be served. Because very few options are available, material is able to be purchased in large quantities and craftsman become adept at the three or four variations that are permitted. This leads to lower costs and faster production, which ultimately leads to a lower price overall.

At the right end of the spectrum is a focus on unique, customized goods. A custom orientation emphasizes individual taste over generic preference. Personalization is the highest priority. With this mindset, an infinite number of possibilities are welcomed. Customized manufacturing tends to cost significantly more, as it takes increased time to meet distinctive consumer specifications, and the materials used are so diverse in nature they cannot be purchased at volume savings. Ultimately, the consumer receives a product that is unique to them – however they’ve spent significantly more money to receive it.

Typically, business models are not one extreme or the other; they fall somewhere in between. For example, at Sewell Shutters, we aim at being midway between the two and then a little to the left (just slightly more production aimed). We are production oriented by using limited wood options (Damar / Bayer for painted shutters and Basswood for stained shutters) which allow for larger component purchases and faster production; we are custom oriented by painting or staining each shutter to match virtually any sample provided by the customer. We are production oriented by only offering a dozen frame profiles; we are custom oriented by allowing consumers to pick which profile best suits them. We are production oriented by scheduling installations according to our factory’s needs; we are custom oriented by consulting with the consumer on which date and time would be best for them. We are production oriented through our panel program by selling generic raw or primed panels to shutter manufacturers nationwide; we are custom oriented by offering local companies many more features, all the way up to a delivered product that is finished and ready to be installed.

A little to the left. That’s the Sewell Shutters model. Maintaining this position on the line is a balancing act requiring constant attention and discussion. When faced with any major decision regarding a product or service change, we ask several questions of it. “Will this increase efficiency and/or lower costs without sacrificing customer focus?” is one example. “By pleasing this specific customer with a service change, will we damage the service we provide to others?” is another.

Where is your business on the production-custom orientation line? Are you trying to be both extremes at once? If you are, you will wear yourself out. Is your current niche already saturated by too many other companies? If so, you may have a difficult time converting customers who don’t see the difference between you and your competitors.

Query the market. Discover the niche you can successfully fill. And make decisions that align with your market focus.