What is a commodity?

Before we jump into how to differentiate, let’s define what a commodity is:

Any product or service that is unspecialized, interchangeable, or part of a crowded market where key differentiators are hard to determine and loyalty is difficult to win.

A few possible contenders for a commodity could include:

  • Realty
  • Mass-produced, unspecialized products
  • Agriculture or mining products
  • Any product where supply and demand determines price more than brand name

You sell a commodity. Now what?

Since you are no longer focusing on WHAT you are selling since it could be largely indistinguishable from the competition, you have to focus on the story behind your product. For this we will turn to the W5H from journalism: who, what, where, why, and how. Not all of these will be illuminating but by answering them we can get a good sense of what makes your product or service special.

  1. WHO – This is the question we’re trying to answer with all the other questions. Who is the hero of your story and what’s their unique character? What’s their voice and tone?
  2. WHAT – What do you make? What are your services? Even though it may be a commodity, be specific since differentiation is in the details. Are you selling the product/service or are you selling expertise, experience, stability, predictability, or something else?
  3. WHEN – What is your company’s history? Have you been around a long time and have established success? Are you new and unencumbered by “how it’s always been done”?
  4. WHERE – Are you local? Do you have offices nationwide or worldwide? Are you near a hub, a port, an airport that makes doing business with you easier or cheaper? If you are local, are you invested in your community?
  5. WHY – Why are you in business? What is your purpose? What problem are you trying to solve? Understanding and articulating your WHY is a great way to differentiate yourself. Your purpose doesn’t have to be grand but it does need to be focused. And it should be directly tied to your service and products.
  6. HOW – Do you have a special process? Are you high touch or low touch? Is your process automated or bespoke? Do you serve your customers through close relationships or by getting out of the way through self-service?

Within those six questions, you should begin to see what makes you different. Most often these differentiators are found in the WHY and HOW and coupled with an understanding of your competitive landscape, a clear brand position and purpose statement should be uncovered.

Storytime with Acme Bolt & Screw

To see this process in action, let's look at the story of a fictitious company.

Acme Bolt & Screw was a family business founded in 1952. For decades, they did a solid, unremarkable business selling nuts, bolts, and screws. Their product was a true commodity – a bolt from Acme was identical to a bolt from a dozen other manufacturers. They had a loyal but small following of local contractors who valued their fast service and predictable pricing.

Then, the second-generation owner, John, took over. He saw their business was stagnating, losing ground to big-box hardware stores and online distributors that could beat them on price. He knew they couldn't compete on the "WHAT" (a screw is a screw), so he had to find a new story. He used the W5H framework to find it.

WHO was Acme? They weren't a faceless corporation. They were a local business of craftsmen and problem-solvers. Their hero wasn't a screw; it was the maker—the carpenter, the mechanic, the engineer. Acme's superpower was an unwavering commitment to quality and a deep understanding of their customers' needs.

WHEN did they do business? Since 1952. Their long history wasn't just a number; it was a story of reliability, of withstanding recessions and market shifts. They were the dependable, old-school choice in a world of fleeting trends.

WHERE were they? Right here in town. This was more than a location; it was a promise. Acme was a neighbor, not just a supplier. They sponsored the local Little League team and held an annual barbecue for their customers. This investment in the community became a key part of their story.

WHY did they do it? John discovered this was their most powerful differentiator. Their purpose wasn't to sell hardware; it was to help people build things that last. They were in the business of permanence, of providing the foundation for a customer's craft. This purpose resonated deeply with their customers, the makers.

HOW did they do it? Through a high-touch, bespoke process. While competitors went for automation and self-service, Acme became a consultancy. They didn't just fulfill orders; they helped customers find the right fastener for the job, solving problems on the fly and offering personalized advice. This process, which seemed inefficient to outsiders, became their secret weapon.

By answering these questions, Acme Bolt & Screw transformed from a generic commodity supplier into a trusted brand. Their marketing shifted. Instead of showcasing nuts and bolts, their new website and social media featured customer stories, photos of projects built with their hardware, and articles on craftsmanship. They were no longer selling screws; they were selling the story of a successful build, a reliable product, and a trusted partnership. Their business thrived, and they even raised their prices, because their customers weren't just buying a product—they were buying into a story they believed in.