Are you selling an A product?

In the late 1940s, the first tobacco company of Anton Rupert — the South African ‘child of depression’ who went on to build a multi-billion Dollar business empire — was losing money. The post Second World War economic climate was difficult, particularly on new businesses wanting to gain market share.

It was during this time that he learned a major lesson. Stop selling “C” class products.

He distinguished between A, B & C products with “A” being better quality than those sold by the competition. “B” products are equal to competitors and “C” class products — those being sold by Voorbrand at the time — are inferior.

If you sell C products, he noted, you need to imitate your competition or sell your product at discount prices. Both of which are not viable options for quality-driven entrepreneurs.

A products allow for higher margins and improved customer satisfaction.

In the rise of Rembrandt, Rupert would always push for his employees to launch ‘A products or at least B+ products’.

(Reference: Anton Rupert, a biography by Ebbe Dommisse, 2006)