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Good Design = Good Business        

How Good Design Makes Your Business a Money Magnet

October 22, 2024

Are you tired of chasing profits and coming up short? The quest for business profitability boils down to one equation: profits equals revenues minus expenses. Businesses must either earn more or spend less to see greater returns, and while raising prices or cutting jobs might seem like quick-fix options, they damage customer loyalty and employee satisfaction. 

A more sustainable and valuable path to profitability is to invest in strategic design to build brand advocacy, boost earnings and manage production costs. Good design makes your business a money magnet and attracts profits.

Good Design is Good Business because of its potential to increase sales and decrease costs.

Why “Good Design” Leads to “Good Business”

Thomas J Watson Jr (the Former CEO of IBM) famously said, “Good Design, Good Business.” Although he said this in the 1970s, it’s even more relevant today as McKinsey & Company found that design focused companies double the performance of industry-benchmark growth with:

  • Increased Sales Transactions
  • Higher Premium Pricing
  • Decreased Production Costs
  • Lower Marketing Expenses

Good Design leads to Good Business because it creates value through form and function to satisfy the needs of users, buyers, and employees. It allows for smoother internal operations while earning external support, making your company more efficient and your products more desirable.

Good Design boosts sales revenue and market position while cutting production and marketing costs.

How Does Design Increase Revenue?

Good Design increases sales transactions. Effective designs attract attention, influence purchasing decisions, and encourage repeat business. A well-designed product builds emotional connections through the design of form, color, materials, textures, and graphics. Combined, these elements form emotional bonds with your customers to strengthen brand advocacy and loyalty.

Take Apple, it doesn’t sell “technology,” it sells “innovation.” Similarly, Red Bull doesn’t sell “drinks,” but “lifestyle.” Their products and brands form emotional connections with users to attract attention that turns into organic promotion. People naturally share content about brands they feel close to, amplifying brand visibility. By showcasing Good Design, your brand creates meaningful customer relationships, increases brand visibility, and drives more sales.

Good Design justifies higher premium prices. Consumers are willing to pay extra for products that communicate a sense of luxury and exclusivity. A compelling design convinces users that your product is superior to your competitors because the perception of status and exclusivity justifies higher price points.

Ferrari sells “passion,” not “cars.” Likewise, Rolex sells “status,” not “watches.” Customers are drawn to the idea of the premium brand experience, especially when designs are unique or offered for a limited time. Purchases will be motivated by Good Design at every step of the user journey (purchasing, experiencing, disposing) and by the fear of missing out on exclusive products. Good Design prompts more sales and earns you more profits.

Companies like Apple, Red Bull, Rolex, Ferrari, and Red Bull embrace Good Design to drive sales and profits.

How Does Good Design Decrease Costs?

Good Design decreases production costs and product complexities. Involving designers early in development keeps expenses low. Designers practice efficient material selection, part reduction, and the simplification of assembly processes to create value. Design assets like product sketches, 3D CAD models, and part documentation to facilitate clear communication with manufacturers to reduce errors and speed up production.

LEGO excels at Designing For Manufacturing (DFM) because it designed a lean manufacturing system. They scaled the business by utilizing versatile and consistent parts that function with new designs plus designs released decades ago. Similarly, IKEA positioned itself to be radically different by using flat-pack DFM. Investing in Good Design propels profitability by decreasing costs and waste, saving your business time and money.

Good Design lowers marketing costs. The design process deepens your business’s understanding of your audience and market positioning. Designers empathize with audience needs through design, instead of relying on promotional tactics alone. Good Design naturally draws attention and reduces advertising costs. This builds a longer product lifecycle without unnecessary rebranding costs and greater flexibility to your marketing team.

Companies like Supreme design limited-edition products that warrant demand through word of mouth and an “exclusive” appeal. Likewise, Crocs gained popularity through social media and creator partnerships which let their comfortable designs speak for themselves. Good Design has a lasting appeal that empathizes with your audience, reduces marketing costs,  and makes you more profitable.

Brands like Lego, Ikea, Crocs, and Supreme use Good Design to decrease costs and increase profits.

How to Embrace Good Design for More Profits?

Good Design = Good Business. Good Design makes your business a money magnet, but it’s not easy; It takes time, research, and skill. With Good Designers, your products can magnify your business’s profitability by increasing revenue and decreasing expenses.

Beyond Design has been developing products for over 30 years because we deliver Good Design and Good Business. Contact us if we can help you with your designs!

Good Design adds business value by building strong brands that disrupt markets with innovation.

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