The WAY to WOW Shows
When to Kill a Product
February 11, 2026
Automatically generated from YouTube captions; names and wording may contain errors.

[0:01] Who are you and where are you going? What do you want? Hello and welcome to PE um People Making Money. Uh I'm your host Kevin Bemel. I'm apologizing for a bit of a late start uh this morning. I had to be in a court hearing and uh as they sometimes do, they went long. So uh but um glad glad to be with you uh this this uh Wednesday

[0:36] morning or Wednesday morning at least here on the on the West Coast and uh I thank you for joining me. Uh one second here. So um uh today I'm going to be talking about when to kill a product. So this is for for for um much of this year um well I you know what I I realized I didn't do my so on people making money um I talk about uh job hunting, starting and running a business and building wealth.

[1:11] Those are the three sort of categories of topics and I'm going to be rotating through those topics uh this year. So hopefully um you'll get a a a big a better picture of uh you know the kind of information that you can get here relative to your financial life. So today's uh um show is um I think primarily geared toward business owners, but if you work for a business where you deal with

[1:46] product strategy. So you know in that case this this information will be value valuable for you as well. So, um, I'm going to be talking about when to kill a product. At least that's what I call the show. Uh, however, it could also have been termed when to kill a service. It just doesn't sound as good. And and and I didn't want to make the the title uh too lengthy by saying when to kill a product and a service and, you know, on and on and on and on. Right. So,

[2:23] um, it's and and you when to kill an offering. That sounds like we're, you know, I don't know, making sacrifices in the temple, you know, back in, you know, 200 years ago. I don't know. So, anyway, that's that's the topic for today. And I have um several thoughts uh to to share on that that uh hopefully um you will find um useful. So, um, you know, unless you're unless your your com the your company or the one you work for is brand new, uh, there tends to be

[2:58] almost like a product or service creep that that that um tends to happen at a company where they may start out with whatever their initial product or service is and then over time they add things uh to to the business. They they they initially may be extensions of the initial product or service or it may be a divers a a a diversion in another direction. So lots of ways that that can

[3:34] happen. Uh but at at some point a company has multiple services or products and the question should be asked are these products or services are they working together or are they distracting the business pulling it in in multiple directions so that it no longer oper operates uh you know as well as it could. So um

[4:11] so um my my first uh item on on on or thought on this is um you know oftent times we'll have customers and they're just in love with a product. Doesn't matter what it is, people can fall in love with all kinds of things. Uh but the the fact that customers are in love with the product doesn't necessarily mean that it's one we should continue to offer. Okay? So love doesn't necessarily equal profit. And in the end that's what we're

[4:48] here to do with our businesses is make a profit so that they can support us. they can support uh our our team members, our employees um and be of you know benefit from a commerce standpoint to society. So a business that is losing money or that has a product or product line that's losing money is is not beneficial to anybody really. Uh the people who love the product, okay, well so let them buy it. you know, I don't know,

[5:24] secondhand, right? Think about a book that's out of print. You can you can still buy it. So, um you can you can buy it, you know, used or you can find new copies that have been warehoused or something like that. So, uh you know, despite having absolute passionate users, it can still destroy your margins. Okay? Uh and and and this this is this this is sort of the core of the problem is there are hidden costs to uh maintaining

[6:02] um a product that um that really shouldn't be part of of our offerings. So there can be um customer support issues of of an ongoing nature that become ever more expensive as the number of users shrinks. So the uh the overhead for that particular aspect of supporting um the the the product um you know eats up it becomes a bigger part of your fixed costs relative

[6:38] to the revenue being generated for that product. Um there can be issues with customization. So there, you know, that becomes another drag on cash flow. Um, and then having to maintain, you know, legacy tech. Again, um, all of these become drains on cash flow. And while you may have this cadre of loyal, passionate customers over time, it is going to shrink. and and yet there's still somewhat of a

[7:13] fixed cost to maintaining the tech, the customiz the ability to customize the the support. And so the cost per customer to do that keeps rising. And so, you know, the bottom line is is sentiment just doesn't show up on a profit and loss statement, right? Numbers do. So, uh, you know, give you an example. Um, rotary phones now, they've kind of made a comeback, although they don't, I don't

[7:48] think the rotary phones that are around today work the way they did when I was, you know, a child. Um, I loved rotary phones. Um, just I don't know, there was something about them, right? But for phone companies to keep rotary phones or to a certain extent you know wall phones and um what do you call them uh wireless not wireless phones um the phones where you used to put them in a charger rechargeable phones right none of these products would make sense for any company to maintain.

[8:24] They are in fact outdated and supplanted by right cell phones. And so the uh you know the ability to uh transmit uh telephone numbers and data um an through an analog system. That system does not exist anymore. Right? This is why the telecom companies had to get rid of those types of phones. And you know, I would bet you there's a number of people like me who would you, you know, would really find it a kick to

[8:59] have a rotary phone in my house. if nothing else for the nostalgia trip of it. Uh, as I'm talking to you about it now, I can remember when I lived in our first the first house my family and I lived in in Santa Barbara and we had a wall-mounted rotary phone with this long cord in the kitchen and it had the long cord so you could talk on the phone while you did the dishes or, you know, cook the meal or whatever, right? um not not not a not a product that any phone company or any you know electronics company should offer just doesn't make sense anymore and the cost

[9:37] to support such a product despite the fact that there may be you know I don't know 1% of phone users out there who would use an analog phone doesn't doesn't make any sense. Now, by the way, I'll contrast that with vinyl records. So, there was a time when it seemed like vinyl records were going, they were just going to be done, right? And most, if not all, u music publishers um no longer issued music on vinyl records, right?

[10:12] And in fact, much of the infrastructure for that went away. record stores, record player repair stores that that are shops, all that went away. Now, over the last probably 30 years, uh there's been a resurgence. Probably no surprise to you that I'm a vinyl and shellac record collector, right? So, but um it's it's a tiny portion of the music business and overwhelmingly people listen to music through streaming these days. Right now, it's interesting to

[10:48] note that vinyl records have come back. Shellac records is an earlier version of records, but cassette tapes, eight track tapes, they have not. um and nor I don't think have CDs um although I have collections of all those those media um so you know each one requires the equipment to play it customer support you know another you know some other kind of distribution channel right so you know with the exception of um very

[11:24] specific uh groups or reissues of of classic albums s um you you know the the vinyl record thing in terms of new issues is is not a product that's supported anymore and there's a couple there's basically two big manufacturers of record players and then some some smaller ones that do very high-end quality things right so despite the fact that there is a small group of people who love the analog sound quality of records me included it really it really isn't a product that um music publishers

[12:01] are broadly thinking of bringing back and that's because in the end it would it would do more damage to their businesses than than it would uh than it would do anything to enhance them. Okay, so that's number one. Now um that sort of undergurs all the other points. So opportunity costs are essentially a the silent killers of businesses. So the you know engineering time, sales, leadership all their attention is finite. We don't

[12:39] have unlimited bandwidth uh you know no matter what it is that we do. And so if we are spreading it over a range of products, one or more of which really shouldn't be in the mix any longer, we're taking away from the time, the attention, the focus on what really will make our business work, right? So every hour we spend propping up a legacy

[13:14] product that isn't really viable any longer is one hour one less hour spent on focusing on the growth of those products or services that will really give the business that that really undergur the business's future. Okay. So, if you're examining your product mix, you know, ask yourself the question periodically, probably at least once a year, right? If this didn't exist, if I if this product weren't part of my uh

[13:49] product line, would I build it today? Would I include it in my product mix today? Would it be a service that I offer today? Okay. In other words, would you go through the time and effort to, you know, make it a part of it, right? Don't let the inertia of it having been a part of your business for however long it's been, two years, 5 years, 10 years, inertia doesn't mean anything necessarily. Okay? So, if you wouldn't do it today, the answer probably is uh

[14:24] if if you wouldn't build it today, the answer is probably that it shouldn't be in your product mix today. Okay. Next, um has the market moved on even if some of your customers haven't. Okay. So, customer behaviors tend to lag technology and competitors. right now. I I have friends who are early adopters. Whatever the latest thing is, they're on to it before everybody else. I'm not an early adopter, right? Um I'm a I think I'm a mid to early adopter in some

[15:01] things. So, I I got into AI use, for example, you know, relatively early compared to other technological innovations that have happened during the time I've been in business. But I'm not on the cutting edge. Um, and you know, if you look behind me, like I still have, you know, a printer here. This is a a printer, copier, fax machine. Now, the fact of the matter is other than for it's a scanner, too, by the way. Other than for scanning documents, that's that's probably 90% of its use, I don't use it as a fax machine. I don't have a phone line to do so. Once in a great great while, I will

[15:37] copy something or print something out. Okay? But my business is probably, you know, 95% paperless, right? And so, and and there are businesses, I think, that are 100% essentially 100% paperless. And the only thing they would have back there would be a scanner. So, if someone sends them a paper document, the next thing is scan it in and and that's it. Right. So uh you but but most of us I think are like me in the sense that yeah we're not

[16:12] you know we're we're not jumping on top of every technological innovation and and yet um then there are the people who they just will not adopt a technological innovation and they expect those uh you know earlier products or services to still be around even though they're not. So, uh, you know, good service in a bank, it doesn't exist anymore. I mean, it good service by financial institutions in general, it just does not exist anymore.

[16:47] There was a time when even as a what what what banks would call a retail customer um you would walk in and you know you would be treated nicely and your business would be treated with seriousness. Um but but not anymore. Not anymore. I I can tell you this is in because my primary business is administrating probates. financial in financial institutions couldn't care less, okay, for 90% of the time. So, it

[17:22] it it causes no end of headaches. Um and and uh you know, I I I invite you to um view my uh my episode of Trust and Estates Weekly, how institutions fail heirs, um where I go into several that do. The latest one is Logic's Federal Credit Union. I mean just you know they will they they you know just outright lied uh to in a court right um in order to escape responsibility for something that they had done. Now now you know 40 years ago it wouldn't have happened the

[18:00] you know one could expect to you know have honest reasonable dealings with a financial institution but today that that would not be a realistic expectation at all. the the market has moved on. It's it's commoditized almost everything, right? So, it's commoditized banking and and financial services, right? So, if you can't get it done yourself online, you're in serious serious trouble. Probably most of us have experienced that, right? So, um but but that's the

[18:36] way it is. And for us to uh you know insist that it be otherwise, it's just it's just not going to happen. We're behind the times, right? So um what once differentiated financial institutions, the quality of their service, now it isn't even table stakes. they they just it it's just it's not worth their time to even consider it because it doesn't you know having a happy customer does not contribute to their bottom line. I at least I think that's how they look at it because they're always churning

[19:12] customers, right? And so there's no reason to invest in quality service and so that so from their perspective they don't. So um you know for our own businesses which are small where we still do see you know great customer service loyalty between a business owner and his clients and customers. Okay. The the challenge is that if we're offering something that no longer serves our business, customers can will might feel that, you

[19:48] know, we're abandoning them and and being heartless and and and all of the other labels we would put on that. and and that can be very disheartening for us as business owners because we want to offer quality products and services to our customers, but continuing to do so the way we did 10 years ago or 20 years ago is just no longer financially viable. So, how do we then, you know, transition those customers to something else? That becomes the challenge. Now um I'll I'll

[20:25] um I will say that um if we if we have if you have to kill a product. So I think it's reasonable especially as small business owners that we give our clients and customers a lot of you know sufficient time uh to come to terms with what's going to be happening. So to make a decision and then execute it a week later probably not a good idea. There's there's reputational there could be reputational damage. Lots of things can happen. On the other hand, I think we

[21:00] have to communicate clearly to our customers why we're killing a product, not just do it. Okay. So, and and hopefully our customers are getting more than one product or service from us. So if we're going to end one, it's important that we do take a lot make a you know make a lot of effort at customer retention. And the best way to do that is to make sure as much as possible that people understand the reason behind our decision. So if if a product or service is really draining

[21:36] the resources of the business to the point where it makes sense to kill the product that that message has to be com has to be conveyed to our customers and clients uh so they can understand. Now we don't necessarily have to give them you know hard numbers you know I'm I'm losing $100,000 a year or $200,000. No, we don't have to do that. But um we do need to explain to them how it's undermining the ability of our business to survive and that if we don't take this step um the entire business is likely to go away

[22:12] and that means loss of jobs to to the the employees that work there. It means a loss of all the products just not not not just the product um that you're planning on getting rid of. Um and and of course it means the loss of your business to you, right? So that needs to be conveyed to customers. Give them some time to digest that uh before you take the step. Okay, let's take a quick break and uh and and we'll be right back.

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[23:25] or visit magnumprops.com and uh yeah, you know, and because I started late, having technical difficulties. Okay, so all right. So um next on issues to think about um when you're when you're deciding whether to kill a product or service or not. So I I I suggested asking one question if you know if this this if this product

[24:00] didn't exist today would I build it or would I create it? Another question to ask is, does this align strategically with the future of my business? Right? So, it's possible that a particular product or service, it just no longer fits my your company's direction. So, I've been dealing with that issue uh this year um in in my primary business, which again is administrating uh trusts and probates. And the reality is handling small probates just no longer

[24:37] strategically align with where my business is going. Uh the fact of the matter is that it takes, you know, not literally the same amount of time to administrate a million half dollar probate as a $5 million one. But the $5 million probate does not take three times the time. um probably not even double the time when all is said and done. Um and and yet the fees are going to be the fees for a $5 million administration are probably going to be

[25:13] two double or maybe a little bit more than double the administration of a $1.5 million probate. So, you know, was moving forward um with with only a very few exceptions uh you know, strategically my company can no longer offer administration of probates under $5 million. And in fact, I I have a business associate uh he'll he'll actually be um doing a show on Trust and Estates Weekly soon. uh he specializes in that under that that $5 million and

[25:50] under probate uh world. He's built a whole business that's super efficient at handling them. And the reality is I'm better off referring people to him than I am doing it myself. He can do it much more quickly, much more efficiently. uh he can handle the customers better than I can um because he's got a whole setup for doing that. Whereas it's hard for me to justify the kind of attention that that I would give to on a small probate um when you know when it's

[26:27] almost as much as I would have to give on one that's you know three four you know times or more larger. Right? So, um, when you're looking at your product and service lineup, ask yourself the question, does this fit with my company's long-term direction? And if the answer is no, then it may be time to phase out that product. Okay, I use the term kill in the title to the episode, but you know, kill it is that's, you know, as I think about it, that's a little more marketing oriented,

[27:03] right? phase phase it out. Okay, that's probably a better way to think about it. So, um it could be, by the way, that a particular product attracts the wrong customers. So, um you know, if you've got five products that are targeted for uh luxury customers, for example, and then you have this other one that's that's targeted for mainstream customers, you're you're really splitting the attention of your business, right? And you'd be probably, although obviously it'll depend on the the details of your business, but you'd

[27:39] probably be better off focusing on the luxury products and really really giving that your all than splitting your attention. or if you think that you know the luxury end of the market is saturated. So then move your focus to to the mainstream product um and build on that and phase out the luxury products, right? But trying to uh cater to two different customer bases is especially for a small business, it's

[28:16] not only difficult. I it's it's it's going to absorb it's going to split your focus, absorb your time in a way where you're not going to be doing either one well. Okay? So even if it's a product that you've had for a long long time, maybe it's a founding product, if your business has gone in another direction and become successful doing that, it may be time to give up that legacy product, okay? Or that legacy service. So scaling a business, it sometimes requires saying no to yesterday's wins, okay? Just

[28:52] because something was successful 10, 20, 30 years ago doesn't mean that it's going to be successful 10, 20 or 30 years from now. Okay. So um now and there is a risk um um of um continuing to offer a product uh that's that's outdated or a service that doesn't align with your core business. So, um, often times legacy products rely on systems that in the end are pretty brittle because there's there's outdated

[29:28] technology involved or um they're no longer at the standards of of what people are demanding in the marketplace. So um and and so as the ability to support those products deteriorates or to offer those services deteriorates, so there can be damage to your rep to your company's reputation. Wow, they just don't you know they really don't provide the service that they used to, right? And you may not be able to, right? because the

[30:03] infrastructure necessary to provide excellent service may not exist anymore, right? So hanging on to those products even though you have a group of customers or clients that love them, they over time may become more and more disenchanted because you cannot provide them with the level of support uh for which your company was known. So other issues like security um you know regulatory compliance reliability all of these things if if you can't sustain them at the level that you used to can

[30:41] cause reputational risk. And so you may very well be better off phasing out those products and services so they don't damage the long-term reputation of your company. Right now again going back to what I was talking about before the break. So uh you know phasing them out is probably the best way to do so and explaining why they're being phased out. we can we can no longer offer the an appropriate level of security with these products or we we cannot offer you the level of

[31:17] reliability that we were able to in the past and here's why we can't get replacement parts or uh I don't know the amount of electricity that it consumes is is is too great or uh you know what whatever the reasons are for not for being concerned about um taking a hit to your company's reputation. Say those upfront. Okay, people, most people will respect that. They'll say, "Okay, look, he's telling me up front that that uh he doesn't want to make my life more difficult in the future

[31:52] because the reliability of this product won't be what I'm used to." Okay. Or, you know, so I I'm not going to be able to use it. Or maybe I can find a substitute. or maybe there's some other company. I'll take a chance with them. Right? But in the end, while you may lose some business uh because people will be upset that you've phased out a legacy product or you you've you've killed a service or whatever, if you can't offer it properly, the damage to maintaining it is likely to be much

[32:29] higher. Okay. So the the the uh the main thing then is how do you phase out or kill a product or service without killing the trust and reputation of your business. So I I've I mentioned this several times already. Communicate early, communicate clearly. uh have some empathy for how these passionate customers or clients feel about what it is that you're no longer going to be offering. Uh and and make it clear that

[33:04] look, you understand that this is something that was a part of their lives and the fact that you're not going to be able to offer it anymore, it will be viewed as in in a way as a dimmunition of the quality of your clients or customers lives. It's okay to acknowledge that as long as you give them the reason, right? And then offer them um mitigation paths or alternatives. So, I know you've grown to love, you know, this particular product. Like in my case, I know you know I know you you you like it when I handle a

[33:39] small probate because it's like you're you know, you're getting the same level of service as if you were, you know, two, three, five, 10 times the size of the estate. but here's here's an alternative that will work better for you. Uh and and and that's you know that's a way of um in essence killing a product without killing one's reputation. And then finally make sure there's a sun sunset timeline so people can understand how much you know how long they have to get used to this change in their lives. Okay. uh and and

[34:17] in the long run you want to you want to frame the decision as a reinvestment in serving customers better and better for the long term. Okay. So um you of of course not everybody will will um will see it that way. Um there are some people who no matter how good our intentions are um they're going to ascribe malign intentions to us. Okay, that's what they're going to do. That's what they're going to do. Um, you know, we we can't control what people think

[34:52] and feel. Um, but as long as we've done our homework, we've done our analysis, we've done our investigating, and we've put together a plan that takes into account not just how, you know, how we can help our customers potentially transition to something else, but also take into account how they feel about losing this particular product or service. Then that's the most we can do. and and hopefully, you know, we can still sleep well at night. Okay. So, you know, the the worst thing is to hang on

[35:27] to a product or service, you know, past its stale date as as we might say, because it's going to damage the long-term viability of our businesses. And that's not good for anybody uh in in involved. Again, it's not good for your clients and customers. It's not good for your employees. It's not good for you. So, those are my thoughts on killing a product, okay? Even when customers love it. Um, and I I thank you very much for joining me today. Uh, if you have questions, comments, criticisms, concerns, uh, uh, links to my social

[36:04] media will be in the show notes when this episode posts on YouTube. And if you like the show and you're watching it on Spotify or Apple Podcast, I'd sure appreciate it if you'd leave a a positive comment. it might catch the eye of another potential viewer and I I really would like to um have the opportunity to help uh more people. And let's see. So then just want to remind you um Thursdays, every other Thursday at 5:00 uh Pacific time is my show Jiggers's Place where we have a cocktail and a schmoo. So I hope

[36:40] you'll join me there as we head into the end of the week. And then uh next week I'll be back uh always with the regular full slate of shows. 10:00 a.m. Pacific Monday is Trust and Estates Weekly. 10:00 a.m. Tuesday Pacific time is Business Lessons from the Military. And 10:00 a.m. Wednesdays at 10 uh at 10 a.m. Pacific time. Wednesdays is the show that you're watching now, People Making Money. So, thanks again for joining me. Wishing you a wonderful rest of the day and signing off as I always do. Marie darling, you are my bell.

[37:18] Courage at all times, my friends.