products product product product is
product product our goal is to make the
best personal computers in the world and
to make products we are proud to sell
and would recommend to our family and
friends and we want to do that at the
lowest price as we can but I have to
tell you there’s some stuff in our
industry that we wouldn’t be proud to
ship that we wouldn’t be proud to
recommend to our family and friends and
we can’t do it we just can’t ship junk
so there’s there’s a there are
thresholds that we can’t cross because
of who we are but we want to make the
best personal computers in the industry
and we think there’s a very significant
slice of the industry that wants that
too and what you’ll find is our products
are usually not premium priced you go
you go and price out our competitors
products and you add the features that
you have to add to make them useful and
you’ll find in some cases they are more
expensive than our products the
difference is we don’t offer
stripped-down lousy products you know we
just don’t offer categories of products
like that but if you move those aside
and compare us with our competitors I
think we compare pretty favorably and a
lot of people have been doing that and
saying that now for the last 18 months
you think it’s still possible for an
upcoming filmmaker to go the route you
guys went and still be successful that’s
good question
make reservoir dogs’ I’m not even being
as smart as that was a kick-ass movie
all right you make a goddamn kickass
movie and you could take it all over the
planet earth not America enough Los
Angeles not New York the planet Earth
and everyone will know it there is a lot
more competition than there was when I
was you know like kicking around with El
Mariachi so you’ve got you know there’s
just a lot more to do
you got a lot more competition because
everybody’s got a camera now and
everybody can edit and it’s it’s just
it’s tough I don’t know what the state
of independent filmmaking changes at the
same time though yeah there’s a lot more
to competition but also those crappy
movies aren’t competition it thing is
like dynamite yeah you know yeah there’s
a lot of you there a lot of people out
there doing stuff but if you know it’s
like waves on the beach alright you make
something you take a piece that nitro
that you throw in an audience’s lap ya
know people notice I think the thing the
big differentiator with our company
versus the other companies out there is
you know they spend millions and
millions of dollars on product
development to make a product for one
cent they want to make the cheapest
product as humanly possible and they
don’t really look at the health
ramifications or the healthiness of it
it’s really just how cheap and
high-volume and we’re exactly the
opposite and so we spend a lot of money
on product development on high
performance on the best ingredients the
healthiest ingredients but really honing
in on performance we don’t believe
there’s a tension between product and
business we believe there’s a staging
which is in this industry you don’t have
a business until you have a product and
in particular you don’t have a business
until you have a product that a lot of
people want we have this concept we use
a term product market fit which is
basically you have a product that the
market wants and you can tell because
the market is pulling the product and
until you have that time spent building
the business around to the product is
pointless because it’s not going to go
anywhere like best-case is gonna be a
zombie there’s a lot of companies are in
the valley a lot of companies the valley
and elsewhere that are you know 25 50 75
people they’ve got a product nobody
really wants it they sell a few every
quarter and they kind of eke out a
living and they go on for year after
year after year after year after year
and they never get anywhere they never
go public they never get bought and
people just basically collect salaries
and that’s not that’s like not what we
want to do and that’s not what’s super
you know super high potential
entrepreneurs want to do so only
basically you say is if you want to
build a big success you’ve got to nail
the product you got to like it’s got to
be a killer product it’s got to be
something that has product market fit
when you have product market fit then
you build a company around
right so then you build a Salesforce
then you start doing marketing and then
you start doing business deals then you
start expanding internationally and you
do all this other stuff and it’s at that
point where you start to apply a lot of
capital and you build a big board and
you start hiring executives and doing
all this stuff but a full executive team
with the Salesforce and all that stuff
before you have the killer product is a
complete waste of time we probably spend
less money in marketing than any company
our size in the world we have a tiny
marketing department and everyone quite
oracles you know all that sales and
marketing we are the largest employer of
MIT and Caltech engineers in the world
we are the largest employer of Stanford
and Harvard and CMU mathematicians in
the world
we are overwhelmingly dominated by
engineering at Oracle the idea that we
are a sales and marketing company which
people will sometimes will write about
quite often is ludicrous on the face of
it because all of our customers who buy
Oracle already happened and if you
already have Oracle there’s nothing a
salesman can tell you about how great it
is to make you buy more GE already uses
it the defense department always early
is that all of our customers
ninety-eight percent of our sales or
more are to existing Oracle customers if
we don’t have the right product people
don’t buy more we will before the
acquisition we spend three billion
dollars a year in software engineering
the company is all about engineering
it’s the only thing that works most
businesses are the same whether you’re
selling
energy products or whether any consumer
products if it’s useful to people the
rest is just business so if you find
something or invent something that’s
really useful
at that point it’s really common
whatever you’re selling
process is not that different
in our processes maybe a little bit
different because we really don’t have
em b a.type processing we basically
common sense you know we look at
businesses really in a simple way you
make good stuff and you solid instead of
you know all the Python in words which I
really don’t understand like
awareness and brand equity and
all the fancy terminologies people use
that they don’t have proper
we what we did was they simply simply
stick to fundamental which is they make
a really good product
and 80% of marketing is making a really
good product
you go out there and if people like it
and they agree with you that they buy
actually you’ll find most of the
products that they say are good our
margin
most of the folks that come up with
products usually you have some kind of a
gimmick
in other words gee let’s make it pink if
it’s to win in let’s think
what’s his name famous person endorsing
products themselves and then they say
100 it’s a good product well my question
is do you use it if you’re gonna go out
there and sell it you use it yourself
does your family use it and if they
don’t why you selling really you’ll find
most of the fellows that say we have
great products we didn’t get success if
they really don’t use the product they
think everybody else should superior
there’s a compromise amongst people
about the quality of what they sell
these also misunderstood
in other words quality starts with if a
customer doesn’t need it
he doesn’t provide something
they’re gonna pay for
are we have different technical touches
in my are technical terms and uh you
know everybody understands what that is
do you have a slam-dunk product or do
you have a good product for us we get
pitched several hours a week
if it’s a good product we don’t go out
there and sell it it’s gotta be Splenda
it’s gotta be where
nobody over refuses and then you have a
hard time
the law is really they don’t have the
promise definition of a good product it
will do what
now there’s some amount of execution
I would say that
if you don’t have a great product
any amount of execution is going to only
buy you a little time that everybody
will figure out this is not that good
anymore
I think no it could be I mean the point
is is that there’s there’s there’s
there’s the the integrity and honesty as
far as I’m concerned goes without saying
and you could push that to one side at
the moment because you can be honest and
have a high integrity but if you’ve got
a lousy product your prices are too high
it’s irrelevant so it’s a mixture of of
spotting opportunities
I mean targeting from the top of your
own business spotting opportunities
products services that you want to offer
that are that do bring value to whomever
you’re going to sell them to and then
having the the the the the nouse to go
and sell them
I mean McGann this young man’s question
over there it’s very very similar you
know I get asked a lot in the a similar
question in universities and places like
this Duke but just jump out of bed one
Monday morning and I’m want to be
Richard Branson I’m gonna start an
airline like that I want to start an
airline tomorrow morning you know now
total nonsense well if you’ve got any
money no but honest on airline tomorrow
morning you say there’s a certain
realism as to what as to what one month
needs to do secondly you’ve got to look
at you’ve got a you’ve got to also have
a realistic point of view I knew I’m
starting I’ve got a new business what do
I offer somebody what do I offer my
potential customer what am i got that
they can’t already get from 20 or 30 or
40 or 50 other people because if I’m not
offering anything different then I’ve
got a tough job ahead of me and I think
you have to continually test yourself on
that basis I used to test myself with
products is this a good product or not
well is anybody else got one or is it
the same as what other people have got
what half the price does it do more as
it got different
features on it is it look better if the
market ready for it that’s the test and
from my point of view and manone lee
teuk from my experience my products did
the talking you know I could be the
greatest salesman in the world the most
charming person in the world whatever
you want to be you could advertise and
do whatever you want with the product
sucks then you got no business so what
we grew up with was Mad Men Mad Men was
advertising and marketing with the same
thing if you spend enough money on
advertising you would succeed but now
that’s over
so what we’re left with is the product
is the marketing look we’ve got Google
we’ve got Facebook we’ve got eBay we got
Amazon none of them spend any money on
advertising they spent all their money
on making something people will talk
about so if you think about the Leaning
Tower of Pisa now they didn’t make it
lean on purpose but if you ever go to
Pisa there’s tons of tourists there
because if you see the Leaning Tower you
can talk about it when you go home
right well it doesn’t matter that just a
hundred miles away is the Parthenon
which is one of the most beautiful
buildings in the world it’s subtle it’s
not easy to talk about so the question
is are you gonna build something that is
interesting that’s Leaning Tower of Pisa
are you gonna make a product or service
that when people are done using it they
can’t help but tell their friends about
entrepreneurship is taught as courses in
all the colleges and usually it’s a
business level course so you’ve got all
these business guys that oh my gosh if I
write some ideas down on paper
that’s how you go about it starting a
company and all right my principle is
know so many people in Silicon Valley
got used to write ideas down on paper
and then try to get some money practice
some might ready get some money like we
can just buy the engineering for it no I
like to type entrepreneurship that has
actually created working models here is
an example of something that works the
way we want it and we built it and we’ve
got the the talented the talented
technical people that know how to do it
and I think it should get to that phase
so the Entrepreneurship it’s a
combination of the business and the
technical doers the technology people I
see
the company as a part of my family I
guess I see our cars like my children
didn’t want me I have their two sons
which I love very very very much but
also the cars are my baby somehow I
really care
it’s like a part of myself I don’t I
don’t separate my own being from the
company or the cause we are really
connected together it’s my life I don’t
see my work as work I don’t see this who
I am what I do thank you guys so much
for watching I hope you enjoyed for me
creating great products is about putting
more of your love and effort and heart
into it you need to put a
disproportionate amount of time that
then makes sense into your product to
make it great when I put love and energy
and effort into my youtube channel
especially at the start I put way more
time and love and heart and energy into
it then was worth it than anybody would
have looked at and said you know they
would say you’re spending too much time
on this this is a waste of your time and
so that’s what you need to do you do it
because you love it and so if you can do
that if you can you know wake up
thinking about your product and go to
sleep thinking about your product and
pour so much love and attention into
your product every day because you want
to create it because it’s gonna help you
in your life and you know it’s gonna
help others and you start really feeling
proud of what you’re making and the
effort you’re putting in that’s when you
start to create great products so thank
you so much for watching I’d love to
know how you create great products leave
it in the comments below I’d also love
to know which of the clips that you saw
here today had the biggest impact on you
and what change you’re gonna make in
your business leave in the comments I’ll
join the discussion thank you guys so
much for watching and continue to
believe and I’ll see you soon
product product our goal is to make the
best personal computers in the world and
to make products we are proud to sell
and would recommend to our family and
friends and we want to do that at the
lowest price as we can but I have to
tell you there’s some stuff in our
industry that we wouldn’t be proud to
ship that we wouldn’t be proud to
recommend to our family and friends and
we can’t do it we just can’t ship junk
so there’s there’s a there are
thresholds that we can’t cross because
of who we are but we want to make the
best personal computers in the industry
and we think there’s a very significant
slice of the industry that wants that
too and what you’ll find is our products
are usually not premium priced you go
you go and price out our competitors
products and you add the features that
you have to add to make them useful and
you’ll find in some cases they are more
expensive than our products the
difference is we don’t offer
stripped-down lousy products you know we
just don’t offer categories of products
like that but if you move those aside
and compare us with our competitors I
think we compare pretty favorably and a
lot of people have been doing that and
saying that now for the last 18 months
you think it’s still possible for an
upcoming filmmaker to go the route you
guys went and still be successful that’s
good question
make reservoir dogs’ I’m not even being
as smart as that was a kick-ass movie
all right you make a goddamn kickass
movie and you could take it all over the
planet earth not America enough Los
Angeles not New York the planet Earth
and everyone will know it there is a lot
more competition than there was when I
was you know like kicking around with El
Mariachi so you’ve got you know there’s
just a lot more to do
you got a lot more competition because
everybody’s got a camera now and
everybody can edit and it’s it’s just
it’s tough I don’t know what the state
of independent filmmaking changes at the
same time though yeah there’s a lot more
to competition but also those crappy
movies aren’t competition it thing is
like dynamite yeah you know yeah there’s
a lot of you there a lot of people out
there doing stuff but if you know it’s
like waves on the beach alright you make
something you take a piece that nitro
that you throw in an audience’s lap ya
know people notice I think the thing the
big differentiator with our company
versus the other companies out there is
you know they spend millions and
millions of dollars on product
development to make a product for one
cent they want to make the cheapest
product as humanly possible and they
don’t really look at the health
ramifications or the healthiness of it
it’s really just how cheap and
high-volume and we’re exactly the
opposite and so we spend a lot of money
on product development on high
performance on the best ingredients the
healthiest ingredients but really honing
in on performance we don’t believe
there’s a tension between product and
business we believe there’s a staging
which is in this industry you don’t have
a business until you have a product and
in particular you don’t have a business
until you have a product that a lot of
people want we have this concept we use
a term product market fit which is
basically you have a product that the
market wants and you can tell because
the market is pulling the product and
until you have that time spent building
the business around to the product is
pointless because it’s not going to go
anywhere like best-case is gonna be a
zombie there’s a lot of companies are in
the valley a lot of companies the valley
and elsewhere that are you know 25 50 75
people they’ve got a product nobody
really wants it they sell a few every
quarter and they kind of eke out a
living and they go on for year after
year after year after year after year
and they never get anywhere they never
go public they never get bought and
people just basically collect salaries
and that’s not that’s like not what we
want to do and that’s not what’s super
you know super high potential
entrepreneurs want to do so only
basically you say is if you want to
build a big success you’ve got to nail
the product you got to like it’s got to
be a killer product it’s got to be
something that has product market fit
when you have product market fit then
you build a company around
right so then you build a Salesforce
then you start doing marketing and then
you start doing business deals then you
start expanding internationally and you
do all this other stuff and it’s at that
point where you start to apply a lot of
capital and you build a big board and
you start hiring executives and doing
all this stuff but a full executive team
with the Salesforce and all that stuff
before you have the killer product is a
complete waste of time we probably spend
less money in marketing than any company
our size in the world we have a tiny
marketing department and everyone quite
oracles you know all that sales and
marketing we are the largest employer of
MIT and Caltech engineers in the world
we are the largest employer of Stanford
and Harvard and CMU mathematicians in
the world
we are overwhelmingly dominated by
engineering at Oracle the idea that we
are a sales and marketing company which
people will sometimes will write about
quite often is ludicrous on the face of
it because all of our customers who buy
Oracle already happened and if you
already have Oracle there’s nothing a
salesman can tell you about how great it
is to make you buy more GE already uses
it the defense department always early
is that all of our customers
ninety-eight percent of our sales or
more are to existing Oracle customers if
we don’t have the right product people
don’t buy more we will before the
acquisition we spend three billion
dollars a year in software engineering
the company is all about engineering
it’s the only thing that works most
businesses are the same whether you’re
selling
energy products or whether any consumer
products if it’s useful to people the
rest is just business so if you find
something or invent something that’s
really useful
at that point it’s really common
whatever you’re selling
process is not that different
in our processes maybe a little bit
different because we really don’t have
em b a.type processing we basically
common sense you know we look at
businesses really in a simple way you
make good stuff and you solid instead of
you know all the Python in words which I
really don’t understand like
awareness and brand equity and
all the fancy terminologies people use
that they don’t have proper
we what we did was they simply simply
stick to fundamental which is they make
a really good product
and 80% of marketing is making a really
good product
you go out there and if people like it
and they agree with you that they buy
actually you’ll find most of the
products that they say are good our
margin
most of the folks that come up with
products usually you have some kind of a
gimmick
in other words gee let’s make it pink if
it’s to win in let’s think
what’s his name famous person endorsing
products themselves and then they say
100 it’s a good product well my question
is do you use it if you’re gonna go out
there and sell it you use it yourself
does your family use it and if they
don’t why you selling really you’ll find
most of the fellows that say we have
great products we didn’t get success if
they really don’t use the product they
think everybody else should superior
there’s a compromise amongst people
about the quality of what they sell
these also misunderstood
in other words quality starts with if a
customer doesn’t need it
he doesn’t provide something
they’re gonna pay for
are we have different technical touches
in my are technical terms and uh you
know everybody understands what that is
do you have a slam-dunk product or do
you have a good product for us we get
pitched several hours a week
if it’s a good product we don’t go out
there and sell it it’s gotta be Splenda
it’s gotta be where
nobody over refuses and then you have a
hard time
the law is really they don’t have the
promise definition of a good product it
will do what
now there’s some amount of execution
I would say that
if you don’t have a great product
any amount of execution is going to only
buy you a little time that everybody
will figure out this is not that good
anymore
I think no it could be I mean the point
is is that there’s there’s there’s
there’s the the integrity and honesty as
far as I’m concerned goes without saying
and you could push that to one side at
the moment because you can be honest and
have a high integrity but if you’ve got
a lousy product your prices are too high
it’s irrelevant so it’s a mixture of of
spotting opportunities
I mean targeting from the top of your
own business spotting opportunities
products services that you want to offer
that are that do bring value to whomever
you’re going to sell them to and then
having the the the the the nouse to go
and sell them
I mean McGann this young man’s question
over there it’s very very similar you
know I get asked a lot in the a similar
question in universities and places like
this Duke but just jump out of bed one
Monday morning and I’m want to be
Richard Branson I’m gonna start an
airline like that I want to start an
airline tomorrow morning you know now
total nonsense well if you’ve got any
money no but honest on airline tomorrow
morning you say there’s a certain
realism as to what as to what one month
needs to do secondly you’ve got to look
at you’ve got a you’ve got to also have
a realistic point of view I knew I’m
starting I’ve got a new business what do
I offer somebody what do I offer my
potential customer what am i got that
they can’t already get from 20 or 30 or
40 or 50 other people because if I’m not
offering anything different then I’ve
got a tough job ahead of me and I think
you have to continually test yourself on
that basis I used to test myself with
products is this a good product or not
well is anybody else got one or is it
the same as what other people have got
what half the price does it do more as
it got different
features on it is it look better if the
market ready for it that’s the test and
from my point of view and manone lee
teuk from my experience my products did
the talking you know I could be the
greatest salesman in the world the most
charming person in the world whatever
you want to be you could advertise and
do whatever you want with the product
sucks then you got no business so what
we grew up with was Mad Men Mad Men was
advertising and marketing with the same
thing if you spend enough money on
advertising you would succeed but now
that’s over
so what we’re left with is the product
is the marketing look we’ve got Google
we’ve got Facebook we’ve got eBay we got
Amazon none of them spend any money on
advertising they spent all their money
on making something people will talk
about so if you think about the Leaning
Tower of Pisa now they didn’t make it
lean on purpose but if you ever go to
Pisa there’s tons of tourists there
because if you see the Leaning Tower you
can talk about it when you go home
right well it doesn’t matter that just a
hundred miles away is the Parthenon
which is one of the most beautiful
buildings in the world it’s subtle it’s
not easy to talk about so the question
is are you gonna build something that is
interesting that’s Leaning Tower of Pisa
are you gonna make a product or service
that when people are done using it they
can’t help but tell their friends about
entrepreneurship is taught as courses in
all the colleges and usually it’s a
business level course so you’ve got all
these business guys that oh my gosh if I
write some ideas down on paper
that’s how you go about it starting a
company and all right my principle is
know so many people in Silicon Valley
got used to write ideas down on paper
and then try to get some money practice
some might ready get some money like we
can just buy the engineering for it no I
like to type entrepreneurship that has
actually created working models here is
an example of something that works the
way we want it and we built it and we’ve
got the the talented the talented
technical people that know how to do it
and I think it should get to that phase
so the Entrepreneurship it’s a
combination of the business and the
technical doers the technology people I
see
the company as a part of my family I
guess I see our cars like my children
didn’t want me I have their two sons
which I love very very very much but
also the cars are my baby somehow I
really care
it’s like a part of myself I don’t I
don’t separate my own being from the
company or the cause we are really
connected together it’s my life I don’t
see my work as work I don’t see this who
I am what I do thank you guys so much
for watching I hope you enjoyed for me
creating great products is about putting
more of your love and effort and heart
into it you need to put a
disproportionate amount of time that
then makes sense into your product to
make it great when I put love and energy
and effort into my youtube channel
especially at the start I put way more
time and love and heart and energy into
it then was worth it than anybody would
have looked at and said you know they
would say you’re spending too much time
on this this is a waste of your time and
so that’s what you need to do you do it
because you love it and so if you can do
that if you can you know wake up
thinking about your product and go to
sleep thinking about your product and
pour so much love and attention into
your product every day because you want
to create it because it’s gonna help you
in your life and you know it’s gonna
help others and you start really feeling
proud of what you’re making and the
effort you’re putting in that’s when you
start to create great products so thank
you so much for watching I’d love to
know how you create great products leave
it in the comments below I’d also love
to know which of the clips that you saw
here today had the biggest impact on you
and what change you’re gonna make in
your business leave in the comments I’ll
join the discussion thank you guys so
much for watching and continue to
believe and I’ll see you soon
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