### **What is Hassle Premium?** “Hassle” means some pain or some burning problem encountered by customers. “Premium” means the Gain/Profit earned by solving that burning problem or pain point of the customer. **Bigger the Hassle Solved, the Bigger the Premium.** Before looking at examples, find out the hassle that has not been solved by the market so far and identify the customer problem. Then brainstorm the technique which forces a customer to become dependent on you for solving a problem. # **Takes too Much Time to Complete** Is your customer taking too much time in buying your product or service? If yes, then find out the buying gap in your customer’s purchasing process and reduce the time of buying product. The moment you are able to save your customer’s time, he will feel connected with you. **Example:** With the coming of [magicbricks.com](http://magicbricks.com/) and [99acres.com](http://99acres.com/), almost 95 per cent filtering related to buying property can be done online. Now, you can customize your search for a real estate property on the basis of size, location, price, and project within 10-15 minutes. You just have to visit the project and buy the property. Similarly, [lenskart.com](http://lenskart.com/) started home service for testing your eyes. Their agent will visit your office or home, test your eyes, showcase the spectacles design & let you choose and finally, deliver the spectacles very next day at your doorstep. # **Reduce Your Customer Effort** Can you reduce your customer’s effort in buying the product or service? If a customer is putting in extra effort in buying your product or service, then it’s a problem that needs to be solved. **Examples:** **IRCTC Ticket Booking System:** Earlier people had to stand in long queues at the railway station to get a railway ticket booked. But after the launch of online ticketing by IRCTC, it is now super easy to book a ticket online or through IRCTC mobile app. **Taxi Service:** Earlier, people had to face inconvenience to hire a taxi. There were few taxies, and cab drivers use to charge as per their wish. The result was a hole in the pocket of the customer. But, with the launch of OLA and UBER, the taxi booking has become fast, easy, convenient and comfortable. Also, the number of people travelling by cars has increased significantly. # **Reduce the Complexity, Uncertainty or Confusion** The availability of many varieties of products and service has created a greater amount of confusion among the consumers. **Example:** Policy Bazaar: Earlier, people remained puzzled about which insurance policy is appropriate as per their need and in terms of price. Moreover, buying an insurance product involves financial calculations at which most of the consumers are not comfortable. But, with the launch of Policy Bazaar, all the confusion, and uncertainty related to choosing an insurance product was solved. It became more convenient to buy an insurance product as Policy Bazaar offers a neutral comparison of all policies to the customers at one platform. # **Can You Reduce Price too Much** If you are able to lower the price of a product for which a user had to pay a high price, then it can increase your market size. **Example:** **Xiaomi:** Knowing the fact that India is a price sensitive market, Xiaomi worked on price responsiveness. It captured the largest market share in India by offering high specifications at a lower price, which no other could replicate so far. **OYO Hotels:** They offered the experience and luxury of 4-Star Hotel at the price of 1-Star and 2-Star Hotels. In other words, a consumer can get a Hotel room worth Rs 4000 at Rs 1800-2000 only. # **Reduce Uncertainty with the Prior Experience** You can reduce the uncertainty in the mind of customers by giving him/her the prior experience of your offered product/service. For example, earlier when you hired a wedding organizer, he told you everything about the decoration, stage, lightings, etc. But still, you were not able to visualize it. So, nowadays wedding organizers give you a Virtual Reality experience of the planned wedding. This clears all confusion, uncertainty, and doubt about the planned wedding. Taking another example from the real estate world, nowadays builders also are using Virtual Reality or 3D animation to give their customers an experience of how their flat would look like. This clears all doubt and helps a customer in buying the flat. # **Focus on Priority** Your customer has many priorities but they have divided their priorities into small pieces due to work. Can you tell your customer to focus on the thing that gives you the highest growth? If yes, then you are relieving your customers from doing non-growth activities. For Example, Apple Inc. doesn’t manufacture its mobile own their own. Apple’s has outsourced its manufacturing part to Chinese company Foxconn. Apple just focuses all its energy on R&D, marketing, sales, design, and innovation. # **Finding Special Skilled Service** There are many skilled services that a customer cannot do on their own. These include the work of a carpenter, plumber, electrician, beauty parlor, etc. among others. So, if you are able to fill this gap and help customers in finding special skilled service, then you have solved a hassle. For Example, Urban Clap – India’s largest service marketplace – has emerged as one-stop-solution for all such skilled services, easing the lives of people as never before. Once you order a particular service you will get skilled manpower at your doorstep within 2 hours without any hassle. # **Vendor Management Services** You might be an expert in your field, but from where to find vendors for newer works like fitment of Air Conditioner, photo frame, furniture, etc. This raises the demand for vendor management services. But, it is difficult to find Business to Business (B2B) vendor. So, to fill this gap, companies like Justdial, [Sulekha.com](http://sulekha.com/), Indiamart, and [tradeindia.com](http://tradeindia.com/) came into the picture. These companies are primarily involved in providing B2B services. They all created a platform wherein one can find all vendors. This created convenience and solved a hassle. # **Required Expensive Equipment or Specialized Resources** It is not viable to purchase highly expensive machines for completing a small project or for a short period of time. For example, while building a house you may need services of Earth Mover, Road Roller, Backhoe Loader, Excavator, etc. But these are very expensive. So, as a businessman, you floated a ‘Specialized Equipment on Rent Service’ for the customer. This solved one of the hassles of your customer. Similarly, you can hire contractual manpower for a short period of time from a Recruitment Agency instead of wasting your time in searching, recruiting and training them. # **Daily Operational Convenience** You have to find out what inconvenience is being faced by your customers in activities related to daily operations. For example, sensing the problems being faced by women in urinating in public toilets available at public places like railway stations, some students of IIT Delhi developed a Stand and Pee device worth Rs 10. Taking another example, earlier the shape of Heinz Tomato Ketchup bottle was such that it caused a lot of inconvenience in applying the sauce on bread. Sensing the problem, Heinz brought Pichkoo Sauce which could be easily and conveniently applied on bread. So, find out which activity, product or service is causing inconvenience to the customers in daily operations. Find out the inconvenience which has been still left unsolved by the market. Solving these inconveniences will give you two things, (a) Large Premium, or (b) Large Market Share. If you sell at a lower price, you will get a big market share. And, if you sell at a high price, you will get a high premium. So, larger the hassle, larger the premium or larger market share.