FuelNet presents a case study on how one growing business attracted new customers by moving to a new product line.

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PROBLEM: Jonathan Thorne, founder of Silverglide Surgical Technologies in Boulder, Colo., had developed what he thought was a blockbuster product. He was so sure the reusable, nonstick surgical probe would be ideal for the delicate work of plastic surgery that he launched the device in five sizes as part of his business development strategy. But he managed to generate only a dismal $5,577 in the first seven months of sales calls and trade shows. Plan A wasn’t working. When Thorne took a careful look at his target customers, he realized the probe was a tool that most surgeons hadn’t used before, and changing their behavior was no easy task. What’s more, few distributors wanted to bother with his limited and reusable product line. It was time to think about Plan B.

SOLUTION: Before Thorne made any drastic changes, he reached out to his customers. He learned that sticking is also a problem with forceps. Unlike probes, forceps are used in nearly every electrosurgical procedure across a wide range of specialties, including neurosurgery, where sticking is a serious concern. Thorne moved from probes to forceps, from plastic surgeons to neurosurgeons, and on to a wider range of nonstick surgical instruments.

The nonstick forceps were able to garner premium pricing, and with the range of sizes required, the money generated from each sale was attractive. Suddenly, distributors had reason to energetically sell the Silverglide line. With sales growing, even at sharply higher pricing, Silverglide’s cash flow soon turned positive. Four years later, Thorne sold the business to a diversified medical technology company for nearly 15 times revenue. Thorne’s openness to a better Plan B — and then an even better Plan C — provided the traction his company needed.

— John Mullins and Randy Komisar, coauthors of Getting to Plan B: Breaking Through to a Better Business Model

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