Reformer product

A type of Next Leader product that reduces the benefits for the user while increasing benefits for the buyer compared to the industry Standard Leader product.

Example 1:

NorthEast Critical offers intravenous infusions administered by a nurse in the home. Its price is $300 a day, versus around $600 in a hospital.
(Year 1987-SIC 8082)

Explanation: This Reformer Next Leader Product does not offer all the Functional benefits of a hospital. However, because it brings medical care to the home, it is far more Convenient for the purchaser than is the hospital.

Example 2:

Cbeyond is a competitive local exchange carrier, selling its services over the internet to small business customers. For a base fee of $450 a month, a customer gets five voice lines, email addresses and 2000 long distance minutes. The service is easy and cheap to upgrade. The company believes it is getting a very high share of its customers' spending. The company saves small businesses about 25% over what they would spend with other providers.
(Year 2001-SIC 4813)

Explanation: Cbeyond offers a Reformer Next Leader Product that combines several existing Functions into a basic integrated package offering the customer more Convenience. The lower cost internet technology used is of somewhat lower quality, but it enables Cbeyond to save its customers about 25% over what they would spend by purchasing these services individually from other suppliers. In addition, the technology makes it easier, faster and cheaper to add new services.

Example 3:'s services significantly reduce the amount of time and money required to make travel arrangements. Approximately 7% of all corporate expenses are travel related, and can reduce these costs by 15%-20%, lessening overall expenses.'s product, Global Manager, is a web based travel procurement product that ensures that all travel purchased by employees of the company conforms to the company's policies on preferred travel suppliers and negotiated rates of purchase. It offers data analysis and reporting features that also limit maverick buying. Overall, the service reduces the number of steps and people involved in the purchase of the product.
(Year 1999-SIC 4729)

Explanation: reduces the order cycle time for both the corporation and its employees to make a purchase that conforms to corporate policies and enforces corporate rules. Its web-based presence allows world-wide, 24 hour access to an approved travel supplier that is able to offer travel arrangements in conformance with company policies. The product offers the customer more Convenience.

Example 4:

Packaged Ice has developed a $15,500 machine called the Ice Factory. It can cut a store's wholesale price nearly 20%, to 45 cents a bag. Typically, ice is made in huge sheets which then must be cubed, bagged, loaded on to trucks and delivered to grocery and convenience stores. Ice Factory does it all on the retailer's premises and uses technology to halt production when the ice freezer is full.
(Year 1999-SIC 3999)

Explanation: Ice Factory produces the same ice, but it does so on the customer's premises, reducing the customer's need to monitor and order its ice. Thus, it reduces the customer's order cycle time for the ice product.

Example 5:

On-line sales amount to only 1% of all retailing. The web works best as one more "touch point" for existing retailers such as Wal-Mart, rather than as a "pure play" like Long-time retailers like Wal-Mart and cataloger Lands' End prevailed on-line by winning trust and deftly handling returns. Among the "pure plays," only Amazon, eBay, and are of notable size, and only eBay, is consistently profitable.
(Year NL 406 2002 5399)

Explanation: Reformer Next Leader Products, such as Amazon and eBay, goaded the more savvy bricks and mortar retailers, such as Wal-Mart and Land's End, to develop their own on-line products.