The first problem is that the product should be suggested by the users, not thought up by the developers. If the users tell you what they need, they are more likely to buy it. This is called market-driven product development.

The second thing to keep in mind is that you will probably think your product is about three times as valuable as your competitor thinks your product is. And your customer will think your product is about a third as special as your competitor thinks your product is. So basically, your customer thinks your product is about one ninth as special and beautifully different as you do.

In my humble opinion, these are the mistakes the author made, not the ones he discussed in his piece.