Monday July 10, 2017
12:52 PM Pacific
Good afternoon [FNAME:filter:defaultvalue(Friend)],
Have you been following the scandalous comparison of Audrey Hepburn and Lady Gaga as they fight over market share and profit for Tiffany & Company?
It’s a classic “race to the bottom” story!
Over the past 5 years, profits have been down over at Tiffany as their product line moved from ultra-exclusive hard-to-afford into almost 50% being ‘costume’ pieces priced where us slug-heads can afford it.
Contrary to popular thought – racing to undermine the price of the competitor or…
racing to the “larger tent” to expand the customer base…
both lead to few profits.
And, if you’re in business to make wads of moolah, then this is the wrong approach.
So, what can you do instead?
(just a second and we’ll get into that)
Before we talk about what to do, let’s lay out the primary reasons you’re tempted to race to the bottom:
1. Commodities – you think there’s no difference between what you sell and what your competitor sells, so the differentiation must be in price.
2. Neediness – you’re business isn’t chock full of the “right” customers and you’re not seeing the freedom you were promised as a business owner. And, because you so badly want to “scale” your business – you’re willing to accept less than ideal customers.
I know – it’s a tough pill to swallow, but it’s true none the less…
Here’s what you can do:
A. Find the ultra-exclusive experience and social cachet your “ideal” customer is willing to buy – no questions asked and without any regard to price
B. Structure your “deal” in a way that cannot EVER be compared to your competition
C. Launch a tried and true direct response campaign that spins off highly-qualified prospects and blends them into your list of “ideal” customers that you’ll need to pitch the exclusive offer
That’s what we do for our clients and it’s working like gangbusters!
1:10 PM Pacific