Wednesday, December 02, 2009

It's the Package

from Craig Garber recently:

Every Sunday in my local paper, they have some kind of a
spreadsheet comparing the cost of a basket of groceries at
a few different supermarkets.

So one week, Publix might be the cheapest place to shop... and
another week it's Wal-Mart, and sometimes even the Super
Target gets in there. I don't know, I really don't pay too
much attention to the winner as much as I do the concept.

The thing is -- and these are the little kinds of pearls of
wisdom I'm always looking for -- it's very easy to get
shopped around for prices when you're selling the same
thing as everyone else is.

When you're a commodity, you can only charge "so much."

After all, a gallon of milk's a gallon of milk, regardless
of where you buy it, right?

Same thing with Navel Oranges, Oreo cookies, and Windex, for
the most part.

I mean, if you're a price shopper, it's kind of hard to
justify spending twice the price on Windex when you can
walk across the street and get it at half price, no?

But if you look at this from the outside in, this whole
concept is very revealing. Because what this tells you is
that if you want to charge (and collect) more money than
your competition, then you have to be selling something

This completely removes any ability to "compare" prices.

So for instance, if you're a music teacher, while most
people are offering Music Lessons, you can create a
"Professional Guitar School," or a blues-guitar school, or
a heavy metal guitar school where you "Make your students
into metal Gods" or something like that.

If you're a financial planner, and you're mired in mutual
funds and insurance products, you can sell a "Baby Boomer
Freedom Plan."

The point is, if you want to charge more money, the easiest
way of doing this is by offering something different than
what everyone else is offering.

After all, no matter how you cook 'em... eggs... will always be

If you enjoyed this, forward it on to a few of your friends
and business associates. And if you have any comments,
just leave them here on my blog:

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