Positioning and domination is a result of being UNIQUE.
Let’s look at three companies that have done this well:
1. Whole Foods – they recognized the growing trend of natural food enthusiasts (target market) and decided to take up a position in that space.
2. Starbucks – They created a unique experience around coffee—a commodity that has been around for thousands of years.
3. Harley-Davidson -Whether you’re a biker or not, you must agree that there’s a unique experience around owning and riding a hog! That could be good or bad depending on your view! LOL!
Being unique means you can charge more.
Why do you need to charge more? Because working 24/7 just to barely scrape by is not a phenomenal life. Remember, the only reason your business exists is to help you achieve your life goals. So here’s where the rubber meets the road: those who don’t shop at Whole Foods is because of the “cost.” I personally love to shop at Whole Foods when I am home because they offer the natural foods that I want. I pay more, but I get what I want all at the same place. My wife points out that I could get certain items cheaper at other places, but I’m not interested in going to three different stores to get what I need, and none of the other stores have the natural food selection that I want.
How much can you spend on a cup of coffee at Starbucks?
I decided to find out, so I conducted an informal marketing survey. As I traveled around the country, I would go into Starbucks, walk up to the counter and say, “I want to buy your most expensive cup of coffee.” Almost always without hesitation (but with a curious look on their faces), they would typically offer a Venti Salted Mocha Frappuccino or something like that. “How much is that?” I asked. “$6.25.” they responded.
Then I say, “Can you make it more expensive?”
“What do you mean?” they ask.
“I want to buy the most expensive coffee I can,” I insist. “For example, could you add some shots?”
“Sure.”
“How many can you add?”
“As many as you want.”
“Yeah, but the Venti cup only holds a certain amount, right?”
“Right.”
So, they figure that up. Then almost without fail, another employee comes along and says “You could add some flavors.” They are quick to remind me that I won’t be able to drink it and I assure them that’s okay because I don’t want to drink it, I just want to get the most expensive cup of coffee I can find.
The highest price I have been able to get so far is $43.27!
Don’t worry, I didn’t pay that, in fact each episode ends the same way, “Never mind, I’ll just have a tall cappuccino.” They didn’t laugh either. But I do always gave them a big tip for playing along, and they liked that. I recently came across a video of a guy who did the same experiment with Starbucks. He created a great video of the interaction and the actual sales receipt!
Harley-Davidson isn’t concerned about being the cheapest bike around, right? They have created such an experience around their brand that people are willing to pay a high price to own one. Recently we held a leadership retreat in Colorado Springs, and a couple who are in our coaching program rode their Harley all the way from Florida. They built a 17-day vacation around the event. I went outside to see their bike, and the husband was beaming as he showed it off. It had a nice trailer, and he explained how it was top-of-the-line and how it had all the bells and whistles.
“How much you got in this bike?” I asked. “Sixty-five grand,” he responded. He explained that the trailer had to be custom painted to match the bike and so on.
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