“I can’t make a profit on my shop,” mentioned Jane to Abbey.
“What’s the problem?”
don’t know. I’ve lovely clothes. People stroll by the shop each
day, and some cease by to make a purchase order, however I simply can’t promote sufficient
“What have you done?” requested Abbey.
“I’m doing marketing campaigns, always offering discounts and coupons. With low prices, I do attract more customers, but with low margins, so no real profit. What do you suggest?”
“Stop selling rocks!”
“I’m not selling rocks, Abbey! I’m selling quality clothes!”
“You are selling clothing like you were selling rocks. You are selling a commodity. There’s nothing remarkable about your clothing. That’s why your business will fail.”
“You are being rude, Abbey!”
“No, I’m just being honest! Do you want help or not?”
“Please,” mentioned Jane, beginning to really feel depressed.
“Do you know what are the most common reasons new businesses don’t succeed, Jane?”
“Because they are selling rocks, I suppose…” Jane mentioned doubtfully.
Just like all different retailers on this similar road, all promoting
clothes. The ONLY motive individuals wish to purchase from you is for a reduction.
You are competing by value!”
“That’s a commodity, correct?”
“To achieve business, it’s essential to differentiate your self,” acknowledged Abbey.
“How? Please give me an example.”
Abbey paused for a second, pondering of a very good instance, and mentioned, “What does Nike sell?”
“Sports shoes and clothing,” Jane answered.
“No! Nike is NOT promoting you a shoe or a shirt.”
“What do you mean?”
“Nike is promoting you an emotion. When individuals purchase Nike Golf clothes, they’re shopping for the success of Tiger Woods. Nike sells the dream of being like Tiger.”
“That’s why they pay him millions?”
“Tiger makes an estimated $30 million per yr from Nike alone. Seems like loads, however now individuals pay over $90 for a $5 shirt. How do you just like the margins now?”
“Sounds like Nike is promoting diamonds!” mentioned Jane, scratching her head.
“Jane, your business is about to fail in case you are promoting simply one other product available in the market. BEFORE you begin a business, have a technique to place your ‘rocks’ above your neighbors’!”