Most products or services are like carrots - a commodity. From time to time, a company that has a vision, a creativity or just a chance, takes a commodity and turns it into a differentiated and value-added product ... and the customers become dependent on it.
For an example of a differentiated value-added product, let's talk about carrots. Specifically, these miniature, peeled, ready-to-eat carrot bags are sold at the supermarket at a significantly higher price than normal carrots, "peel-and-cut" them.
For those of us who follow a healthy diet (trying to control my size here!), These carrots have become almost as crazy as a bag of salty potato chips, and once I've become addicted to them, I found it much more convenient that they were unpeeled and cut, that the extra cost was offset by the ease of use.
These carrots are no longer normal vegetables. By being cleaned, cut and peeled, they were turned into a healthy snack. They do not compete with broccoli and green peppers for a spot in your salad; they compete with chips and popcorn for your munchie cravings.
Consider the products and services you sell. What can you do to make your customers count on your products and services? How can you add value and differentiate them as carrots?
Can you create a "Club" that offers additional services? If you do it right, you can even charge membership, as Amazon does with Prime.)
Can you give them any additional advice or personalized service they can not get elsewhere?
Can you give them favorite appointments, better places, the desired table, the little "free" gift? (Like the car dealer who washes your car for free? Like the tire shop that will check inflation levels for free?)
Online retailers have stumbled upon themselves to offer value-added services at little or no cost, working to make us addicted to their price, convenience and selection. This battle is intensifying and continues to put more and more brick and mortar stores out of business, unless they fight back aggressively.
Unless you know how to make your customers dependent on your business, your products and services look like these undifferentiated carrot bunches - yes, they're great as cooking ingredients, but not as good as snacks. Today, no matter what you sell, your customers want more - more convenience, more speed, more style and more security, and they are often willing to pay more for these "mores" if you can understand them.
For an example of a differentiated value-added product, let's talk about carrots. Specifically, these miniature, peeled, ready-to-eat carrot bags are sold at the supermarket at a significantly higher price than normal carrots, "peel-and-cut" them.
For those of us who follow a healthy diet (trying to control my size here!), These carrots have become almost as crazy as a bag of salty potato chips, and once I've become addicted to them, I found it much more convenient that they were unpeeled and cut, that the extra cost was offset by the ease of use.
These carrots are no longer normal vegetables. By being cleaned, cut and peeled, they were turned into a healthy snack. They do not compete with broccoli and green peppers for a spot in your salad; they compete with chips and popcorn for your munchie cravings.
Consider the products and services you sell. What can you do to make your customers count on your products and services? How can you add value and differentiate them as carrots?
Can you create a "Club" that offers additional services? If you do it right, you can even charge membership, as Amazon does with Prime.)
Can you give them any additional advice or personalized service they can not get elsewhere?
Can you give them favorite appointments, better places, the desired table, the little "free" gift? (Like the car dealer who washes your car for free? Like the tire shop that will check inflation levels for free?)
Online retailers have stumbled upon themselves to offer value-added services at little or no cost, working to make us addicted to their price, convenience and selection. This battle is intensifying and continues to put more and more brick and mortar stores out of business, unless they fight back aggressively.
Unless you know how to make your customers dependent on your business, your products and services look like these undifferentiated carrot bunches - yes, they're great as cooking ingredients, but not as good as snacks. Today, no matter what you sell, your customers want more - more convenience, more speed, more style and more security, and they are often willing to pay more for these "mores" if you can understand them.
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