Sunday, July 01, 2007
Why You MUST be Different if You Want to Make a Lot of Money!
I visited a Prospective Client (PC) who wanted me to write some press releases. One of the first questions I ask every prospective client is, "How are you different from your competition?"
PC answered, "Everybody's the same in our business. There are no differences."
Poor guy...
No meaningful difference means he'll have to compete mostly on price.
When you compete mostly on price your customers will be loyal to you mostly based on your price. When a lower price comes along, your customers will leave you.
Unless you have the buying power and distribution efficiency of Wal-Mart (and no one else does) you will lose the price battle, sooner or later.
What's interesting is that PC gave me a tour of his facility. I discovered several potential meaningful differences that he could exploit.
But alas, he didn't want to hear it. He knows better. He'd rather waste his money on Mindless Marketing to, in his words, "get our name out there."
If you want to "get your name out there," go ahead—if you feel you need the exercise. Buy a billboard and put your name on it and see what happens:
• Indifference among most viewers
• Confusion among potential customers
• Ridicule by media critics
• Gleeful snickering by your competitors
• Drained bank account
• Minimal sales
• Embarrassment
Now, I'm not saying you won't make a few sales using the "get your name out there" tactic.
There MIGHT be a few people who are chomping at the bit to buy what you have and you happened to be the first supplier they saw at the moment of decision.
But let's look at the odds of that happening: Slim at best.
So....
Unless you have a gazillion dollars to throw at the wall and see what sticks, if you use the "get your name out there" tactic you will be throwing most of your hard-earned dollars down the drain.
And you don't want to do that, do you?
Call me, Nick Nichols, at 702-227-5877 and I'll show you MUCH better ways to invest your advertising, promotion and PR dollars.
"NOT hiring Nick Nichols will cost you a LOT more than hiring him!"
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PC answered, "Everybody's the same in our business. There are no differences."
Poor guy...
No meaningful difference means he'll have to compete mostly on price.
When you compete mostly on price your customers will be loyal to you mostly based on your price. When a lower price comes along, your customers will leave you.
Unless you have the buying power and distribution efficiency of Wal-Mart (and no one else does) you will lose the price battle, sooner or later.
What's interesting is that PC gave me a tour of his facility. I discovered several potential meaningful differences that he could exploit.
But alas, he didn't want to hear it. He knows better. He'd rather waste his money on Mindless Marketing to, in his words, "get our name out there."
If you want to "get your name out there," go ahead—if you feel you need the exercise. Buy a billboard and put your name on it and see what happens:
• Indifference among most viewers
• Confusion among potential customers
• Ridicule by media critics
• Gleeful snickering by your competitors
• Drained bank account
• Minimal sales
• Embarrassment
Now, I'm not saying you won't make a few sales using the "get your name out there" tactic.
There MIGHT be a few people who are chomping at the bit to buy what you have and you happened to be the first supplier they saw at the moment of decision.
But let's look at the odds of that happening: Slim at best.
So....
Unless you have a gazillion dollars to throw at the wall and see what sticks, if you use the "get your name out there" tactic you will be throwing most of your hard-earned dollars down the drain.
And you don't want to do that, do you?
Call me, Nick Nichols, at 702-227-5877 and I'll show you MUCH better ways to invest your advertising, promotion and PR dollars.
"NOT hiring Nick Nichols will cost you a LOT more than hiring him!"
(0) comments
