Ever been to WPPI or PPE conventions and see rows and rows of companies offering the same products or services? Literally exactly the same. Here’s one – album companies.
Many less experienced companies differentiate themselves with price. “Come look at me! I produce the same thing for cheaper!”
“Forget that company, I’m even cheaper!”
Here’s the sad part: price is not scalable. If that is your unique selling proposition, then you might as well close your business. Pricing is a strategy in itself (I’m releasing an e-book on this on December 1, 2010).
So, how do you conquer ubiquity? And if you’re a photographer, most photos look equally “good” to the general public. Ack!
Starbucks
In an earlier article, I talked about how to brand yourself and find your unique selling proposition.
In a world saturated with coffee houses, how did Starbucks become the preferred choice? Service.
We’re in the people business serving coffee, not the coffee business serving people..
Howard Schultz
Pioneer and Chairman of Starbucks
It’s Not About the Coffee: Lessons on Putting People First from a Life at Starbucks by Howard Behar, Janet Goldstein, and Howard Schultz
HAPPY COMPANY
Zappos
Think about it. Every company sells the same shoes. Whether I buy a pair of Nike running shoes at Big 5 or XYZ Store, same.
So how can you be different when everything is the same? Service.
Zappos‘s website proclaimed that they’re a “service company that just happens to sell shoes.” And they back it up with their super service guarantees!
No loss there! So why not?
24 Hour Fitness
What makes a gym? Aside from the hunky guys or pretty girls, what else?
- Good equipment
- Big televisions
- Amenities / spa
- Showers
- Lockers
- Clean facilities
- Various locations
If LA Fitness or XYZ Fitness got all of the same things, how will they compete?
- Pricing – slash prices until they’re not profiting?
- Service.
My club knows me by name. Not by member number.
Every time I put my index finger on the scanner, they always say, “Have a good workout, Lawrence!”
“Why thank you person behind the counter!!” I always respond.
Your Company
The holidays are near. Take the extra step!
- Give your old and new clients a call
- Write them a card
- Check up on what they’re doing
- See what they have planned for the holidays
- As much as possible, avoid talking shop
It’s like the pleasant feeling of finding a mint on your hotel pillow. Customers will appreciate you.
Next steps…
- If you love good customer service, spread the love with Retweet and Facebook buttons below!
- Comment where you’ve experienced phenomenally good (or bad) customer service, so that we can all learn from you.
That was fun writing,
Lawrence Chan
P.S. It’s extra fun because I get to write about companies I love. Today, I am officially a Gold Level member at Starbucks! Now, let the free coffee begin!
P.P.S. I want to take this opportunity to thank all of you for your loyal readership! I hope I have been able to answer many of your questions or concerns regarding business marketing. I always love hearing the feedback via comments, facebook and twitter!
P.P.P.S. Here’s a lovely email I received a couple of days ago from Amy Zumwalt about business and pricing strategy that I wanted to share.
I have read your blog religiously and found it to be (duh) very helpful. I’m one of those artsy-fartsy, ADHD, “why doesnt my business take off just because i’m a badass artist” types.. the part between sales and the talent is completely greek to me.
I picked up my first dslr in september of 09. and just had my first wedding consultation this past sunday. (never really had a client find me online and meet me for a consult). but thanks to what i’ve read from you, along with my refusal to work for less than what I believe I’m worth, I booked the wedding on Sunday for 4800. totally did all that after your package blog and really felt confident about what i was offering even though 4800 for 6 hrs of photography and an engagement session is really high for my area.
I am so confident in my pricing and why I include what I include, that I was really able to come across as a vendor who knew what she would really want when all was said and done, even though [the bride] admittedly didnt know what she wanted yet. I felt like I was successful at making myself look trustworthy, knowledgeable, and worth the extra money – and I’M A TERRIBLE SALESPERSON!
I’m sort of bragging right now because (a) i’m stoked (b) no one around here charges that much (bc they’re SILLY) and (c) because I honestly feel like you are succeeding GREATLY at what you do. Not only are you a great marketing strategist, but you are great at teaching ME how to do what will work for me.
I hated at first that you wouldnt just come out and say “here, do this!”.. but of course that’s brilliant on your part.
You are an excellent leader. You should do seminars like … good at inspiring and informing other photographers. (wait.. do you already do them? if so, i’m embarrassed)
POINT…
thank you
and
you are VERY good at this.
and
the better you are at getting wedding photographers to charge for their work, the better life will be for all photographers. seriously, thanks. and more power to ya.
Basically I feel confident about my decisions because I feel like there’s Lawrence Chan out there in my corner! LOL
Haha Amy makes me sound like I’m a trainer for a professional boxer… Wait, that means I endorse fighting. :x
Read more about this e-book HERE.
Or …
- Pricing Strategy PDF
- Psychology of Choices
- Sample Price Sheet
- Pricing Strategy PDF
- Psychology of Choices
- Sample Price Sheet
- 1.5 Hour Consultation
- Skype Desktop Screen Share
- Market Research
- Help Customize Pricing
- Help Customize Packaging
- Demo Sales Tactics
I’m a camel. I love it when servers keep my beverage full. Extra gratuity!
Excellent points Lawrence. I consider myself a pretty average photographer, but by providing excellent service to my customers and being personable etc they are my biggest advertisers!
Doh! I was hoping to be the first post. However I’ll take a fast follower post anyday. Once again a nice good read Lawrence. I’ll have to introduce myself at WPPI. It’ll be my first time going. I’m sad that I didn’t get a chance to sign up for your master class (it sold out before I could register). But I want to shake your hand and thank you in person.
Lawrence, I may not be in photography business that long but my drycleaning business has grown and still growing… We’ve managed to keep the clients from the previous owner and continue to get new customers every day through word of mouth. We are not discount cleaners nor high end cleaners. We’ve made our cleaners your neighborhood cleaners where we know everyone by name, the name of their children and their dogs and as soon as they pull up, we have their clothes ready. Plus, they enjoy looking at my photographs on display. I’ve made my drycleaning store as my gallery as well and display albums I sell. Personal service is the our key.
Wonderful read Lawrence. Thanks! I’m currently reading “It’s Not About the Coffee” also hope to read “The Starbucks Experience.” Crazy how much there is to learn from just Starbucks alone :)
Reading this post makes me want to be a better person… Thanks for the words of wisdom my friend! retweeting this right now.
Great advice again Lawrence. I’m going to implement your advice right now.
Smugmug is one in the industry who excels in customer service. When I first launched my site with them a year and a half ago I constantly had questions and always got quick responses. They are not afraid to bend over backwards for their customers.
Thank you for sharing your wisdom with us, I am sure you are blessed !!!
I read the Zappos book, Delivering Happiness, and really took that idea to heart. Customer service is everything! People will pay more to work with someone they like.
I just got my gold card yesterday! Didn’t take me very long either. I think I have a problem… ;)
I’m so glad you shared the email from Amy. It’s so great to see people in this game for only a year taking your business advice and standing behind their pricing. Thank for making this community better Lawrence!
as former long-time employee of starbucks AND the container store (another place that puts customer service first first first and TRUSTS their customer), i feel like i have a good background in how it works. it makes me so much more sensitive to bad service, or even indifferent service.
at sb we used to get graded on whether or not we called customers by name. it was a HUGE deal. there is much to learn from businesses like that, and i’m glad to have them in my background. now to apply those lessons in my own new business. here we go!
ps i agree completely with amy’s email. well done.
Lawrence, how do you deal with clients who finalized their order, then changed their mind a day later because they want a different image on a custom designed product like cards/albums? In the name of good customer service, I change it for them with a smile but really, it’s a hassle and it usually happens when I finished the design. What are your strategies on preventing this from happening?
Setting the precedence. When people know ahead of time what to expect, they won’t usually cross the line. So tell them ahead of time (during consultation) that you do x number of revisions and etc.
What to say, great advice, as always! :) Thanks for that!!
You are so right about customer service. I changed to my husband’s dentist because they absolutely understand service. As far as dentists go, it’s a gorgeous contemporary office, great art, private treatment rooms (when most dentists are going “open concept” – hey, what makes them think I really WANT to hear the drill at the dentist chair 20 ft from mine???), plus complementary espressos/lattes, movies during treatment (on the tv in the ceiling), complementary hand or neck massage after treatment (even fillings), and yes, the staff all know my name.
My oh my. I want to switch dentists too. Where do I sign up? :)
I ordered a 5-pack of Kodak Portra 135 rolls. When I got my invoice I noticed it said 7 items (I only ordered three). They counted the 5 pack of Portra as 5 things, and I double checked the prices because I thought they were ripping me off. The cost of a 5-pack was the cost of 5 individual rolls, and I felt silly because I assumed there was some minuscule price break for ordering the 5-pack (wouldn’t you?).
I wrote Portra and asked if there was a quantity you could buy that would give you a price break, since Every Other Product Ever Made (the only examples I can think of are soda, bottled water, and chicken McNuggets) decreases in price per unit the more you buy. Their response:
We don’t offer discounts besides occasional coupons. You’re fortunate to have found it for $6 a roll.
That’s literally it. I was so pissed at how bad a response that was and I’ve been meaning to complain somewhere, but I don’t have a blog anymore. They could have… I mean, I dunno… but maybe they could have offered a discount, talked about buying from a certain supplier, or at the bare minimum told me when/where I could expect to see a coupon in the future. But they did less than the minimum by telling me I was fortunate enough to be able to purchase their product for the full retail price.
So yeah, bad customer service. Many, many more examples. Bad customer service is the #1 thing I hate in life I think.
GreAt article. Starbucks has it right – they are in the people business selling coffee. I am a photographer and i just recently started as a barista at starbucks and on my first few days i learnt more about business than any of the courses I took in college. i think starbucks is one of those few companies that genuinely put their customers first. All this business stuff is making sense since I ‘ve been able to see it being put into action.