$28 Ice Cream
"The biggest risk of racing to the bottom," says famed marketer Seth Godin, "is that you might win. Or worse, come in second."
Our family went on an ice cream run last night. We had several options to choose from, but ultimately, we selected one of the best shops in our city. Three of us got single scoops of ice cream in a cup, and one got a single scoop of ice cream in a standard cake cone. $28.
$28 for four scoops of ice cream?!?! Yeah, it was pretty awesome. I'd do it again in a heartbeat. The product was predictably phenomenal. The staff was patient with my kids and extraordinarily kind. The space was clean. We felt welcome. The vibe was fantastic.
We could have spent less money virtually any other place in our city, yet we willingly went there. Why? It's not about a race to the bottom......it's a race to excellence. This place practices excellence, and in return, people are willing to pay a premium price.
As you probably know, I think about this topic a lot. Northern Vessel is probably one of the highest-priced coffee shops in the entire state. Despite that, we were blessed yesterday with the opportunity to serve nearly 700 drinks. People surely don't come to NV for our unbeatable prices. I don't want to put words in people's mouths, but I hope they would say they come for some combination of world-class hospitality, consistently well-crafted drinks, some innovative practices, and high-energy vibes. It's not a race to the bottom....it's a race to excellence.
There are two ways businesses can create value for their customers and clients:
Reduce the price, thereby widening the gap between price and value.
Add more value, thereby widening the gap between price and value.
Both lead to the same theoretical place, but in practice, they couldn't be further apart. It takes no amount of excellence to cut prices or offer huge discounts. Even the worst product or service can be sold at a rock-bottom price. On the flip side, adding value requires that we inject excellence at some level (or levels) in the customer experience.
This message is two-fold. First, business owners, I hope you wholeheartedly reject the idea of racing to the bottom. You might just win, or worse, come in second. That race is a fast track to spinning your tires and burning out. Instead, add value, add value, add value. That can only be done through excellence.
Second, to the consumers (that's all of us!). Don't fall for the race to the bottom. Don't obsess about price. Yes, price matters, but it's not the be-all and end-all. Focus on value, and most often, the value that's created through excellence is where the real magic happens. That's the value that makes you smile, feel appreciated, gain confidence in your purchase decision, and know you're doing business with the right people. Seek out those interactions; turn them into relationships. It makes life richer!
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