Last week, I did a shameful thing.
I made reservations using booking.com.
Saved $1200 for the exact same stay,
on the exact same block,
with my PREFERRED hotel brand.
As a consumer,
you can give me a proverbial high five.
As the co-host of an event at the hotel that REFUSED to come down on their rates despite my spending THOUSANDS of dollars with them annually…
you can even call my decision noble.
But as an entrepreneur,
I know that I just participated a system that is creating a PRISON of sorts for other businesses.
Booking.com, TAKL.com, Angie’s List, Amazon, Trivago…. they all do the same thing. FORCING competitors to stand shoulder to shoulder on their digital platform, they deliberately commoditize products and services, and DRAMATICALLY
SYSTEMATICALLY
drive down prices.
A price pageant,
but FAR more degrading.
Fine for consumers, I guess.
But debilitating, degrading and destructive for business owners.
For the record,
I recommend you NEVER EVER compete in this price pageantry…
where you stand on stage,
trying to look pretty,
while NOT being able to speak on your own behalf
to share WHY they should “pick you.”
Nah… no thanks, and hell no.
Many businesses will take this route,
although those with creative AND DEFIANT leaders will not.
Look at Southwest.
Nearly every other airline is on Kayak.com or CheapoAir.com,
but not Southwest.
They may herd you like cattle onto the plane if you choose them, but AT LEAST they have the courage,
the gall,
the audacity to stand alone,
and to say NO to the price pageant all other airlines have entered.
I don’t give investment advice, but I will say this: Southwest is the only airline that has turned a profit for 46 Consecutive years.
The ONLY airline.
They gave the middle finger to the price and profit destroying group sites mentioned above (saving profit margins) while also cutting other extraneous in-flight costs (further protecting profit.)
This in and of itself is instructive.
But to FURTHER escape the prison of price comparison,
of constantly scanning the entrepreneurial landscape to see what you “CAN” (i.e. are allowed) to charge…
you
must
create
a
category
of
one.
To start, you’ve got to create, define and MAKE KNOWN something proprietary about your work. YOU MUST differentiate yourself so that you
- prevent apples to apples comparison;
- aren’t easily compared to others of your ilk;
and - can generate DEMAND for your own brand.
Differentiation is KEY to all of this.
It IS the key you need to get out of being handcuffed and ankle chained to your competitors, only DARING to raise your fees when the industry “allows.”
This is B.S, and it will keep you broke.
So, as a salute to my DEEP ROOTED appreciated for and daily celebration of capitalism, here are a couple of resources that can help you design — and then promote— your own category of one:
- an oldie but goodie from 2011 here.
- a Video on Why and HOW We Have To Fight Commoditization
P.S. Don’t keep going this alone. Women Who WOW is your tribe if you are determined, defiant and driven… If you want outrageous success ON YOUR OWN terms, if you’re done with “business as usual,” you’ll find a (REALLY PROFITABLE) home here. Coaching, mentoring, sisterhood. Message me for details.
