One needs only to look at the ads in our industry trade ads and on our industry websites to clearly see that so much of our focus is on our “What”. We feature, exclamate, share and seek out the latest, newest, hottest “things” to “sell” to our customers.
Those who read my blogs and articles are aware of my strong evangelizing around knowing your “Why” and making your role in this industry to be about living out your purpose — to make life easier for
clients, to create beautiful branding experiences, to help others reach their goals and so on.
Today, I would like for you to consider your “HOW”. How are you presenting yourself and your value proposition? Why does it matter? What kind of difference can it make?
Last month, Payless ShoeSource, a company that one could truthfully say sells shoes as a commodity, conducted a research event that showed just how powerful changing one’s HOW can be. In an upscale mall in Santa Monica, CA, the retailer opened a boutique version of their store. They changed the name — Palessi— and gave it a high-end Italian-style branding and image. The store clerks donned all black fashionable apparel. Rather than racks and stacks of shoes, the shoes were merchandised in lighted boxes and with golden mannequins. They were presented with similarly merchandised with accessories.
Here’s how changing the HOW changed the profit. Palessi was able to sell shoes for $645.00. Some of these same shoes sold at Payless for $19.99! Assuming a keystone mark-up on the Payless shoes, the cost of goods may have been $10.00. That means Payless made a $10.00 profit on the sale of that shoe, while Palessi made a $635.00 gross profit. That means that Payless would need to sell more than sixty pairs of that shoe to make the same profit that Palessi makes on the sale of one pair.
Cute story, Paul. But how does that apply to me? What if you decided to merchandise yourself and how you go to market? What if you decided what your brand looks like and what it stands for and started a disciplined approach to presenting your brand in a way that commands more profitable relationships?
The Palessi story suggests that if you present yourself in a way that suggests you have more value, you can charge more and people will be happy to pay it. If you are careful about HOW you dress, you can create your own signature look. If you always submit your proposals in a clean, attractive presentation style, it will be noticed.
You create a presence that can command higher margins by consciously deciding to NOT play the commodity game. The two keys are to be more differentiated from your competition (actually more different than anything your clients have ever seen!), and be more relevant to the unique needs of your clients.
Your WHY is still most important, but your HOW is what can build your brand and your business.
Paul Kiewiet MAS+ is an industry speaker, writer, consultant and coach. He serves as the executive director of MiPPA. Kiewiet was inducted into the PPAI Hall of Fame and the MiPPA Hall of Fame. He served as Chairman of PPAI in 2007. A former distributor, he founded Promotion Concepts, Inc in 1982 and worked with some of America’s most valuable brands including Coca-Cola, Kelloggs, and Whirlpool.