Sorry…I’ve always wanted to say that.
At the airport my bride purchased a “substandard” bagel and “okay” coffee for $6.04. The same counter was selling breakfast sandwiches for $11.
Realizing I’m in the wrong business, I pondered how anyone has the nerve to charge such exorbitant prices.
First thought: Greed. Airport dining options are limited and most vacationers, feeling expansive, don’t bring their own food.
Plus with millions of guaranteed customers, a “Take it or leave it” attitude is almost understandable.
Especially since airport meals typically fade from memory before the next suitcase is packed.
Then I considered my neighborhood’s gas stations. One at the freeway entrance consistently charges 80 cents more per gallon than the place across the street lacking ramp access.
Given the minor differences from one brand of gasoline to another, the price differential must be caused by the convenience factor; the station’s location.
Economics 101 dictates something is worth only what customers believe its value to be.
A bottle of cold water selling for 25 cents at Costco is worth $3 when sold on a hot day inside a football stadium. Customers willingly throw money for the same item due to its increased perceived value.
Meaning we’re witnessing the law of supply and demand in action. The gas stations, airport restaurants, and water vendors are all charging as much as their particular customers are willing to pay.
You too should be looking to bestow some form of additional perceived value on your business. Like the airport, gas station, and football stadium, you may have location as an advantage.
Carrying hard-to-find products, providing amazing service, or making something of significantly higher quality than the competition also helps.
Or just making the experience more pleasant than the competition does might make the difference.
Greeting customers with a cheery “Hello friends!” and playing classical background music for those enjoying a morning cup of coffee, for example.
Of course, the answer to business success changes based on industry, geography, customer demographics, and your definition of success.
But if you can find that one thing that makes both you and your customers happy, you may suddenly find you’ve become quite popular.