Bev's Blog

Inspiration can come from many places and recently, I thought about traffic signs and how they relate to boutique businesses! In this blog, the traffic sign I want to discuss is STOP!

As owners of a high-end portrait studio for many years, we (my husband and I) have seen many trends come and go. Today, one of the trends we see that is destroying boutique businesses is discounting. It seems to be the “thing” these days!

STOP! Don’t even try to compete with the the big stores like Sears or Walmart. You are unique and offer something they cannot…customized products, over the top service, passion and your creativity. Your target client is not their target client anyway. They attract price-sensitive buyers who are looking for the lowest price which they can offer due to their negotiating power. You cannot compete in that game! You need to connect with the right client who loves what you do and is willing to pay what it takes to get it.

We often say, “Create a GAP!” This is where success lies for the boutique studio rather than discounting. It is a different mindset. A GAP is the distance you put between you and any others with whom you compete. What creates GAPS?  Uniqueness in your offerings, close relationships with your clients, a high level of skill, over the top customer experience and again, you! Think about ways to keep increasing the GAP. Get creative!

Whether the discount is a Groupon or a free portrait, I am proud to say that over the years, we have not used this technique. We believe our product is valuable and worth the price we charge. When you give photography away, it is immediately devalued and in the consumer’s mind, worth what they paid for it-nothing! Unfortunately, once a client receives a discount, they expect it every time! Think about Bed, Bath and Beyond-I don’t shop there unless I have a 20% off coupon. I am not loyal; I only want a discount and will wait until I get one before I give them my money. And think about those who choose you based on a discount-are they really the client you want in the future? Again, it comes down to finding and connecting with the right client!

Many ask us what we do with friends and family who want our product discounted or free! We came up with the perfect idea, at least for us, and I wanted to pass it along. We realized that if we simply took an amount (a percentage) off their bill, they were oblivious to how much they saved, (it wasn’t real to them) or they were mad that we didn’t give it to them free! What we decided years ago (and it works like a charm) is to give a Gift Certificate with an amount on it that is pre-determined and depends on whether they are friends or family (in case they compare, we use the same amount each time). With this approach, they feel like we are actually handing them cash and the response is completely different-they are grateful! It is amazing that this small change creates such a positive outcome.

In this blog, it is my goal to make you STOP and think about your business and how you can create GAPS for a prosperous, long-term outcome. Don’t panic and make the mistake of thinking a discount will make everything ok! It will short circuit your long term prosperity, de-value your brand and bring you exactly the wrong client!

Have a great week, everyone! Bev

www.timandbevwalden.com