Get Out of the Commodity Business

I've never liked being in the commodity business, because someone can always come along and unseat you on best price. The places I love to play are in differentiating from others by defining a new category.

E.g., when in the late 90's I was heading up product management for a product competing in the "log file analysis" business (to understand where visitors were going within a web site) we repositioned ourselves as providers in the "e-business intelligence" category.

What about when you cannot define a new category, such as wine in a bottle? How do you get your product to stand out from the crowd?

You cultivate an appreciative customer by engaging them in a compelling story of the background of the land the grapes are grown on, the quality control processes, the craftsmanship, the physical path it takes to market, the farmers themselves, awards that have been won, and anything else that creates appreciation (and therefore willingness to pay more than "Two Buck Chuck" -- a fascinating example in itself of urban legend story that swirled success for Trader Joe's!).

What if the bottle of wine came with its own sommelier? That is the idea behind a print technology that Italian company, Modulgraf, is set to roll out next month at Milan’s wine fair. The innovation is a system for embedding micro-chips into paper labels that transmit information via RFID (radio frequency identification) to handheld devices. Through your PalmPilot or perhaps a grocery store's loaner Walkman ("Wineman"? :) buyers will be able to listen to information about the vino and perhaps even some Italian mood-setting music.

Can you differentiate your products or services by defining a new category? If not, how can you differentiate within your category? "Facts tell and stories sell".

Typo Awards

Thanks to all who participated (everyone won something!) Certificates and packages will be mailed out shortly.

• John Castle: "Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)
• Kathy Cocus: 1 Pair Sterling Silver Earrings (choice of colors) from Thimbleberry Design ($14.00 value)
• Larry Fiber: 1 Bottle of XanGo - natural anti-inflammatory and antioxidant beverage ($39.95 value)
• Avijeet Ghose: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)
• Andy Held: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)
• Phil Herres: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)
• Cynthia Herrick: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)
• Roger Larsen: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)
• George Lightbody: Free one-year subscription to KidMail.net ($29.95 value)
• Doug Nathan: Gift certificate for Shima Sushi on Bainbridge Island, WA ($50.00 value)
  Dennis Noland: “Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)
• Rick Van Ness: “Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)

Next time back to our normal content!

-- Paul

PS. Though I'm a grammar and spelling nut, I am leaving the typos in for future readers to get a taste of how subtle they can be.

Differentiate or (Dwindle/Decay/Die)

Whether you are a business executive, a career coach, a parent, or a marketing consultant like myself, there are people around you that you'd like to lead down your path, right?

With the personal information overload that our society faces today, you must either differentiate your message or face blending into the "noise stream" that surrounds us every day.

A brilliant product that plays on this dynamic is "Babble" from Herman Miller, the office furniture people. This patented desktop digital device provides simultaneous playback of different recordings of your voice, effectively rendering your phone call "confusingly confidential" to people sitting as close as the next cubicle!

Your mission, should you choose to accept it, is to create a different conversation than people are hearing elsewhere. I learned this in the 90's by doing restaurant coupons which doubled in value if the person identified the typographical error somewhere in the fine print. Customers had fun and the campaign was extremely effective at bringing in non-coupon customers based on positive word-of-mouth.

Have a taste of this kind of incentive, right now! I've lined up some wonderful gifts (each worth between $14.00 and $69.00) as incentives for you to simply read through my initial cache of writings. If/when you catch a typo, report it using the email link in the right column and qualify for a drawing of the items below:

• 1 Pair Sterling Silver Earrings (choice of colors) from Thimbleberry Design


• Bronze Pass to the Seattle Real Estate Investor's Super Conference (Oct. 20-23)


• Free one-year subscription to KidMail.net
• 1 Bottle of XanGo - natural anti-inflammatory and antioxidant beverage
• Gift certificate for Shima Sushi on Bainbridge Island, WA


• “Creating Your Own Destiny” (softback) by Patrick Snow

The Fine Print: (1) One typo per person. (2) Don't worry, I won't award a Seattle-area restaurant gift certificate to a New Yorker. (3) Oh, and of course, "supplies are limited".