Competitive Advantage: Are You Competing With Starbucks?
in the coffee business serving people.
--John Moore
==============
Cathy is the owner of Norma Jean's Coffee in my town of
Aptos, California.
We met about two weeks ago when Justin and I ducked inside
for an afternoon pick-me-up. Joe for me, Jones Root Beer for
him.
The quaint little shop, located in the Trout Gulch area of
town, it used to be known as Trout Gulch Coffee.
The new name comes from a renovation that is underway
transforming TGC into a James Dean - Marilyn Monroe-esque
coffeehouse / cafe.
Cathy told me it was "Double-or-Nothin' Monday," pointing
to the dice cup on the counter. If I rolled a double, I'd
receive a free coffee drink on my next visit. Sounded
good.
I asked Justin to roll for me as his hands were hot from
rolling successive doubles during a rather spirited
Monopoly game the previous evening.
He shook the black leather and red felt-lined cup back and
forth. He whispered something into the cup and them shook
out the little black-spotted white cubes.
They clickety-clacked across the counter.
Double threes!
Yeah, baby...free coffee next time (and a Root Beer for
Justin)!
====================
The Dreaded "S" Word
====================
While my individually brewed cup of Italian Roast was
filtering at the coffee bar, Cathy and I chatted
about business.
It seems Starbucks is on its way to town in just a few
months. Just across the street from Norma Jean's in fact.
Coincidence? I think not.
Cathy was a bit jittery about it.
I couldn't blame her really.
We talked for about thirty minutes about the issues that
loom to the forefront when a heavy-hitter like Starbucks
or Wal-Mart comes to town.
=========================
Are You Competing With Starbucks?
==========================
This encounter with Cathy got me thinking.
Aren't we all competing with Starbucks?
Each of you reading this ezine has a "Starbucks-like"
competitor. It's the business that, you one day fear,
may put you out ...of business.
How do you compete with a company like that?
I had a lesson about this...
==============
Just Last Week
==============
A good friend emailed me the other day after he
read a post of mine of a forum. My post was about
an upcoming product for BarryMorris.com.
A word about my friend. His name is Mark.
And he's my competition...in a way.
While his target market isn't primarily composed
of freelance commercial writers, he does have
a few of them in his stable of clients. (Including me!)
Back to the email (paraphrased)
"Hi Barry...Just to let you know that I'm coming
out with a similar product in a few weeks and ..."
Now, the old Barry, pre-enlightenment Barry, would
have shaken in his boots right then and there.
He also would have also probably have pulled the plug
on his plans for a new product. Nothing like a little
competition to make me really nervous and full of doubt.
The new Barry, post-being-Mark's-client Barry, was
encouraged by the news. Why the dramatic turnaround?
Because Mark taught me something that I'll never
forget. He taught me how to discover the true
essence of what I provide my own target market.
Deeper than that, it's what makes me truly unique
as a person, as a spiritual being. He calls this
process 'Unveiling your Jewel.'
(Who knew that under this rough exterior, there was
a gem waiting to be unearthed!)
OK, Back to my reaction to Mark's hostile takeover.
;-)
Because I know who I serve and how I serve them,
Mark's news didn't have the impact that it might
have a few months ago.
Mark, being the gentle soul that he is, probably
felt a little unconfortable telling me this news.
But it was because I am a client, that he felt a need
to care for, guide, and protect me. That's how Mark
thinks about his clients.
(I'll share with you Mark's site in a moment.)
But first, how do we react to our own Starbucksian
behemoth moving toward our market share?
===================
Taking on Starbucks
===================
Here's my take on what we all need to do
when faced with the apparent threat of competition.
First of all, realize there is no competition.
Because of my security in knowing who I serve and
that I desire to serve my target market with value
and sincerity, I know there is room for me in this market.
But on a more practical level, in order to coexist
successfully with a major competitor, we need to
know a few things about them:
*Why are they so successful in the first place?
*What business are they really in?
*How can I differentiate myself to serve the same
population?
Let's look at each of these questions.
------------------------------
Why are they so successful in the first place?
------------------------------
In the case of Starbucks, two factors are important:
consistency and uncommon-ality. (Not really a word, but
you get the idea.)
*Consistency*
Everything about your experience inside a Starbucks is
consistent. No matter if your in their Capitola Mall
store in my neck of the woods or one of their 4 stores
in Abu Dabi in The United Arab Emirates, your
experience will likely be the same.
Starbucks Coffee tastes the same the world over.
Do your clients find a consistency that they can count on
each time the buy from you?
*Uncommon-ality*
Truly successful businesses make the common uncommon.
Starbucks made the experience of enjoying a common cup of
coffee uncommon. In-N-Out Burger made the experience of
getting a common hamburger uncommon.
Apple Computer made the common computer uncommon.
The Toyota Prius made the common car uncommon.
Have you articulated what makes your business an uncommon
find amidst a sea of common competitors?
------------------------------
What business are they really in?
------------------------------
As noted by John Moore above (I recommend his Blog:
http://brandautopsy.typepad
Starbucks isn't in the coffee business.
"Starbucks is in the people business serving coffee and not
in the coffee business serving people."
So what business are you really in?
Are you in the copywriting business or are you in the
people business serving word-pictures?
Are you in web design business or are in
people business serving web design?
------------------------------
How can I differentiate myself to serve the same
population?
------------------------------
I have an appreciation for fine antiques.
I used to own a typewriter made in 1902.
I refurbished it and even wrote a few college papers on it
in the days before PCs and Macs. I guess I love antiques
because they're unique. Most scream one-of-a-kind.
What we're talking about in this article is really our
Unique Competitive Advantage (UCA).
It's one the reasons that clients seek us. It's what makes
us unique, a one-of-a-kind vendor for our clients.
What makes your business unique? Here's a hint.
It's what's on the inside that makes the difference
on the outside.
What's your unique set of qualties?
What one trait always rise to the top when you
practice your business crafts?
Do you like helping others? Are you a teacher
at heart? Perhaps the pillar of strength?
We all bring our own unique ingredients
to the business banquet.
=================
And It's All Good
=================
Competition is good. It's good for business.
It's good for us as business owners.
"If it wasn't for Starbucks, we wouldn't be able to sell $3
or $4 cups of coffee. They pretty much train the customers.
Then, once they like coffee, they come to other people's
cafes. You can ride that wave."
---- Steve Ranjbin, owner of Rooz Cafe, which is about two
blocks from a Starbucks in Oakland, CA.
What can you do when faced with a big competitor?
Here are my suggestions:
*Constantly watch the competition.*
Find out everything you can about them and use it to
differentiate yourself from them.
*Control your expenses.*
You've got to be lean. Become quicker than your
bulky competitor.
*Offer something unique.*
Get that UCA established and out there. Make sure your
market knows why you're the best choice.
*Capitalize on your strengths.*
Are you faster, more accurate than your larger competitor?
Do you offer more personal service?
Nail down these differences, act upon them, and you, too,
can compete with Starbucks.
-----
I promised you Mark's info.
I recommend Mark's site all the time..even if he's
my own personal "Starbucks!" (Kidding, Mark!)
He's taught me a great deal and continues to do so.
Visit Mark's site here: http://www.HeartofBusiness.com
Subscribe to his free ezine and he'll send you three
chapters from his excellent book, Unveiling the Heart
of Your Business, for F*ree! Such a deal!
http://www.HeartofBusiness.com
Thanks for Reading,
Barry