The line ends here for overpriced coffee, but is price really the issue? Seems to me, that anyone who is willing to wait in line on a 35 degree day would opt for a less expensive option, yet they wait patiently for their chance at $5.00 coffee with a sprinkle and whipped topping. May I postulate that most transactions are seldom solely about price?
A few caffeinated thoughts on why people wait out in the cold and place value on an overpriced coffee (me included):
- Good product: Try duplicating a Mocha-Caramel-caffeination at home…sadly it just isn’t the same, even though we buy the beans. Everything sold is above average. Value.
- Good location: It doesn’t take long to stumble upon a Caffeination-Location. Just look for the lines. Value.
- Clean business image: The logo, cased goods and the operation behind the counter all function as a team. Each product lives up to expectations while each is performing the the assigned duties with relative unity and face time. No hidden processes here. Value.
- Clean marketing message: Word of mouth builds when a good value is transfered in each transaction, value beyond “give me the order.”
- Personal image: No question there is a coolness factor associate with walking around with a red, green or khaki cup of java from this location.
- Recruiting message: The goods and paraphernalia are all over my home like a caffeinated purists shrine to the coffee gods. I worship the living God who made heaven and earth, so how did the heretical altar to the coffee gods get there? I was lured by a good experience of an above average treat.
Do you know how many customers have to buy coffee to cover the overhead for the store, salaries, utilities and ambiance? Quite a few, but less if you create addicts who are willing to buy and repeat.
So how do we apply this to the our sales addiction?
Application: If perception is reality, Negotiate value in every activity, process, presentation and delivery. The sum of all the little values equal the repeat customer standing in line in the cold.
Starbucks found a way to make each person feel smart, unique and motivated to purchase their overpriced coffee services….even if their “unique” clients all wear similar boots, dress similarly and are enamored with appearances.