The family and I are on holiday at the moment.
We’ve actually just bought close to an acre of land where we’re staying… so we’re scouting out the town and getting a feel for the vibes since we’ll be moving up here in a few years.
It’s not terrible where we are. I’m looking out over the Pacific Ocean to one side, vast bushland to the other, and a championship golf course in front of me.
Nicky and I, as part of our scouting mission, went into the town centre.
It’s not big, but it’s big enough that it has a shopping centre with about 180 speciality stores.
One of those stores is Athlete’s Foot.
For those that aren’t in Australia, Athlete’s Foot is the go-to store for buying shoes for sports and recreation.
It’s been that way for years.
At this particular shopping centre, Athlete’s Foot was next to another shoe store.
The other store (I can’t remember the name but it was an independent sports store), also sold sports shoes.
But Athlete’s Foot is way more expensive — the average customer spends about $250-$300 (once you include an insole).
Have a guess which one was full?
So the question is, why?
Why are people not making a decision based on price?
The answer comes down to positioning.
Athlete’s Foot has transcended price. When people buy shoes at Athlete’s Foot they are making a value decision, not a price decision.
One of the ways they do this is through specialisation.
That’s in the name… ‘Athlete’s Foot.’
But it doesn’t end there.
They also have a unique mechanism — a system for determining the perfect fit.
They call it the MyFit3D System.
It’s a basic 4-step process that takes a foot imprint both statically and dynamically.
It then makes a decision and gives recommendations on the right shoe for the customer.
It’s not rocket science, but it does on average, double to triple the average order value.
That’s because customers perceive a massive increase in value. The unique mechanism makes them feel like they are getting a unique experience and a quality product at the end of it.
This is a simple, but wildly effective strategy we can all learn from.
It’s been working for Athlete’s Foot and it can work for you too.
All you need to do is systemise what you do, and then package it in a proprietary way.
We utilise the same strategy to great effect.
Instead of ‘Performance Testing’, we call ours the Elite Athlete GamePlan. It serves the same purpose as the MyFit3D system. It positions us away from all the other performance testing offers in the marketplace and allows us to charge $497 when the average is $97.
And guess what… our athletes pay it without blinking an eye-lid.
If you can transcend price and help your target market make a value decision, then you can (within reason), charge way above the industry average… AND, attract more customers at the same time.
Something to think about.
– Karl Goodman