What’s your channel?

Understand that the price of your service or product doesn’t have anything to do with how much it cost to make.

So Starbucks Costa Rica Finca Palmilera coffee cost around $73.oo a gallon to buy or $40 for a half- pound bag to buy , but to make it cost $2. There is this huge disconnect because the value you get from buying Starbucks coffee (if you’re someone who likes to buy it) is extremely high, they have a monopoly on Starbucks coffee, so if you want to buy it, that’s what it cost and the price is OK because it tells you how much their worth.

So, it may be that your boat tour service cost the same amount as a bus tour to deliver, but that doesn’t mean that it delivers the same value and it also doesn’t mean that the same person who’s getting it feels like it ought to be price the same.

It maybe  that the bus tour cost $25 per person for three hours and your boat service cost $250  per person for three hours and a lot of people are going to say, “that is ridiculous!” Which is great! You don’t want them anyway, so then the question comes int o play, “How do you make it so that you can have enough customers paying the price that would identify them properly?”

Well, the answer is: “What’s your channel?” Clearly “The Washington Post” is not your channel. Someone reading the “The Washington Post” doesn’t go from there to booking a reservation, flying into your city and hiring your boat tour. It’s good for building a brand in the long run, but it’s not your customer acquisition tool.

Question: What is your customer acquisition tool?

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2 thoughts on “What’s your channel?

  1. Excellent point you make here. Many people who are just starting out with launching a small business ask the same question, “where do I start with advertising?” as if there is only one answer. The whole reason there are many ways to advertise is because each channel reaches different people in different ways. For example, online ads could be either text ads that show up on search engines (think Google Adwords), or display ads that show up as animated graphics on content websites (disclaimer – I work for Vantage Local, a digital agency that specializes in local display advertising). Each may reach the same viewers, but they are at different stages of purchase process.

  2. Pingback: The best way to predict your future is to create it « Indispensable Marketing

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