Why would customers buy a product from you?

Have you ever ask yourself this very question? Why would people buy from you, not from your competitors, or from the shops next door? I find this question very useful. This is because it’s sometimes difficult to find a good answer.

In my industry, the question I often ask is ‘why would guests choose to stay at our hotel, not the hotel next door?’. We have a hotel in a place called “Gold Coast” in Australia. There are more than 1,000 hotels in this tourist city. In the city’s tourist spot, there are more than 100 similar hotels to ours. Hence, the question I ask – why?

The response I got is frustrating. We don’t have a good answer. Could it be our service? Or, could it be our room standard quality? Our beds? Kitchen? All of the above, or none of the above? As far as I can see, the hotels next door offer the exact same things that we do. That’s why all of us go to the price war. We offer discounts. We focus more on the revenue management function.

Some changes in the way we think need to happen. We have to find the right answer. Some woks are in progress. We started by giving a unique positioning to each hotel. We will separate them all with different positioning.

Wish me luck.

Apivut

Start with the product

It’s getting harder and harder to have a product that stands out of the crowd. Some companies like mine have a product that lasts for a long time and it’s not easy to come up with a new product. What are we going to do if we have to stick with our existing, non-attractive product?

In my opinion, there are 2 options to deal with this situation:

1. Repositioning the product: it means looking for the minimal viable audience and reposition your product to suit them. It is the same product but you create reasons for this group of people to buy your product.

2. Partner with other products: for example, if you are selling hotel rooms and your hotel doesn’t have a unique proposition, you may partner with a cooking company and offer a cooking package while staying at your hotel.

Remember this – there is always a solution to every business problem.

Apivut