Value and service will win

At breakfast this morning, the owner of the restaurant explained to me how much her food costs have increased in the last few years - her cost of eggs has more than quadrupled, her bread is going to $4.00/loaf, etc. Unfortunately, this is the way things are right now and how we as businesses deal with it will make the difference in our success.

The key to brands surviving these times will be differentiation through value and service. Genuine differentiation, not the "steepest, widest, longest" differentiation (pardon my reference to the heydays of Sunday River marketing - however, it was brilliant then - one of the best marketing campaigns of the time.)

Despite the rising costs of everything, your customers will still buy - they still need to eat, they will still want to work out (they need to buy gear for that), and they still need their "Americano" coffee to start their day. But they will make you work harder for their business. They will look for value - not discounts, but value. They will spend their very hard earned money on those brands and with those business who demonstrate value - and, most importantly - here is the real secret to success right now: consumers will spend money with you if you show them that you care. Not candy and flowers type of love (although that could never hurt). You need to show them that you care that they've chosen your business or brand over the many others. Show them - tell them - that you appreciate that they've chosen your business. The businesses that figure this out - and quickly - are the ones who will win in these times.