What business do you think you’re in?

Do you think Lexus and Hyundai are in the same business?

How about Starbucks and Dunkin Donuts?

What about Rolex and Timex, are they in the same business?

Let’s review, Lexus & Hyundai – they both build cars so they are in the same business, however they sell to a totally different client! Lexus sell status, luxury and performance. Hyundai sells price point, value, and assurance. They both know their client base, and do a great job of marketing to that base.

Starbucks & Dunkin Donuts, they both make coffee with some differences. Some might call Starbucks, “Fivebucks” because of the cost of their coffee. Dunkin Donuts sells very little in the way of frills but they still make a great cup of coffee. Starbucks sell atmosphere and “the experience.” Dunkin Donuts sells value & doughnuts. Most people who frequent Starbucks would not be caught dead in Dunkin Donuts, and if you are loyal to Dunkin Donuts, you would not want fu-fu coffee in a “venti” cup! Why can’t they just say large?

Rolex & Timex both make a watch that tells the exact same time, same number of hands, with 12 numbers. Timex sells reliability, and a price point. Bottom line, Rolex sells Jewelry. Make no mistake about it, Rolex knows you can buy a more reliable time piece, but it’s hard to make a fashion statement with a Timex.

Knowing what business you are in is paramount to the success of your company!

Remember…

“You manage what you do, you sell what you provide your customer.”

Lexus markets and sells Luxury,

Starbucks markets and sells the experience,

Rolex markets and sells Jewelry!

They manage what they do – they sell what they provide their client!

If you are in the business of making, fabricating or installing glass, what business are you in? You know what you DO, so what do you PROVIDE your client?

Let’s review next time to help define what you sell/provide your client.

Are you in the business of providing a specific good or service?

Are you in the business of only making a profit?

Are you in the business of helping people earn a living, provide for their family and help champion their efforts?

For you, depending on which side of the fence as to why you’re in business, will define you as a person. Of course the answer is the same to all the above questions.