Like so many of us living in drought-ridden Southern California, my wife and I are looking to modify our home landscaping to soak up less water.  Some of my neighbors have simply ripped out their entire lawns and replaced them with gravel rock and cactus. That’s the cheap way out and it doesn’t beautify their homes one bit. Wanting to take a more aesthetic path, we called in two different landscape companies to quote on how they’d create a drought-resistant yard that still complements our house and neighborhood.

I had no idea what a good job might cost so we simply asked each company what they would do and what they’d charge for doing it.

The first quote came in from a company that did beautiful work and the owner really “got” what we wanted.  His quote was seventeen grand!  Eeyikes!  The second company came in at only eleven thousand, much more palatable, but I wasn’t as convinced about the artistry of their work.  I asked the first company how they could bring down their bid and the contractor said he could take this out and that out and it would reduce the bottom line some, but now I wasn’t getting what I wanted.

Given the initial six thousand dollar spread, my wife said it was a no-brainer: we should accept the lower bid…and I almost agreed.  Then it hit me.  I called up the first company again, the one I really wanted, and this time asked rather than bring down the initial bid, what could they do if I said create something wonderful for eleven thousand dollars?  This approach surprised the landscaper and he loved the challenge.  And needless to say, he came back with an entirely different design that was also wonderful while at the same time met our budget.

I realized that this is what happens to our agency all the time.  We get approached by a prospective client and are asked what it costs to work with us and develop a year’s marketing program.  If the prospective client hasn’t provided us a budget to start with, which is often the case, the moment we throw any number at them, they get sticker shock and that’s the end of the conversation.  What a shame. What usually happens after that is the company either takes some kind of budget approach and gets a poor outcome, or doesn’t make any change whatsoever and suffers all the more for it.

Why not do what I did with the landscapers?  Start by singling out the best talent possible and then, either on your own or together, arrive at a total budget that’s just below your pain threshold, one you can live with, and let the agency help you get the most bang for your buck.  Then you have the best of both worlds, the top talent and a budget to do the most effective job possible.

Taking the lowest bid or chiseling a good bid from the top only cuts down on possibilities.  Starting with a fixed amount and asking a supplier what’s the most you can get from it puts everybody in a creative mode, exactly where they all should be.

Whether you’re hiring a marketing agency, a freelance writer, a filmmaker or an engineering company, hiring based on talent, and budgeting based on your pain threshold (that only you alone can determine) will yield superior results.

In the meantime, I’m still praying for rain…

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Dan Katz is president, creative director of LA ads. To discuss your thoughts with Dan on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Dan on LinkedIn. See agency work via this link.

This past week I had a phone conversation with a new business prospect and during our talk he kept saying “we’re just better than our competition.” After saying this about the 3^rd or 4^th time, I asked him what he meant. He then rattled off these next 4 points like he was just waiting for me to ask: better service, better features, better product, and the infamous…better price. Then I asked him the question that took the wind out of our discussion: OK, but how is what your business offers meaningfully different from the competition? After stammering for a bit and then saying the same thing 2 or 3 times (but saying nothing in the process) he let me know that he forgot about a meeting he had in just a few minutes and with that we hung up.

So, while this business owner couldn’t answer the question, I’m guessing you could. So, how is your company meaningfully different from competitors? Are you sure? According to the Harvard Business School, 99% of executives think their business is different from its competitors. Unfortunately, most customers can’t tell the difference between your business’ offerings and those of similar businesses because they often won’t take the time to understand the subtle differences that make one company’s products or services better. In the process you’ve spent considerable money and resources on educating them on why your company is “better” when all they want to know is what you have to offer that the others don’t and how does it benefit the customer.

Instead of trying to be better, build a strategy around a simple way that your company is different, even distinctive, from the pack. Being different makes you irreplaceable to your customers, and being irreplaceable leads to greater loyalty. And yet, many businesses are afraid to be different because that means taking a risk and walking a different path. Making matters more difficult is the fact that when businesses ask for customer feedback, customers can tell you how they want you to improve, but they can’t tell you how to be different.

You see “Better is not better; Different is better” and here’s why. Aside from being difficult to prove, being the best is largely subjective. Would you say a pair of Nike shoes is better than Adidas? Perhaps to you but the other person may not think so. Second, being different gets you noticed, and in our ever-crowded marketplace, being noticed is the all-important first step for standing out from the competition. What’s more, being different creates marketing advantages that “being better” just cannot compete with.

With business ever-changing, it’s critical that growth-oriented companies think differently not only in terms of the products that are developed for the various customer segments but also how they go about marketing those in ways that captivate the attention of the customer.  People want interesting products and they want them marketed in interesting ways.  You see, it’s not about being better or the best.  It’s about finding a way to take who you are, what you make or what you offer and create a relationship with prospects and current customers that they find instantly fascinating.

Think of it like this. Imagine that on the other side of the door from where you are is where relationships happen, loyalty happens, sales happen, and profits happen.  That is the side of the door where your prospective customers are.  But get through the door, you have to knock.  And if you can knock in a compelling, persuasive and interesting way and introduce yourselves, and if you provide people with messaging and content that is instantly captivating, then they will open the door and you get to go through to the side where all the good stuff lives.  Ask yourself why it is that you remember certain brands or specific marketing messages from various companies …maybe even your competitors.  It’s not because they look or sound like every other company. Not a chance. You remember them because they had a strong brand and distinctive message. Captivating one’s attention is the shortcut to persuasion and selling more. And in a competitive environment, the most fascinating option ALWAYS wins. Always.

So here are three ways that your company can start setting themselves apart from competitors:

1. Adopt the idea of marching to your own drummer. Don’t be afraid to do something that people within your company, and even a few of your customers, may not initially like. Experience teaches that it’s OK to have some detractors. In fact, having a few critics is essential. The undeniable reality is that if you’re not eliciting a negative response from someone somewhere, then you’re probably not that fascinating to anyone. No one remembers lukewarm!
2. Have an idea for how you will be different. Any idea can be a good one, even the crazy-sounding ones. Unfortunately, most ideas that are deemed crazy are often dismissed. If you want to be different, you need to embrace a culture where any idea can be tried. More on this at https://laadsmarketingblog.com/2014/03/17/heres-to-the-crazy-ones/
3. Don’t over-listen to customers. I think we would all agree that asking customers for feedback is always valuable. But you can’t let your customers drive every aspect of what you do. Take your own lead.

I’ll leave you with two questions to ask yourself to help start the process of being seen as different: what can we offer that’s REALLY different from what our competitors are doing? What are we doing just like our competitors that we can change for our customer’s benefit. Then set up your product or service in a way that delivers on those needs in a way that your competitors don’t or won’t.

That can make all the difference.

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Rolf Gutknecht is vice president, director of account services for LA ads. To discuss your thoughts with Rolf on this blog or any marketing matters, email via this link, or visit www.LAadsMarketing.com.  You can also connect with Rolf on LinkedIn.