Yesterday I went shopping for vitamins.
In one corner is a locally-owned one-off vitamin store. Immediately next door is a new-to-town "farmer's market"-style grocery chain.
I know for a fact the product I'm seeking is in the small vitamin store. I've bought it there before. The nice lady owner recognizes my face (but doesn't yet know my name).
I've heard from friends that the product I want to buy is also next door in the big chain store -- along with a selection of coffee, over-priced bananas, and impressive deli meats.
The point of purchase
I walk into the vitamin store, nod "hello" to the nice lady owner that (again) recognizes my face, head straight to the shelf where I know my product of choice to be, only to find it missing.
"Oh... yeah.. we're out of that today. I'm placing an order right now," she says, nodding to the phone in her hand. "We should have it tomorrow if the warehouse is stocked."
I thank her and tell her I'll give her a shout tomorrow before coming back, and walk out the door.
Commodity competition
As I walk out, I remember the place next door has been known to carry the same product.
I have some time, so I walk my thirty steps next door and quickly find the product, well in-stock, and 25% off to boot.
The decision is a simple one.
As I walk back to my car, I spot the nice lady owner staring out her shop window. She watches as I cross the parking lot, competitor's bag in tow. And immediately she sees she lost a $20 sale.
Differentiation helps, but it's not everything
This is the tale of two stores -- each carrying the same product within shouting distance from each other.
Differentiation is grand; I preach it often.
But sometimes, it's simply about maintaining inventory, removing obstacles, and being prepared when a prospect is ready to hand you money.
Because if you're not, they'll spend their money elsewhere.
I'll be back to see the nice lady owner in another few months; my loyalty and brand preference hasn't changed. But this time, I'm hoping she'll have a full stock.
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