Many things can affect the performance of a business, such as: the quality of its products or services, the abilities of its employees, its marketing, its public and media relations, how it reacts to change and, sure, a bit of luck doesn’t hurt either.
The late Peter Drucker, author, political economist and management consultant, is credited with pioneering the most important social and management theories of the 20th century. A quick web search will turn up many of his famous quotes, including:
There are only two things in a business that make money: innovation and marketing. Everything else is cost.
The purpose of a business is to create a customer.
The aim of marketing is to know and understand the customer so well, the product or service fits him and sells itself.
Suppliers and especially manufacturers have market power because they have information about a product or a service that the customer does not and cannot have, and does not need if he can trust the brand. This explains the profitability of brands.
In most types of business, there are dozens, maybe even hundreds, of brand choices for the consumer. Why would, or should, a customer choose your business? (For extra credit: does a customer choose a business or does a business choose its customers?)
Generally speaking, all professional photographers use the same cameras, same lenses, same computers and same software. Since a photography business can’t depend on luck, how does a photographer increase the performance of their business?
All roads point to marketing
The secret is to somehow make your business more than just a supplier of photography services. This is not easy. But a successful business is one which is somehow different and more meaningful to its customers.
A pyramid is wide at the bottom and narrows toward its pinnacle. Where would you like your business to be on the pyramid of success? Of course, you’ll say, “at the top.”
Let’s look more closely at that pyramid:
• The wide pyramid base: the bottom is occupied by any and all businesses that sell commodities.
• The middle: This is for suppliers and vendors that just sell products or services which may have some features and benefits.
• Higher up: This area is for experts who provide solutions to problems.
• Top of the pyramid: Reserved for premier brands that give their customers an exceptional experience.
Customers will pay more to do business with those companies higher up the pyramid. We see this everyday when people buy a Mercedes, an Apple computer, Godiva chocolates, or any other product from a premium brand.
Say this five times quickly: Pyramid power produces premium profits.
