Most businesses these days are confused about what they’re selling. Bankers think they sell loans, and grocery stores think they sell groceries, and I’ve no idea what you think you sell, but like the bankers and the grocers, I’ll bet you aren’t selling what you think you are.

If I can get a loan from any bank, and a head of broccoli from any grocer, then what makes us choose this one over that one? If all the loans are Prime +2, and all the milk is 2% low fat, then what’s the difference and what makes a customer go to that place specifically?

Either you’re the cheapest, or the closest, or people are actually buying something else.

Sure, you can try and play the cheaper-closer game, but you’ll probably lose. Because sooner or later there will be another car dealer, or plumber, or internet marketer, or barbershop or daycare who is either closer than you, or who’s prepared to do it just a bit cheaper, or both.

And yet there’s a whole bunch of customers who will drive across town to get their hair cut at that hairdresser, who will only get their bike serviced at that dealer, who will only work with that agency.

And as a result that agency, dealer, service provider get’s to charge just a little bit more instead of just a little bit less. And the one down the road scratches his head and runs a special because he’s still playing the closer-cheaper game and he hasn’t figured out that the winners are simply playing a different game.

So why do those people drive across town when they could just get the widget over here? Because they aren’t buying the widget.

It’s like when you say you want some toast.
But actually you don’t want some toast; what you really want is some peanut butter, and the toast is just a peanut butter delivery mechanism.

The thing you sell has become a delivery mechanism for an experience. And in a world where all the ‘stuff’ is the same, people will drive a little bit further, and spend a little bit more to have a good experience.