When you hear the name Joseph A. Bank, what comes to mind?
I asked this to a group last month and someone shouted, “Three suits for the price of one!” In my younger days I wanted to own a suit from Jos A. Bank. They were one of the most expensive quality suits a man could purchase. Then they purchased Men’s Warehouse and began running sales several times a month. They cheapened their image thinking they would be successful. Their strategy hasn’t worked out very well so far.
When you hear the name Ruth’s Chis Steakhouse, what comes to mind? Yes, expensive, but you don’t find many coupons in the paper for Ruth’s Chris Steakhouse. Why? They don’t rely on false information about discounting to bring in more money. Neither does Porsche, Emirates Airlines, Louis Vuitton, Wynn Casinos or American Express. They assume a segment of the population will pay more to do business with them. And they are right with their target customers.
Their select customers will always want the added value and quality to keep them strong in their market. If you don’t rely on customer feedback and information to deliver the value they want, your crowd will go some other place. Consider Compaq computers, Mercury, Pan Am Airlines, Members Only and many casinos in Atlantic City. They relied on an unchanging economy and paid a steep price for listening to false information. They chose not to be different as the economy changed… and they lost.