Imagine a small, independent Los Angeles-based grocery store trying to compete with the big supermarkets. The chains buy products cheaper than a single store can sell them to customers. You know how this story will end.
After his elderly parents couldn’t run the grocery store, John Nese’s folks gave him the keys. John quickly realized that he wasn’t going to be able to compete with Ralph’s and other big supermarkets, so he knew he had to do something radical.
He wondered, what could he do that the chains would never try?
So he decided to become the #1 store selling every variety of hard to find soft drinks. Why sell Pepsi and Coca-Cola like everyone else? His mission was to specialize in a niche and to give his customers a reason to shop. Ever taste Mr. Q Cucumber?
Today Galco’s sells 750 varieties of soft drinks. What John discovered was that there were riches in niches. By going deep into one category, he could be an expert in something and a #1 in some segment.
Think of him like a wine shop specializing in only selling wine. Soda, although declining significantly is still consumed by U.S. consumers in significantly higher quantities than wine.
Riches in Niches
The marketing lesson in what John has done is that he focused on doing something his big competitors couldn’t do. Kroger or Safeway would never stock 750 types of sodas. It wouldn’t make sense for their business model. But a small independent store can do whatever they want and redefine who they are to their customers.
- Could you hyper focus on doing just one thing? (My wife and I made a living for 14 years just selling one SKU – an amazing double chocolate brownie.)
- Is it possible that instead of selling a range of goods, you became the expert and known for just one thing? A winery that only makes Chardonnay? A pet store that only sells cats? A mail order/online business that exclusively sells gardening and kitchen tool for people who are left-handed?
- What happens when you focus and no longer run your business as a generalist? Is it possible that that expertise becomes even more in demand? A marketing agency that only focuses on helping customers create Kickstarter campaigns? A law firm that exclusively provides counsel to the woman getting a divorce?
I’m convinced that focus is vital for success. Become an expert in one thing. You will be THE REAL THING.
Searching for your riches? I can help uncover the niches. Text me at 919 720 0995 or set up time to talk via Clarity.fm
Photo Credit: Courtesy of Mr. Q Cumber (I wonder if there is a Mrs. Q Cumber)
