Just a note before I start this week: I’ve written more than 300 posts on this blog, but last week’s was much the most personal. I’d like to say thank you for all the comments and replies: some of them were touching, some heartfelt and some even more personal than the original post. One in particular buoyed me for the whole weekend: so thank you again.
Anyway – on to business. And a simple question: how much did you pay for your last latte? I’d guess anywhere from £2.40 to £2.90: that’s the going rate and it is, of course, completely ridiculous. Invest not-all-that-much in the right equipment and you can stay in your kitchen and make a coffee that’s equally good for a fraction of the price.
But that’s not the point is it? Because as we all know, Nero, Starbucks and your local coffee n’ cake shop don’t sell coffee. They sell something else entirely.
…And now a café has started charging for it.
Let me introduce you to Ziferblat, a café in Manchester that charges 6p a minute. That’s right, 6p a minute. Stay as long as you want; eat and drink as much as you want and use the Wi-Fi. 30 minutes costs £1.80 and an hour is £3.60.
At first glance that seems remarkably cheap: why do you need to pay rent on an office? An eight hour day at Ziferblat costs £28.80 with no need to go out for a sandwich at lunchtime. Well, they make a profit and the chain is expanding. But it’s not their balance sheet I want to discuss; it’s their willingness to look at an established concept in a wholly new way.
I have plenty of my meetings in various Costas, Starbucks and Neros around North Yorkshire. Am I paying for the coffee? No. That’s the last thing on my mind. I’m paying for convenience, for somewhere to meet, for thirty minutes with a friend, Board member or potential client.
I’m buying the coffee in order to rent a convenient meeting space for thirty minutes. The owners of Ziferblat have recognised this: as one of them says in the video, “Everything is free, except the time that you spend.”
Some of you may remember a post I wrote early in 2014: it was about American restaurants charging different prices for their food depending on when you ate. Re-reading the original piece – and thinking about ‘the 6p café’ – that still seems entirely logical to me.
The reason I make these points is simple. We’re now well into ‘making plans for next year’ season and there’s a fundamental question to ask yourself: what do I really sell?
Do you sell coffee? Or do you sell the convenience, the surroundings and the meeting place?
Quite rightly, you’re now turning the question round and asking, ‘Fair enough, Ed. What do you really sell?’
Let me answer that, because it illustrates the point exactly.
Do I really sell 1 to 1 meetings and peer-to-peer coaching? No, of course I don’t. So let’s look at the reasons entrepreneurs ‘buy’ TAB York:
- They want to solve a problem and/or address some pain
- They don’t want to feel isolated/lonely any more
- They want a fresh perspective on their business
- They’re stuck in a rut
- They know they’re ready to ‘take the next steps.’ But they don’t know how to do it, and may not even know what the next steps are
So TAB York sells solutions to specific problems, an end to loneliness, a new way of looking at problems and opportunities, motivation and – as I wrote two weeks – a glimpse of what life and business could be like: ‘permission to dream’ as I termed it.
Clearly, TAB York sells different things to different people – and that doesn’t change even after someone becomes a member. The reasons why entrepreneurs continue as Board members can be very different to the reasons why they joined:
- The Board meetings are an insurance policy against things going wrong
- The routine of the monthly meetings forces members to work ‘on the business’ not ‘in the business’
- It’s the only place they can really talk about their business with people who absolutely understand…
- Who’ll give absolutely impartial advice…
- And who care about your success and the success of your business
So in no way am I selling the monthly meetings: I’m selling reassurance, a framework, and the experience, objectivity and commitment of the other Board members. And ‘commitment’ is the right word: members of TAB York have an emotional investment in each other’s businesses.
All the above points have come from Board members over the years – and yes, when entrepreneurs ‘buy’ for so many reasons it makes it difficult to define what my colleagues and I ‘sell.’
The same may very well be true for you and your business. But take your time to define exactly what you do sell – and don’t be afraid to emulate ‘The 6p Café’ and think a long way outside the box. It’s a really worthwhile exercise and the answer may well surprise you – and have a significant impact on next year.
In fact it’s something we could cover at a 1 to 1: maybe over a meal. I’ll drop an e-mail to the Star Inn the City and offer them 6p a minute…