Location, location, location

Philip Morgan

Whole Foods has been in the news quite a bit lately because of Amazon's acquisition of their business.I'll be honest, I was relieved to read a Washington Post article that indicated prices on some Whole Foods items will be lowered immediately. I buy most of my groceries from Whole Foods, and will be happy to pay a bit less when I shop there.You will find the following interesting.There are two grocery stores in Sebastopol that have higher prices than Whole Foods!Did you even think such a thing was possible? :)One has higher prices for obvious reasons. It's called Community Market, and it's more swanky, more upscale, and more eco-vegan-organic-handpicked-wildcrafted-local-artisanal friendly than even Whole Foods is.The other market with higher-than-Whole-Foods prices is an absolute DUMP:ImageImageImageAnd I LOVE the dumpy-place. I think there's a lesson in there for service providers.The dumpy place is doing very well. I spoke to the owner recently during his shift on the register and asked about how his business is doing. He's 5 years ahead of schedule on paying back the loan he took to buy the place, and he's going to buying the neighboring coffee shop next.People, there are whole corners of this store that are covered in cobwebs. The stock room looks like some place the bad guys in a bad TV show would take their kidnapping victims. The building is literally a plywood shack.How the hell are they doing so well?Location, location, location.They are the closest grocery store to a critical mass of affluent people. In other words, they are a convenience store, and they can charge a premium for that 1 attribute.That 1 attribute of convenient location saves lots of people a 15-minute drive to the next most convenient grocer store (which happens to be Whole Foods), and that convenience is worth something extra to those people.What could you emphasize in your service offerings that would be worth something extra to your clients? Lower risk? Greater speed? Something else?There are 3 critical issues to consider before specializing. I've put together a free email course that covers these issues. Click here to sign up for that course.