In a little town near me, there is a road course that is the longest in the US. It’s not well known to most, but it’s very well known to those that care about recreational racing. The other thing is that it’s exclusive to members. (Except you can tour it if you want). Those members pay a crazy amount of money in my opinion to be part of this club. And they’re happy to do it because it provides them with something they value more than dollar amount.
From this, we learn 3 very important things about what every brand should be.
- Not for everyone
It’s not for everyone because it doesn’t need to be. Being an exclusive member makes it all the more valuable to the members and all the less interesting to those that don’t care enough to be “in.” Not everyone wants to race for fun.
The amount of money exchanged to be a member doesn’t matter. The people that want to be members there are happy to pay the rate because, in their minds, the value they get from being a member is worth far more. (Notice the differentiation between rate and value.)
- Steal a model that works
They stole the model of a golf country club. It’s the exact same model from a membership perspective except instead of caddy’s, you have a pit crew and instead of golf carts, you have 700 horse power. Same model, different industry.
Take and apply those 3 things to your business and it will help. Make something that isn’t for everyone, provide more value than the rate you charge and steal a business model that is already working. Do that and you’re on a good path.