Commodity or Experience? What Are You Selling?
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Commodity or Experience? What Are You Selling?


Why Dave Chose to Talk about What We Sell:

Dave Woodward wants to lay out the details for the pros and cons to the types of products that sell best. He reveals secrets successful marketers use to sell products as experiences and what you can do to have similar success.

Tips and Tricks for Your Business:

  • Selling a product that is purely commodity vs. an experience. (2:08)
  • Changing your marketing standpoint from commodity to experience. (4:42)
  • When you look at successful people, they sell experiences (8:00)

Quotable Moments:

“Unfortunately for most of us that are in marketing we end up going the exact opposite direction. Our product becomes very price-sensitive, very commoditized.”

“But once you start bundling it with different products and services where someone no longer compare it to other water bottles. It now becomes an experience that the person is going to get along with that.”

“Even though you’re selling a product or a commodity you can still have an experience. Try to find different ways of creating it, most of it is through your marketing.”

Other Tidbits:

Dave loves ice cream, his wife loves Lu Lu Lemon.

Links Mentioned by Dave:
FunnelHackingLive.com/get-your-ticket-now
FunnelHackerRadio.com
FunnelHackerRadio.com/freetrial
FunnelHackerRadio.com/dreamcar

Episode Transcript

Automated:                       Welcome to Funnel Hacker Radio Podcast, where we go behind the scenes and uncover the tactics and strategies top entrepreneurs are using to make more sales, dominate their markets, and how you can get those same results. Here’s your host Dave Woodward.

Dave Woodward:             Welcome back everybody. This is a fun new year’s beginning, it’s 2018. I am so excited for some of the crazy stuff that’s going to happen in 2018. One of the things I want to talk to you about real quick is a concept that I think most people really don’t understand. I was talking with Garrett White a while back about this and recently he had ended up doing one of his daily podcasts about the topic as well and I thought, you know what, I really need to explain this in more detail to our funnel hacking audience to really make sure they understand how this concept works in their marketing and in the things that you’re actually selling.

The whole idea here is what are you selling? Are you selling a commodity or an experience? I’m a huge believer in experiences. For Christmas and everything else I hate just getting normal gifts. For me it’s all about the experience. I love taking trips, I love providing people experiences that they wouldn’t normally have. Whatever that might be.

Just recently I ended up having back surgery and that’s a topic for another day but anyways, part of the experience I wanted for my boys to have was the experience of snowmobiling. They actually ended up going snowmobiling without me while I was getting surgery on that day but it was one of the things they loved. It was such a fun time for them, the four of the boys just took off and had a ton of fun just snowmobiling up in McCall, Idaho not far from where we live. It was one of the things that they continue talking about all the time.

I love taking trips with the kids and I love going to foreign countries and having to experience third world type of situations. Every other year I take my boys down to Mexico and we ended up going down there and while we’re there we actually end up working in a medical hospital basically. I don’t have any medical experience but while we’re there my kids have had the opportunity of actually working with plastic surgeons and working with general surgeons and eye doctors and everything else, helping them provide medical services to people who normally couldn’t afford them. Those are the type of experiences that they’ve continued to remember forever and ever. To me that’s what it’s all about.

Unfortunately for a lot of us in our marketing we end up going just kind of the opposite direction and our product becomes very price sensitive and it becomes very commoditized. I think it’s one of the things you have to really pay attention to when you’re out and really working on your product. So, take for example, I was talking with Garrett White a while back and his podcast, one thing he was talking about was he and his daughter had just gone out to dinner, they went to a Teppanyaki Japanese grill and he was saying the food wasn’t that great but what was exciting was the experience of having the chef prepare the food in front of them. After that they ended up going over to McDonald’s and got a McFlurry and he was just basically talking about you know, this is ice cream that is $3, $4, $5 whatever it is, but that same ice cream could be an experience and could be sold for a lot more.

I want to kind of talk to you a little bit about this in your marketing and how that works. So, take for example as far as ice cream. I love ice cream. My youngest son Jackson is the dessert king. Every single night he has to have some type of dessert and it’s all about the experience. So, take for example, when you go out to get ice cream you can go down to McDonald’s and get a McFlurry for $3 or whatever. You can go through drive-thru, through a Dairy Queen and get a Blizzard.

Or you can go to, like if you’re in Austin, one of my favorite places in Austin to go to is Amy’s Ice Cream. Amy’s Ice Cream is an establishment of Austin and they’re on sixth street and basically there’s always a line no matter when you go and it’s because of the experience. That experience basically goes back to kind of the whole Marble Slab type of ice cream where you go and you pick what type of ice cream you want, you pick what type of flavor and fixings you want added to that, and they chop it all up and they basically provide it to you in a scoop. Basically they throw it up in the air and catch it in the bowl. It’s all the experience. You spend anywhere from $8 to $10 for this little tiny bowl of ice cream. But it’s the experience and because of that Amy’s has become this huge popular place that everyone goes to in Austin to get ice cream.

The same thing happens in any other type of product or service. You have to think of, what is the experience that I can provide for these people? What are the things that they would really like or that they would talk about? Now, take for example on high-end coaching programs a lot of times it’s the experience. People spend a lot of money because they actually have the opportunity of going out and experiencing being with the guru and sitting in the masterminds and because of that, they’re able to get a much higher price point for that kind of stuff.

When you take a look at your own marketing, take a look and see what are the types of things that you can do to add to it, to not make it a commodity but to make it much more of an experience. It’s been one of the things I’ve looked at here at Click Funnels when we have a … One of our large rooms basically, where we have our mastermind meetings and everything else, we’ve actually toyed around with the idea of having other gurus basically be able to bring their people to Click Funnels headquarters and use that conference room as part of the experience for their students and things.

I’ve seen the same thing happen with Joe Polish in Genius Network and the experience that happens down there. Bedros, talking with him as far as some of his high-end masterminds, one of the things that he’s done is on his high-end masterminds … Where basically it’s a three day event, first day they come in and they’re with a coach and not all of them are actually with Bedros, most of them are actually with other coaches. They then have the second day where they basically come together in a group environment and are taught by a couple of different people who are specialists in different areas. But the third day is an experience where they then go out and if they’re in Vegas they typically go on a big hike and they hike up to one of the top peaks in that area. When they’re in San Diego they go out and they go surfing with Bedros. It’s that type of an experience that bonds that person more to the coach or anything that they might be working with.

This whole idea is one of the things I really encourage you, when you take a look at your marketing, what are the types of things that you can do to provide an experience for your buyer so that it’s not just a commodity. I’ve seen the same thing as far as Jason Flanagan’s done a lot of things in the whole Amazon E-commerce situation to where they’re bundling different products, where they’re no longer able to compare apples to apples. Ezra Firestone does the same thing. Take for example, if you’re selling a product on Amazon, I don’t know … I’m looking, right here I’ve got a Click Funnels water bottle in front of me. So, let’s say you’re selling a water bottle and that’s the product. Well, you can get a water bottle for $2, $3, $4. But if all of a sudden you start bundling it with different products and services where a person can no longer compare it to other water bottles, it now becomes an experience as far as the things they’re going to get with that.

Dollar Shave Club is phenomenal at doing this. Here again you think you’re going to go and get … Dollar Shave Club and Dollar Beard Club work the exact same way. Really what you’re buying into, it’s the experience. You think you’re getting a cheap razor for $1, the reality is you’re average cart value when you leave there is typically in the neighborhood of $50 to $100. It’s because of all the other experiences that you can have with shaving. It’s the shave balm, it’s the shaving lotions, it’s beard oil, it’s beard vitamins to help your beard grow thicker and stronger. It’s all those things of things that become part of an experience. Even though it’s a product, the person’s buying into the experience they’re going to have with that product.

As you take a look at your marketing, pay attention to the different types of things that you could do and look at what others are doing. Obviously we always spend a ton of time talking about funnel hacking. I want you to take a look at who are some of the people, leaders in your industry and are they creating an experience for the consumer or is it just a commodity? You’ll find that anybody who’s super successful, especially as far as increasing average cart value, the way they do that is by creating an experience for the user. Sometimes it’s not a physical experience. Sometimes it’s actual, it’s just a mental experience that they’re taking that person through. It’s an emotional experience where they have this emotional buying with that product.

For example, my wife loves Lululemon and she has an emotional connection and an experience by literally just walking into the store. The way it smells, the way it looks. It becomes this experience of shopping at Lululemon. Because of that they’re able to charge $75 to $120 for a pair of leggings that you could get on Amazon or Target for a ton less. But again it’s the experience of doing that and she will go on and on about why those leggings are so much better than the ones at any other place. That’s what she prefers, but it’s because of the experience. Others have now caught on to that and are trying to duplicate what Lululemon has done.

Just realize, even though you’re selling a commodity or a product you can still have an experience. Try to find different things that you could do to create an experience. A lot of that’s in your marketing as far as how you’re presenting it, what you’re saying. What is the picture that you’re painting for them?

With all that, again, I appreciate so much all of the people who listen to this podcast. I would love, if you wouldn’t mind going out to iTunes and giving us a rating and review. It’s something I’ve really never asked much for but I’m finding that it actually provides a lot of value to others. If you don’t mind, go to iTunes or wherever you’re listening and give us a rating and review. I will be checking those on a regular basis and commenting on those as well. Again, thank you so much for being a Funnel Hacker Radio listener. I wish you all the best in your marketing this year. 2018. Cannot wait to see how it goes for you, and again look forward to seeing many of you guys at Funnel Hacking Live real soon. Talk to you soon. Bye!

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Funnel Hacker Radio w/ Dave Woodward