Uncomparable: anchor a new mama
2008-10-15
You know how baby ducks think the first big creature they see is their mother?
In the book Predictably Irrational, tests show that people do the same thing with prices.
When we first consider buying a product or service, the first price we see is the anchor to which we always refer. Cheaper than that seems cheap, and more expensive than that seems expensive.
I noticed this when I moved from New York to Portland. Everything seemed so cheap! In New York City a little 1-bedroom apartment would cost $1,000,000, while in Portland a nice 3-bedroom house with a yard would cost $150,000. Amazing!
Then I'd hear people complain how expensive Portland was - because they had moved there from even-cheaper places like Idaho or southern Oregon. I had anchored to New York City prices, but they had anchored to Idaho prices.
Now, here's where it gets interesting...
From 3000 B.C. until 1990 A.D., a cup of coffee had historically always been under a dollar.
So how did Starbucks successfully start charging $4 per cup? How did they get people to switch their price-anchor to consider $4 a normal (not expensive) price for a cup of coffee?
They made sure it was such a different experience, that you could not directly compare it to your previous coffee-buying experience.
They focused on ambience, to make it feel like a continental coffeehouse. Instead of small, medium, large, you say short, tall, grande, venti. They made drinks with expensive-sounding names like Caffé Americano, Caffé Misto, and Frappuchino.
They did everything they could to make the experience feel so different that you would not use the regular “cuppa joe at the diner” as an anchor, but instead would be open to a brand new anchor.
This is what Cirque du Soleil did for circuses, too. You'd hardly think to compare it to the old Ringling Brothers circus with its sticky-coke-covered benches and dumb clowns selling popcorn in the aisles.
This doesn't always have to move upscale, either. One old-fashioned traditional CD distributor complained that CD Baby wrecked his distribution business, since potential clients would now ask him why it cost more than $35, why he couldn't pay them every week, and couldn't show them the name and address of everyone who bought their CD!
So how does this apply to you?
Can you say that your product or service is cheaper-than, more-expensive-than, or about-the-same-as the average price for your product or service from competitors?
If so, can you instead imagine doing something so different that your answer to that question is, “What competitors? There's nobody doing anything like this!”
Instead of being yet-another wedding band, maybe you become a unique service that writes a custom song for each member of the wedding party and family.
See “reversible business models” for more examples of thinking opposite.
(P.S. Whether you like their music or not, you have to admire how The Polyphonic Spree and The Residents were uncomparable to any other rock band.)
Doesn't this idea of "no one's doing anything like this" kind of run contrary to all the CD Baby statements about "style", though? It has been so rigorously drilled into us that people desperately want to compare what we do to SOMETHING. I agree that the Residents totally invented their own game. Maybe, in terms of somehow MARKETING ourselves, we can come up with something, but that is a REAL challenge.
Good point!
Excellent post! I have been thinking about this a lot lately. Taking something that is common, then just doing something so new that there's few competitors.
With my blog Lyved, I'm turning it into a online magazine; a blogzine if you will. But what is completely different is that I'm keeping Lyved extremely positive. I'm also infusing a variety of topics in one. I'm combining news, personal development, business, and lifestyle all together.
I've been searching for a similar online media property doing the same but I really can't find anyone. Huffington Post comes close but they're more political and carry the same negative news as the mainstream media.
Being different is one of the major keys to success. Here's a great quote: “…success is related to standing out, not fitting in.” – AMC’s Mad Men
Again great post Derek!
-Andrew
David: (first comment) - believe it or not, I woke up this morning thinking about your comment.
I think the difference is this:
It's great to compare yourself to others. People find it useful. When Harry Connick came out, he was "the new Sinatra", and that hook alone made him famous. Easy to tell your co-workers at the office about the new Sinatra.
If you're really ready to be a truly innovative product or service, though, there's still a comparison. Starbucks is still a coffee shop, but so different that they could break the price-anchor. Cirque du Soleil is still a circus, but a classier one than Ringling.
Either way, you need to be able to describe what it is you do - and I think that was my main point you're referring to. You still can't say, "We're like nothing else, just check it out." You have to tell people what it is, in a way that is easy for them to understand.
I love this a lot! A great side effect to this is moving from being a 'red ocean' competitor to being a 'blue ocean' innovator--way more powerful (and positive!).
Plus, I think you can still be innovative WITHIN a style. Bowie, Madonna, Prince--all innovators, all stand as the control in the experiment that their musical offspring are judged against.
But they're still pop, funk, glam, etc. They just took it to the proverbial 'next level' and never looked back.
I know these probably aren't new references to you, Derek, but to anyone else wanting to do a little more research on this, check out blueoceanstrategy.com and http://www.sethgodin.com/purple/. Both are great books on innovation and great online resources to boot!
Great point. I'm not sure where I fit. I move all over the place when making music and art. I don't know what happens to me but I just do a certain thing one day and the next day I'm in a totally different space and follow the lead.
I've always wanted to be different but it seems the only time I arrive at that is when I'm not trying. When I try to be different I think I end up copying something. When I'm totally clear and free something wonderful happens and perhaps I do arrive at that new contribution level. Isn't that what true Art is suppose to be? A New contribution, something that hasn't been done before so that we're adding to the big picture in time and therefore become worthy to be studied in later generations.
I'm focused and trying but it's when I don't try so hard that I come closest.
I'm not sure I'll ever put my finger on the answer but I keep moving and as they say we're only as good as our last work, last performance etc.
Very stimulating stuff Derek.
There is a saying: "Be You And Change The World" which I think points to one often overlooked yet significant factor: we are all individuals who can offer our own "spice" to whatever possibly otherwise generic thing we do.
So rather than imitating any model success formula, I prefer to ask what can I add of myself (that nobody else has!) to make the/my product that "thing unlike any other" in some way?
That seems to be the question that unlocks things for me--
One must learn to dare to be different, but make sure it's in a positive memorable way. I want to
embed my name into the long term
memory of current and potential
fans.
Nice ideas here Derek. Music world needs more individuality and less parrot fashion-a-bility for sure. Residents are amazing, original and fun. in a "league of their own" which is the place to be. To me, Polyphonic Spree sounds/looks like a cult worshipping Brian wilson, flaming lips,POP rock etc and their visual presentation seems more original than their music.
Nice articles and musical inspirations, thanks.
Derek Sivers,
You are awesome, this is great stuff you are sharing, thank you!
You are incredible and have so many awesome make you really think points. Thank you so much, YOU ROCK
I have a problem with the conclusions derived from the examples.
Starbucks did not re-define what a cup of coffee is, and magically get people to pay four dollars for what they previously paid a dollar for. That's rather insulting to humans in general. Starbucks simply popularized espresso-based drinks. The silly names for sizes of cups probably only hindered their business by intimidating people. They built their success on taking a product that people in europe were already paying four dollars for, and sold it here. Furthermore, you can still get a regular brewed coffee from Starbucks for a little over a dollar. It may taste a little better than Tasters Choice because its fresh roasted, and that is why people would pay a little more than they would for it.
And Cirque de Soleil took the exciting acrobatics from the circus-model, removed the tired and controversial elements (ie animals, what with people being increasingly aware of their treatment).
So if you want to get at the 'secret' of these two businesses successes, if there is one, it would not be that they dared to be different, it's that they dared to be better. Being different for the sake of being different - sure, that's the Residents. Being positive for the sake of being positive - that's the Polyphonic Spree. Yeah you can attract a cult following for your quirkyness, but then you're still just pandering, and what if you decide to grow, then you risk losing your entire audience. Wouldn't you rather just excel, and draw people to your product or act because its simply good?
I have a theory that humans can recognize good stuff, that it doesn't necessarily matter what 'genre' it is, if it really gets people moving, or makes their hairs on the back of their necks stand up, then you've got something there. I see a lot of Alice Cooper interviews on tv lately, and he always goes on about his groundbreaking theatrics, but if you listen to the first three Alice Cooper albums (when it was a band called Alice Cooper, not just a guy called Alice Cooper), they're very good albums. They would have prevailed even without all the halloween props. Instead the halloween props focused on the singer and he 'became' Alice Cooper, so only one guy had a career from that point on, instead of a whole band.
Some people find the expression "it's all been done before" to be depressing, but why can't it be empowering? Marilyn Manson did Alice Cooper all over again and it worked pretty well for him, but it worked because he updated it, not because he was trying to be 'different' or 'creative'. Art may be the only activity in which if you try too hard you fail. And yet, you can't slack off and expect accolades for presenting a polished turd, either. Now that doesn't mean you have to be all earnest and honest with your act, unless you want to - it worked for Springsteen. I think humans like to see other humans be awesome. Period. That's all that is required to draw a crowd, anywhere.
Great post Derek...
it reminds me of the phrase "perception is reality"...
We have to strive to create value in our customer's mind. For me personally, I'd rather be seen as "more expensive" than my competitors - "gross profit" is what puts money in my pocket.
I think everything you do - from your name, logo (if you have one), website, business cards, email signature, blog, myspace page - EVERYTHING - combines to form the "perception" in the market... and you always have a choice in how you approach each one.
Some of the business books in your list(most notably Michael Gerbers' Emyth series) are great helpers...Bottom line is it must be real and genuine - "do what you are" is the mantra.
Keep the great content coming!
Cheers,
- Gary
So many people so many taste's
As a musician you can completely get lost in your mission to be succesful, that you miss enjoying life. In the course of time you have good and bad idea's for your carreer, good ideas work, but bad ideas work for you( it make's you aware of how things work)
I say anchor the old and take it to the future, make a new styling and see where it goes.
It's a slow game because most humans need some semblance of the familiar before they bridge to the unknown. Thankfully there are those who charge in, but it appears they're the minority. I wonder, would Starbucks have done it if they weren't dealing with a product people already knew about?
I believe there is the essence of timing and dharma with anything.
Salem from Jones
THE MUSIC BUSINESS IS NOT ABOUT WEARING PANTIES OR NOT. YOUNG WRITERS AND ARTIST NEED TO REMEMBER IT'S ABOUT GREAT SONGS AND BEING TRUE TO YOURSELF AND WRITING ABOUT THINGS YOU KNOW ARE TRUE. PEOPLE, PLACES, FEELINGS. I'M TOO OLD TO REINVENT MYSELF BUT NOT TOO OLD TO CONTINUE TO WRITE BETTER SONGS. I DON'T THINK I'VE EVER PAID FOUR DOLLARS FOR A CUP OF COFFEE. ACTUALLY, THERE'S A SONG IDEA. KEEP US THINKING, DEREK.
Io credo che il prezzo da pagare deve essere paragonato al servizio che si riceve.Se 35 dollari sono pochi e magari pagando 50 dollari si vende di più,è meglio pagare 50 dollari che 35.Tutto dipende dal servizio e dai vantaggi che il cliente riceve pagando di più.
I loved this article - and even more I loved the mouse-on-a-frog-boat photo that suddenly scrolled into view right at the apex of the post. I had a little beyond-mere-words satori moment when I saw it. So thanks
Your Berkley speach is the best!Great stuff but now that the boom is over so is Starbucks and the others who appeal to egos.Many fast food places give you many coffee choices for much less.The $.99 per song era we are going through is being challenged by the $.60 per song Corporations and soon cheap music by the song will be a loss-leader for other money making endeavors of these corporations once they gain the attention of the masses. Then the artists will have to do with much less money per song. Staying ahead of this rat race will be a challenge. but remember that the lower to middle classes are the big customers of most artists.
Derek, this seems so applicable to live shows and distribution methods, yet I see so few bands doing it. Look at how Daft Punk's "Plasma Screen Pyramid" stage set up influenced their trajectory. In 2006 when they premiered the set up, they were rapidly falling out the limelight. That show garnered so much buzz, that not only did they revive their status as an international touring force, but they've become more relevant than ever. Similarly, acts like Girl Talk (stage invasion), Roger Waters (Inflatable Pig), Of Montreal (Karaoke/Nudity), and the Polyphonic Spree (Quantity of performers/outfits) have all found ways of separating their performance product from their contemporaries. Now, going to see a random DJ is no longer comparable to the riot that occurs when 30 crazy fans invade Girl Talk (Greg Gillis)'s personal space. The result is him playing 2 nights in many cities, and having constant blog attention. The same goes for new distribution methods like the Arctic Monkeys giving away their demos at early live shows so their fans could come back and sing along, In Rainbows, Bloc Party's album release announcement preceding online distribution by only a few days, and Janelle Monae's multiple EPs linked to form an album a la old serial films and novels. All were "blog-worthy", the new version of newsworthy, and saw each band's stock rise considerably. Derek, do you think this kind of "different experience" is just novelty, or a legitimate way for bands to utilize the addiction to new information of the internet music scene to make names for themselves?
Hi Derek,
I've got something that is along these lines, but have been afraid of pricing too high. I've got a DualDisc - hybrid CD and DVD with the DVD stuff a totally new kind of product. Anyone who sees it is amazed and wants one. I settled on a 19.95 price point because I was concerned about breaking the 20 point. Anyway, love your input on this. You can see what the product is at www.visionsound.com.
Peace,
Ben Dowling
I would have to say that when deciding to price our CD, I upset my partners due to the fact that I wanted it to be more expensive than all of the other CD's on CD Baby. Have I sold any CD's yet? Just one. Have I decided to lower the price? A few times, but then it would be like all of the others. I believe that our CD is different. It's not better than any other CD out there, but I do believe that it is different. I priced it high to get a reaction. Good or Bad I can't control, but if they hit on it to see why it cost more..... well then I rest my case.
Something to think about: a Hollywood executive once told me that what Hollywood always desperately wants is a new movie EXACTLY like a recently successful movie -- but with one twist. One. Only one. Two twists and it's too much. One twist and they'll fall all over you.
I think this is worth thinking about. In a couple of ways.
First, when it comes to marketing, Hollywood is right: this is the clearest way to market something, giving people what they have demonstrated with their wallets that they want, with just enough variation to pique their interest. (Even the Hollywood sequel is built on this concept - think about them)
But this works because Hollywood is a marketing industry. The marketing precedes the product.
As an artist, however, I make what I make, and then have to poke around to find a niche for it.
Let's make this personal: with the help of a devoted intern, I spent three months this year asking hundreds of listeners who I sounded like.
About a third said, I have no idea. The rest gave answers all over the map. I mean ALL over the map.
Now, almost all of them really liked what they heard - I got a nice bunch of fans for my efforts. (The resulting elevator pitch: "A mix of SUFJAN STEVENS art-folk and GILLIAN WELCH country, sung in JEFF BUCKLEY's voice") But my being a "niche of one" is not proving to be a great marketing tool. Quite the opposite. It's still a one-by-one struggle to get people to listen in the first place. Fans can't explain back to me what they just heard.
What if the truth is that for oddball-artists there really is no silver bullet? I beat my head against the wall, I rack up great reviews on blogs, I pick up email addresses for my list one at a slow time.
I guess for people like me, the question might be: what emotional/personal need does our music fulfill in the people who love us? I keep thinking that if I could answer that in some easily definable way I might find an inroad.
But maybe not. What if each listener has a completely disinct and personal relationship to my songs? In a sense, that's been the response I find most flattering, but it does explain, maybe, why my listeners don't run around excitedly evangelizing the Gospel of Dudley. So to speak.
Is there no answer? Or is the answer just to plod on the way I am, gathering one email at a time until I'm world famous at 70.
Seems like there must be a better way.
Hi Derek, would love to see the day, perhaps sooner than later, when "competition" and "comparison"
was not part of the enevitabilty of a lifes anchored experience. Why? Get 10 innocent children playing together, they're happy just Experiencing the discovery of what they can do and where's observation of what another can do that oneself is unable to keeness of interest, sharing and learning all with joy. Remember those days?
Move those children on a few years,
line them up to race say 50 metres and you've CREATED if only for a short while 9 LOSERS. Do this regularly and allways 9 losers are caused in most parts of the world.
After a while those who did'nt "win" begin to exhibit the seeds of "loss"[legion for some]. Inferiority complexes just to name one, because of somebody else's "standard" they were not designed to achieve, too fat, too skinny, short, tall, different metabolic rate etc.
So “What competitors? There’s nobody doing anything like this!”
THERE'S NOBODY ELSE WITH YOUR FINGERPRINT...YOU ARE UNIQUE..
I remember at a meeting in LONDON where you defended "your open to all" cdbaby policy for putting music on your site. You said simply "who are you to judge" whats good or bad, I would endorse that again.
Gnarls Barlay had an amazing line in a song, "everybody wants to be somebody else and nobody wants to be themselves. So will the real Elvis stand up please, for rockers, for rappers Slim Shady will do.
So find your standard[these have to be real] and they will be your ANCHOR, that FOCUS thing mentioned
elsewhere.
Respects.
OZ
PS. A couple of final ponders.
Somebody BUYS "your" song/music. If it cost you nothing to make it and they've PAID for it, do they have more rights to it now that they own it?? You buy food, eat it, who does it belong to.
I think about this issue alot. My product and music is medically proven, and the most important part is that it is made peacefully by people who usually are at war.
I believe that this, in and of itself is a value to expe
rience. It is worth more. The big breakthrough has come through this week, when I notice (even as I write this), the importance of relating it to my potential customers needs, vs. my valuing it.
Does this make sense? I would like to focus more upon what the music does to help the potential user. This blog entry is making me wonder how I can take that line of thinking further, e.g. "What unique difference does this add to the benefit of the listener using this music? How will it uniquely help them?"
Eliana Gilad
http://www.voicesofeden.com
Well it turns out The Polyphonic Spree and The Residents are both different, non mainstream and just plain bad.
A lot of "just plain bad" gets noticed because it is just plain bad. Kill Bill and it's follow ups used a certain amount of just plain bad music. Woo Hoo by the 5.6.7.8's was outrageously just like the movies but it caught
Quentin Tarantino's ear.
Crap is often king. Steam's "Na Na Hay Hay Kiss Him Goodbye" is on the all time hit list. Used over and over again in movies every few years, yet it was to be a throw-a-way "B" side of a single.
In the days of 45's the producer would often create something really bad so the Radio DJ's would not "flip" the record and the "A" Side would get airplay. Phil Spector always put an improvised jazz track on the back of his singles. "Na Na Hay Hay Kiss Him Goodbye" a just plain bad throw-a-way track, to the embarrassment of the Producer and his artist, became the A side and number one pop single in the Billboard charts. Some say it was "flipped" by DJ's others say it was the Record Company's choice. The creators of the song & record thought it was so embarrassing they refused to put their names on the it. Instead a nonexistent group, "Steam", was created. Crap is king!! all hail Crap.
I put out two original CD's both with different fresh new approachs to Kosher Music. Promoted, gave away, toured, donated and like the song on "Don't Eat Pork” CD Says I now have Bupkus Blues. So it’s on to new music
Great records and perfect tracks are only a blessing for the creator of such. If you are one of these, and I consider myself to be there in some ways, do not expect the average person to recognize the layers of arrangement, devine lyric and sound you created, as you will be disappointed.
Dressing up old hits in new clothes works! Can you say Tom Petty. The average record executive's want of "something new and original" is code for something identical to a currently tune on the top ten. He's a bean counter, don't cha know. This does not include Clive Davis.
Bottom line, do what cha do and if lightning strikes call me and will do lunch.
In response to the idea that "It's all been done before"
Imagine someone from the 1500's beamed into 2008. Wonder if "This has all been done before," would be their first reaction.
New ideas are gushing forth in ever-flowing streams as the universe expands outward.
We can choose to be on the leading edge of that expansion and help shape the future or we can repackage something that's already in existence and be somewhat comparable. Both paths are valid and worthwhile. Both paths give us the opportunity to connect with fellow human beings. Both paths can be a lot of fun!
If we choose to dance on the leading edge, (and again, neither path is right or wrong, superior or inferior) but if we choose the leading edge,no doubt we will be uncomparable.