Race to the Bottom

So here’s a fun one.  Wal-Mart just announced that they will price-match competitor’s “Black Friday” ads a week before Thanksgiving online.  You’re move Target, Best Buy et al.

But something to consider…

Retail is a race to the bottom.  First it was who could open the earliest on Friday morning (6am, 4am, midnight- now even the day before).  Then it was who’s “doorbuster” was the best.  Now that fight doesn’t even matter much anymore.  Because this is all just commodity competition.  Everyone has a 55” television- who can sell it lowest first to capture the dollars, right?

At some point, someone in the retail space is going to have to figure out how to get out of this race to the bottom.  Because even if you win, you lose. 

I for one won’t go near Black Friday shopping.  It’s a miserable experience.  I’d rather pay more than fight the insanity.  So here’s a challenge for you retailers- how could you change the paradigm to engage more shoppers?  Instead of fighting so hard for people who are only driven by paying the absolute minimum, why not find a way to grow the market by enticing the high-end?  I for one, would probably pay for admission (even just early admission) to a store if I knew what the prices would be and could get a better experience by limiting the attendance for a bit.  Or if price really is the driver- what about pre-orders and pick ups?  You could better control your margins, still scale your shipping to stores, and have a more accurate inventory.  I’m no expert, but these are just ideas.

The point is this- keep racing to the bottom and eventually you’ll get there.  The prices can only go so low.  The store can only be open so many hours.  And we’re quickly getting there.  This year’s prices don’t seem that great.  Everyone’s opening on Thursday afternoon.  We’re on the threshold of the bottom- where everyone is open 24 hours and the prices are all equally low.  And then what?  Hope to get your share of the spending?  Doesn’t sound like a great strategy.

Might be time to consider your work too.  Are you in a constant game of “one-upping” the competition?  Sounds like a race to the bottom.  And in that race, if you win, you lose.  So ask yourself- what are you going to do differently?  How are you going to get a premium for your product or service? 

Rather than try to win a race to the bottom, why not play a different game?

Subject Matter Experts versus Trainers

There is a big difference.  A Trainer might also be a Subject Matter Expert.  But a Subject Matter Expert is not necessarily a Trainer.

Don't make the mistake of putting the person who knows the most at the front of the room.  If they're too technical or too detailed, you'll lose the knowledge transfer.  A Trainer's expertise is in taking a complex subject and making it simple and digestible.  Subject Matter Experts have to be complex.  They deal with nuance and details and fix the things that only someone with intimate knowledge can.

Put it this way... Hank Haney is not the greatest golfer in the world.  But he trains the best golfers in the world.  And the best golfers in the world couldn't do what Hank Haney does.  Teaching and doing are separate skill sets.

So when you're trying to figure out who is best to deliver your content, don't assume it's the person with the most knowledge.  Don't worry about who can do it best; find the one who can explain it best.

He Who Cares the Most, Wins

Just about everyone knows you have to pick your battles.  You're not likely to win them all and even if you could, doing so just makes you a tyrant.  Anyone who's got a good EQ understands that there is a time and a place for compromise.

So how do you decide?  Here's my little rule- The person with the most passion wins.

After all, we both know that passion beats smarts.  So it really won't matter if it's the best idea that wins.  As long as the idea is sound, the results should be the same or better.

So when you reach an impasse with your team on what to do next, rather than try to figure out who's idea is "best" simply ask yourself, "who cares the most that will see this ship?  Who will be bolstered most by the win to take the momentum over the finish line?"  Pick that idea and watch the results happen.

Passion Beats Smarts

Every time.  If you can have them both, so much the better.  But when you have to choose, choose passion.

Smarts may know HOW to cross the finish line, but only passion won't stop until it's crossed.