Why does a Lacoste shirt sell for $80, when another company could make an identical shirt, with a penguin embroidery instead of a crocodile, and only be able to sell it for $20?
I own an apparel company, www.sandshack.com,and therefore, I know how much it costs to produce various articles of clothing and accessories; for instance, I can make a high quality baseball hat for under $2 and a polo shirt for $3. I also own a coffee company, www.koficoffee.com, and I know how much one pound of green coffee beans cost on average ($1.18). Why then can companies like Lacoste sell their shirts for $80, and Starbucks can sell a pound of coffee for $12? It is the brand and name they have developed around their crocodile and mermaid logo that makes their products valuable and sought after.
But there is more to a brand than its logo.
It doesn’t matter what business you are in or what you sell, to succeed in the long run you must build a brand around your product, whether that be a service or material. As an entrepreneur you decide what your brand should represent. Choose something you are passionate about, because as the leader of the company it is not only your products that will represent your brand, you also must live by the mantra your brand is about. For example, after starting Sand Shack, my life and style has molded around the fashions my company creates. Sand Shack’s brand represents the ocean, the beach, and the fun, free, and preppy lifestyle they entail. In addition to that, Sand Shack is an active participant in ocean conservation and donates 5% of the proceeds of many of our products to ocean conservation. I live by my brand; I wear its clothes,and instead of using some money to help grow the company or fatten my wallet I donate it to ocean conservation efforts.
Every little thing your company does creates the brand it will become known for. Maintaining a tight focus on building your brand, even if it costs a little extra now, will pay off in the future.
What makes one better than the other?
