The Basics of Boutique and Becoming Worth Every Penny

[Pesso]

Hey Square Readers, 

We hope you’ve started to dive into reading Worth Every Penny by Sarah Petty and Erin Verbeck and are enjoying it so far!

The authors break down the book into four main sections. Our next four discussion threads will be talking about each of these sections: 

1. Branding
2. Products, Services, and Customer Experience 
3. Pricing
4. Marketing & Selling

But first, let’s first lay the foundations of the plan by looking at the basics of this philosophy, and the framework of being “Boutique.”

The Basics 

As we discussed last week, the core of this book is working to get your business where you’ll get paid what you're worth without customers complaining. It’s about being able to carve a niche for yourself and get more customers coming in, and compete against other businesses the right way.

A big issue that a lot of businesses face is competition and how to handle it. Unfortunately, the most common way to compete is by lowering your prices, which is an easy way to end up cutting out your profits and going out of business. They explain that there are better ways to get more sales than just charging less.

They write, “You’ll learn how to create a decision-making filter so you can do what you love and charge what you’re worth… You’ll discover a new perspective—a fresh way of filtering all that you do, all that you sell, and how you price yourself for profit.”

Being Boutique

So how do you create this filter and start to make decisions in this way? The authors’ first step is to start looking and defining your business as “Boutique.” 

They define it as “the filter through which all decisions are made… When you’re boutique, your products or services are specialized and customized… the service you give to customers is more personal… And because your margins aren’t so tight, you can afford to go the extra mile for them… The way you approach branding, marketing, and advertising is different… Your price structure is different.”

Framing your business in this way gives you a distinct advantage over other businesses. The way you compete becomes not based on your price, but rather on this high quality of products, services, and customer care. They say your competitors will “never have the time or margins that enable you to make your products stand out in the market. And, they’ll never be able to have the relationships that you have with your customers. You’re not trying to get as many customers as possible; you’re trying to get as many ‘right’ customers as possible—customers who want to buy your products and services from you, at your price, because you are providing them something they can’t get anywhere else.”

As you start to examine your business, they suggest running decisions through their Boutique Filter, by asking yourself: “Am I approaching my business as a boutique business?” You can do this by following the principles they lay out across the book, and setting up your business across Branding, Offerings & Customer Experience, Pricing, and Marketing & Sales. 

Follow along as we read the rest of the book and start to form your operations in a more high ended way, and define your business accordingly. Get creative, and have some fun with it!

Next week we’ll start diving into the main sections of Worth Every Penny, starting with Section 1: Branding.

We’d love to hear your answer in the comments:

• How do you compete with other businesses right now?
• Does the distinction and definition of Boutique fit how you currently define and see your business?
• How do you feel about applying this framework to your business?

Feel free to share any other thoughts you have about this book. We can’t wait to hear your thoughts in the comments below!

Don’t forget to:

• View and Subscribe to all threads about this book
• RSVP to our Live Discussion 

Happy reading,

Pesso

[SavasFineArt]

I love the mindset of thinking my art business as a boutique.  It sets it apart for others and sets the mind set right there.  

I’m an artist.  There are a lot of artists.   Some good and some not so good.  I work toward fulfilling my mission.  Which already sets me apart from most other artists.  Boutique lines right up there with that and helps keep thing perspective of never discount my work.  

[Pesso]

Thanks for sharing, @SavasFineArt . That's so great that this is resonating with you so far! 

That's a really wonderful mindset and way to put it. What is your mission and what does set you apart from other artists? How else do you define that?

[Bronze_Palms]

I am very grateful to have built systems in the business because it kept us busy while we were growing and heads down so we did not pay attention to competition. That being said, to your question regarding competition, because we invest so heavily in R&D, automation, and payroll, we are efficient, highly profitable, and hard to compete with. We have been able to keep a boutique feel as the business has grown.

[Pesso]

Thanks for sharing, @Bronze_Palms ! I love all of this so much.

Focusing on you and your business rather than the competition is a great way to do it! Be so busy making a great experience that you don't even think about the other guys. What were those systems that you built?

Loving those investments and congrats on the high profit! What does that investment mean exactly? What and how exactly do you invest in R&D and automation?

Soo important and incredible that you've been able to keep the boutique feel. What things do you do that feel boutique to customers?

[Bronze_Palms]

We have a handful of systems - greeting clients, technique for the same experience for every client, close out proceedures, followup. Then, cleaning the salon so everyone is doing their part and no one has to pick up any slack.

[Pesso]

Thanks for sharing this extra info, @Bronze_Palms !

Love the automation and work in-advance for social media. It makes a huge difference to batch and schedule all of that, and use AI where you can, to make it less work in the long run, and be able to focus more time on the rest of the work. 

Those systems for customer experience sound really great to really make sure folks are happy and taken care of. Great job all around!

[Bronze_Palms]

We spend time with automation by using AI to create our social media captions (or draft them), to send out communication, to draft emails, and to schedule our social media posts. All of these help us continue to be consistent so we can continue to stay busy.

[DinaLRosenberg]

At Amityville Apothecary we are "boutique" by providing exception service with the knowledge piece. We are a completely niche brand and so I feel for us it's a little easier to be "boutique" 

We also create that boutique feeling by focusing on experience- which not only encompasses excellent customer service but the entire look and feel of our shop and shopping experience. Yes we are a store- but really we are a destination.

Re: competition... we are aware of what our competitors are selling at all times. There are often times where we will no longer carry particular items if they are available in other local shops. 

[Pesso]

Thank you, @DinaLRosenberg ! 

I absolutely thought of y'all while I was reading all of this. You're SO boutique in so many ways! From your education piece, to your concierge level service, and of course the niche nature and following of your business.

I personally know how your shop feels, but I'd love for you to explain here for other folks: how do you cultivate and curate that look and feel, and make yourself into a destination?

Dang, that's such a great massive differentiator -- if someone else is selling it, you don't want/have to. Your stuff is unique. I love that!

[DinaLRosenberg]

OK let me do my best to explain how we created the look/feel of a destination above/beyond just a "store". First we think about the senses and hitting as many of them as we can.

We want the store to be beautiful but also approachable. We aren't looking for the "retail" look. We want it to delight the eyes and a lot of that is done through color coordination.

We have the benefit of having an old building built in the late 1800s.. it just FEELS witchy so it's a perfect match for the type of shop we have. We have lots of rooms and multiple floors and even a garden. There are places to hide and lots to explore.

[Pesso]

Oooh, I love the idea around using all of the senses, @DinaLRosenberg ! Such a great thing for other business owners to keep in mind. Working in smells and movement and touch and sounds really can suck people into the experience and build an instant connection. 

You've done an incredible job at making it feel approachable. It's so not stuffy, and really invites folks to pick things up, open drawers, and try. I've been in other similar shops and I was always afraid of touching things, and never had that in your place.

Your building really is a massive asset. Walking through it feels like an adventure exploring different rooms, never knowing what's around the corner or behind a door. 

Thanks again for sharing so much!

Hmm, looks like that picture didn't load though-

[Doran]

We are boutique by crafting each facial service to the specific customer.  None of that cookie-cutter facial for us.  I always start with an in-depth skin consultation and go from there.  I think clients really appreciate the educational part about THEIR skin.  Also, the little touches like a bag of samples when they leave, knowing their favorite drink (iced coffee, tea, water, etc) to have when they arrive, and a post-treatment wrap-up email they can refer back to between appointments.  

I'm aware of my competition.  There are facial studios all around me but none are like me.  If I find they are carrying the exact same products I usually go on a hunt for something new.  

[Pesso]

Thanks for sharing, @Doran !

I love that level of personalization and going above & beyond to customize, educate, surprise & delight, and follow up. Those are such great strategies that so many folks could learn from and easily implement in their own businesses!

Do you work in the cost (Time and Money) of the extras into your prices? Or do you eat the losses there to make up for it in loyalty?

I'm so glad that your customers appreciate that heightened level of service and everything you're providing. I would totally come to y'all too! 

Good call on being aware on what they're doing, and similar to @DinaLRosenberg , changing up your offerings to be different from what the others are doing.

[CareyJo]

I love this!!!  I would so be your client if I lived there!!  Fantastic!!  We have a brand new practice opening here and I'm going to tell them about you because they desire to do things differently as well!!

[CareyJo]

I know this sounds really conceited, but we actually don't try to compete with other businesses.... but let me explain.

1.  In Montana, we are so spread out that all service companies must travel to get clients.  There's just no other way.  Small towns outside of our actual cities don't have service companies in them, so everyone travels in.  We don't focus on competing simply because there is no point.  We have over 60 service companies in our field, in just ONE of the small cities we're adjacent to... and that's an area of about 60k in population... that's a lot of competition for such a small area!  We would literally kill ourselves if we tried to compete!  Not to mention, the great majority of them, are just like us... small mom and pop kind of shops.  Because we serve all of southwest Montana, we don't need to focus on just one area of customers and some of those companies aren't willing to travel.  That gives us an edge.

2.  At a minimum, 90% of those companies do not have a degree in the field that we have.  They don't have the education behind them to back up their business.  Because we've been in this field for 25 years and the communities know this about us and because my husband's skills have such a high reputation, we don't have to push to tell people that we're different.  They already know it.

3.  Lastly... our mindset has always been that we wish those other companies well.  We don't need to beat down another company to make a buck.  Our only concern is whether or not the customer is being treated correctly and receiving the quality education for their equipment.  We've said it dozens of times (to ourselves) and will probably say it dozens more... "good luck!" simply because we know who those other companies are and we wish the customer well based on their choice.  Believe it or not, nine times out of ten, if we've been out bid, the customer will be dumb enough to tell us who they went to.  You cannot work in a field like HVAC and not know how the other companies work and conduct business.  All techs end up at the same supply houses and they all talk.  And mind you, most of them are employees who have no loyalty to their employers.  It also doesn't help that we have worked for five other major companies in town and have been around the block a few times.  We KNOW the competition.  We know their skills and education, or lack thereof.  We know how they work.  How they charge.  How they treat people.  We just walk away and let them do their thing.  Eventually the customer will realize that they've been had and made a poor choice.  It's not our responsibility to prove that to them.  There are other fish in the sea and God will provide.  The best advice I can give on competition is - GET TO KNOW YOURS!!!  

Yes, Boutique definitely fits us for all of the reasons that I listed in #3.  We have the ability to offer our clients things that others can't... 25 years of service in the industry.  Education.  Master level technician.  Best diagnostician in the area.  All forms of heating and AC.  Boiler specialist.  Not charging mileage for travel.  Not using flat rate charges for travel.  Already being a slightly lower price with better services than other companies.  Etc...

Since the term Boutique Business is fairly new in being a popular term... I hadn't thought of it until I started reading the book and then quickly realized that we already are.  It's been around for over 10 years but we're just now beginning to hear it as being common place.  That might also be because Montana is 10 years behind the rest of the world, lol... But reading that has been like an acknowledgement that "oh!... ya!... we ARE!!"  The framework is already there, that's how we set ourselves up without even knowing it.  When we opened both of our HVAC businesses, we did this.  We've focused on being specialized since day one.  Both in what we offer and in how we do business and now that I know that, it gives me this mental edge that I need to remember to stay focused on going forward and use it to create our next venture.

I should also add my answers to the homework questions for chapter 1, since you asked me to.

1.  Q:  What's the coolest thing we do?  A:  Our customers have told us, many times.  We offer the best service and know what we're doing.  They trust us and don't have to worry when they call us for service that it will get done right.  If we've been out of town and they had to call someone else, they feel SOOOO BAD for having to make that call.  They call us and tell us that they had no choice but now we need to come and re-fix it.

2.  Q:  Do your top 10 clients agree?  A:  See #1.

[Pesso]

Thanks for sharing all of this, @CareyJo !

This is such a great way to look at things -- Focus on you and what you're doing, trying to be the best you can for your customers and for yourself, follow your values and principles of expertise and integrity, build a reputation and let the rest come to you. I love it!

I'm so glad this framework has resonated with you and that you're getting so much out of the book!

That is such a great callout to get from your customers. Trust is key and having earned that really means you're in a great spot.

Thanks again!

[Stacelyn24]

In the realm of nail salons, competition can be fierce. While we pride ourselves on offering top-tier services and quality products, we understand that it's about more than just the nails. Clients come to us not only for the exceptional results but also for the entire experience we provide – the ambiance, the personalized attention, and the sense of relaxation and indulgence they feel when they walk through our doors.

When it comes to the distinction and definition of a boutique, it aligns perfectly with how we see our business. We've intentionally set up our salon to embody the boutique model. We focus on curating a unique and intimate atmosphere where each client feels valued and pampered. It's not just about the services; it's about creating a memorable and luxurious experience from start to finish.

Applying this framework to our business feels natural and essential. It reinforces our commitment to offering more than just a service – we're dedicated to providing an unforgettable journey for every client who walks through our doors. By embracing the boutique model, we differentiate ourselves in a competitive market and cultivate lasting relationships with our clientele, built on trust, quality, and an unparalleled experience.

[Pesso]

Thanks for sharing, @Stacelyn24 !

I love all of this! It's so important and I'm so glad that you recognize it and work so hard to create that. 

I'd love to hear more about this! What exactly do you do to create that sense of relaxation, indulgence, luxury, uniqueness and everything else? 

[CareyJo]

❤️❤️❤️!!!!