[PMC] Expensive commodities 😤

You do not want to be seen as an expensive commodity.

Those breed resentment.

I’ve seen this here in Sonoma County. The Tubbs fire in Fall 2017 wiped out something like 5% of the area’s housing stock. That’s in an area with an already-very-tight rental market and an already-very-expensive housing market.

I know many people love their houses, but housing is sort of a commodity, in that it’s fungible (capable of mutual substitution). The whole idea of the comparable in real estate is based on the idea that one 3-bedroom, 2-bathroom house is equivalent enough to another that you can determine the market price of one from the sale price of the other, provided they’re within the same market.

So when something that should function like a commodity is expensive, people get resentful.

I hear lots of people talk about moving away from Sonoma County (and the Bay Area in general) because something that should be priced like a commodity (housing) isn’t.

How about your services? Are they actually a fungible commodity (capable of mutual substitution) but priced like something that’s rare and exclusive? If so, then I’d bet you’ve got a problem.

The solution, of course, is to offer something that’s not an actual commodity. There are several ways you could do that. Cultivating rare, valuable expertise is my favorite one, because it solves multiple other problems simultaneously.

Wonder what to say in your marketing? Experts don’t. They’re overflowing with things to say.

Wondering why clients boss you around? Experts don’t. They lead engagements, and persuade stubborn clients using insight, not force.

Wondering why you’ve reached a rate ceiling? Experts don’t. They have multiple ways to increase profitability without cranking out more hours.

The path to expertise is not easy, but I’ve mapped out one–called The Expertise Incubator–that might be for you.

-P