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HGFish said..
To follow CSE's take on USP's - the lowest cost producer becomes really hard to beat. Businesses that have a loyal following may still make a living but if you read paul.j & Slatz's posts, it's tough.

Well, maybe. There are people who want the lowest cost product, but most smaller companies can't win that sale. The answer is to change the terms of the sale.

If the customer can't tell one board from another, then the cheapest wins - so you have to make the customer want something that only you have. Simple things like color, graphics, weight, etc. can be differentiators, but you have to make the customer want them.

"Just wait until you are trying to get the board on top of your car, you'll be glad you spent $200 extra for our "tough-light" board"
"Heavy boards don't get used. The thought of getting it to the beach will be a turn-off. Get our "tough-light" board and you will gain all the benefits of SUP".
"Cheap boards look cheap - don't look cheap"
"You have worked too hard to own a cheap sh#tty board"
"Earn respect in the line-up"
(I know some of these are silly, but you need to get people to think of something other than price.

The real question is; why are they really buying the board? Fitness, improve their surf, surf more, not look like a dumbass in the line-up, feel the speed, catch more waves, feel young, relive their youth, not feel stupid if they don't/can't use it, etc.

But there are other ways to differentiate that appeals to certain people.

"We ship for free" - it is amazing how effective that can be.
"Ding free guarantee: We will fix your dings for free*" *They are REALLY hard to ding, and we won't fix it if you drive over it ;)
"Happiness guarantee: If you don't like it, bring it back and swap it"
"Slash guarantee: The best bottom-turns in the industry"
"Get vertical so even Tardy is impressed"
"The whole board is a sweet spot"
"Stability guarantee: Don't fall off out the back - that's where the sharks are" ;)
"Surf like a grom even though your 50th was long ago"
"Look forward to the weekend again"
"Make the surf exciting again"
"Turn small sh#tty waves into fun"
"Faster than last week" (for race boards)
(With a bit of work all these could be a LOT better.)

You just have to come up with something that is unique, focus on it, own it in the marketplace, and make customers want it. I don't mean to be sneaky, I just mean you have to focus on the thing that you are best at - or add something unique (free shipping, replace for free, ding for free, etc.) that no one else does.

This is a serious topic which I don't do serious well its not in my makeup However I've read every post in this thread and feel I should contribute with my experience as a retailer be it a totally different industry but I've experienced the same as other retailers are going though.

The Stand Up Paddle Board Industry is just like every other industry. I was once very unique 10 years ago until stores down to road blatantly started stocking similar products copying my product some selling at discount prices week in week out, I call this bastardising the industry and sucking the margins out for not only themselves but the entire industry.I didn't roll over and continued stocking my product but I never dropped my prices day in day out. I first was pretty pissed and negative about it but soon used it as a positive and motivated me to go next level which I have done ever since. If a customer asks us to price match I would educate them that my product was a of a top quality and sell its design and overall finish and quality.We offer outstanding customer service with experienced staff that the customer feels very comfortable with making their decision. This approach does not always work however margin is KING in any retail business. You've got to sell a hell of a lot of low margin product ( volume ) compared to higher end product with meat in the margin and there is simply not enough customers on a daily bases to adopt this model long term for me.My passion is Longboarding,I've ordered custom made local boards from the same manufacture for 37 years,I support local people the best I can, i've only ever purchased 2 sup boards and yes from the same retailer and if I was ever to buy another I would be buying one from them without doubt,they may know who I am behind this post but thats another matter.I see some stores selling cheap surfboards but they add onto their sales with hardware which helps them achieve some margin.My daughters once working in a large surf chain (I called it a fashion store) they would not make a cent out of a board sale but they were trained to sell them every add on you could think of,which at the time I would laugh at because the add ons in most cases would cost more that the board,covers legropes,rash tops,wetsuites deck grips even wax.

In fact these people who discount are training the customers and in todays world customers are far more educated than they once were.We can spend hours with customers with design help only for them to use our well trained staff as a springboard and purchase cheaper like for like elsewhere or purchase online from companies that don't have a shop front.Yes this is disappointing as the same goes for the discount stores however be aware of what others are doing (offering) but don't waist time on this negative energy,use your energy to work on positive things for your business.
Remember in retail most stores have a LOST LEADER this is the product out the front or often the product advertised to get customers in the door,this lost leader will have very low margin however the retailer must try to sell the customer other products that attract FULL margins.
Location,outstanding customer service, product selection are just some of the key elements a good retailer MUST have. I don't agree with some retailers pricing in my industry but I never bag them,its their business and hopefully they know what they are doing and their business model is working well for them, nobody wants hard working people who in most cases put it ALLon the line for it to fail and lose everything. I was once a VERY proud Australian Made manufacturer employing over 100 hard working Australians but unfortunately cheap overseas product killed the manufacturing sector in Australia and the rest of the world.Now I'm a retailer in the same industry employing 5 (go figure) not great for the employment numbers.
Until you've been involved in retail you don't really understand what us retailers face day in day out,its a dog eat dog industry which is my sole dislike towards this industry.

Support your local retailer because if you don't you will lose them and we all like to hangout talk sh-t ,touch and smell the stock,I love visiting real surf stores/ factories and would hate to see this industry suffer and get wiped out. I take my hate off to all you retailers out there. We all have different business models and history shows what is working for some but this may not work for others,I wish you all the success in the world.

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baldrick said..
Intermission....

That's like the world we live in at the moment and I lasted at 1:46

CSE - just for interest sake, how many of your "differentiators" would get you over the line?

With retail today and the on slaught of online sales breaking down boarders any retailer that doesn't move with the times will perish, Discounting is here to stay weather you like it or not,Customers today are constantly being bombarded with discount codes left right and center, hence they are being conditioned to never pay full price and most won't these days, a prime example is remember your little local surf shop selling surf gear, boardies, tee's, bikinis ect, most no longer exist thanks to businesses like Surf Stitch pumping out discount codes daily, its just the new era of retail, Adapt or die

Just purchased a brand new Sunova Flash - $1,000 discount off RRP.... not that long ago I would have had to pay that for a second hand version - says something about the current state of the industry...
Consumer confidence is currently shot to pieces in Australia and will be for some time yet.
but I do hear that foil sales are strong...