—Andy Warhol (1928 – 1987)
American artist who was a leading figure in the visual art movement known as pop art.
Have you ever wondered how some people seem to make money for breathing? (The Academy Awards are a good reminder of that. . . ) It isn’t because they are smarter or necessarily given more advantages. Some of the biggest successes and fortunes in my lifetime have started from a garage.
So what is the defining factor? What sets these individuals apart?
The longer I study business and the difference between successful businesses and flops, I have come to realize the difference comes down to one phrase: perceived value.
This is probably why Andy Warhol said it was a true art. As with any art, value is determined by the end user. Many incredible artists starve because of three basic reasons:
- They fail to identify the values of their audience and then deliver that value.
- They fail to communicate the value to the right audience in the right way.
- It costs more to create it than what people are willing to pay.
Unfortunately, most perceived value is what your audience learns from your marketing message. Ferrari can sell a vehicle for drastically more than what Toyota can sell a vehicle. The essential function of both vehicles is the same, but a person that buys a Toyota is looking for economic and pragmatic solutions. A person buying a Ferrari is more interested in power, speed, and social standing. What they value and their ability to buy that value.
As a side note – there are only 39 Ferrari dealerships in the Continental United States. Compare that to the 1,234 Toyota dealerships in the same area. It boils down to perceived value and how you communicate that value.
What are you worth and are you communicating that worth?