In my talk at ClickerExpo last year on "Growing Your Business", I spent some time orienting people to the principles of 'Value Leadership'. Those of you who heard that talk should keep reading but everyone else may be a bit lost (apologies). In any event, to jog memories, one of the points of the talk is to recognize that a business must clearly choose the value it wants to deliver to target customers. Some choices lead to a decision to pursue a strategy of Lowest Total Cost and other choices lead you to a strategy of Product leadership. Just as importantly,in a market where competitors are not clear about the value they are delivering to customers ,or where all the choices seem to be at one end of the spectrum , you can be sure that sooner or later someone will figure out that there's a sizable underserved opportunity in the gap and move to fill it. Their success will spawn competition, maybe even on large scale.
We're now seeing this dynamic play out in the pet boarding and day care business. Historically, the vast majority of doggie day care and boarding facilities have delivered a plain vanilla, utility service at a low nightly rate. But to be frank,even today it's a safe bet that the vast majority of pet owners do not say that their boarding facilities rank high on their list of "good deals". Among other things, the price seems high for what is delivered. The bottom line is that many pet owners are reluctant, rather than enthusiastic, customers of a boarding kennel.
So the market has responded. One of the reponses was written about in the NY Times , 'A Dog's Life Upgraded'. (online access at NY TimesSelect). The piece documents the emergence, across the country, of higher end boarding facilities that cater to pet owners who want a great experience for their dogs while away from them. These customers are not looking for an adequate or safe or convenient experience. That's insufficient. These owners are looking for an experience that will make sure their dog has at least as good a time on vacation as they do.
Where are some of these places? LA or Manhattan, only right? Nope. Try New Germany Minnesota (Top Dog Country Club). Or Madison Wisonsin's Club Bow-Wow. How about Mazzus Canine and Feline Hotel in Philadeplphia, or the Holiday Barn Pet Resorts in Richmond, VA. Then there's steel town's Pittsbughh PA, Cozy Inn Pet Resort and Orchid Spa. And of course, as you might expect, Canyon View Ranch near Malibu CA.
What's next? Many of these places are one or two locations, but I would expect investors to make money available to entrepreneurs who can expand their business models to multiple locations ahead of imitators. If you are delivering a new level of value but already understand how your business model profitably delivers that, then you have a big advantage over anyone else. Seriously consider going ahead and replicating your model's success in new location (s).
