The Premium-Priced Entrepreneur

Posted on December 14, 2025 by anentrepreneurswords

What do the following have in common? A To’ak Chocolate Bar, Sapporo’s Space Barley Beer, the Shure KSE1500 Electrostatic Earphone System, the Rolls Royce Phantom Serenity automobile, and the Bunn Tiger XL Super-Auto Espresso Machine? OK, here is a hint. The chocolate bar costs $260; the beer retails at $110 per six pack; the earphone system costs $2,999; the Rolls Royce runs $1.1 million, and the Bunn coffee machine is $12,000. It is obvious that all are ultra-premium products. A Hershey Bar at Sam’s Club can be purchased for $.57. A six-pack of Bud Light is about seven bucks. For less than $20 you can buy Philips SHE3590 earphones. A Toyota Corolla will set you back $18,500, and a Mr. Coffee BVMC-SJX33GT-AM 12-Cup Programmable Coffee Maker with Thermal Carafe Option is available on Amazon.com for $18.26 – and in a chrome finish no less!

You may be thinking “A chocolate bar is a chocolate bar,” right? And why would anyone want to drink a beer that costs $18.33 – would it really taste 1,467% better than a Bud Light because that is the cost differential! Isn’t driving from Point A to Point B basically the same whether it’s in a Corolla or a Rolls? Why is there so much of a difference between a regular product and a premium one?

In nearly every industry there is always a product or service that commands a premium price. In this extremely competitive world in which we live, how can this be? There are a lot of wannabes when it comes to premium products, but most come up short. As entrepreneurs we want to look for the opportunity to create a premium product or service that generates huge margins and burnishes our reputation. So, what do we do?

Let’s look at the primary elements that comprise a premium product or service. Certainly, Quality is at the top of this list. The Rolls Royce Phantom Serenity is amazing in the category of quality. A Gearheads.org write-up had this to say, “The interior of the car received exceptionally crafted elements that are probably the most perfectly sculpted and crafted elements in the car world. Bloom effect and bloom motifs that are scattered throughout the cabin are applied by artists using a squirrel hairbrush. The extent of lunacy of perfection went so far that Rolls-Royce imported a specially woven silk from Suzhou in China and integrate it throughout the cabin. Bloom effect was added onto the silk as well and Rolls-Royce officially published information that painting one silk panel with bloom effect required 600 working hours. You have read that right too. Basically, a man should work fifteen weeks straight to make a perfect blossom motif on only one silk covered panel.”

Another component attributable to the premium label is that of Features. Listen to this about the Shure KSE1500 from the Shure website. “Offers five EQ presets, four customizable EQ settings, and Bypass Mode which bypasses digital processing for pure analog audio enjoyment. Features high-resolution 24/96 ADC/DAC, aligning with the Japan Audio Society High-Resolution requirements for both analog-to-digital and digital-to-analog conversion. Works with any earphones or headphones with a 3.5 mm jack; compatible with Mac, PC, iOS, and Android devices. Includes paired earphones and amplifier (not compatible with other earphones or amplifiers), charger, Lightning® and OTG cables, two 1/8″ cables, 1/4″ adapter, airline adapter, attenuator, cable clip, two security bands, cleaning cloth, case and user guide.” If I wanted a set of premium earphones, I would be impressed with such a wide array of meaningful features.

The final primary facet of a premium product (or service) revolves around Brand. Sometimes a brand can be so legendary that it overshadows the actual product. There is no doubt that Rolls Royce is exquisite in terms of quality, but the Rolls brand is so steeped in a tradition of luxury that just about any automobile it produces will be perceived as an ultra-premium vehicle.

We entrepreneurs would do well to study premium products and services and model them to the greatest extent possible in our own organizations. Too often companies charge higher prices just because it costs more to produce whatever they are selling rather than providing true value to the customer. When we give premium value to our customers, we are well on our way to achieving a level of product or service differentiation that commands a premium price.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

The Sensitive Entrepreneur

Posted on June 15, 2025 by anentrepreneurswords

We have all known hard-charging Type A entrepreneurs who have a “take no prisoners” attitude. These people are the doers. They are decisive and they know how to execute. But sometimes there is a downside to this sort of personality. Yes, sometimes those of us who are very driven may tend to be insensitive. This usually is not intentional but nonetheless it can have a detrimental effect on our team members and the culture we are trying to build.

There are many ways that insensitivity can manifest. It can be as direct as making derogatory or belittling comments to as subtle as failing to acknowledge someone with a friendly greeting in the morning. Think about an exchange like this. Team member – “I’d like to volunteer to work with Jim on the Norton project.” Entrepreneur – “No, you just need to stay focused on what you are doing.” While it may be absolutely true that the team member needs to keep doing what she’s doing, the way the entrepreneur delivered the message could be construed as insensitive. A different selection of words would make all the difference. How about this instead? “Jan – thanks for the offer. Your project is critically important, and I am counting on you to get it wrapped up. But I will take a rain check on having you help with the next one.” This statement acknowledges the team member with an expression of appreciation and affirms her value. And it gives her hope that she will be given another opportunity in the future.

So, how do we develop the appropriate level of sensitivity without going so far as to sing Kumbaya all the time? There is a very simple method that I have learned over the years. I will admit to once-upon-a-time being the insensitive Type A hard-charger that was described in the opening paragraph. I justified my behavior by believing that I was simply being expedient in my dealings with others. After all, I was moving at 100 miles an hour and the quicker I could get through with one meeting the sooner I could move on to the next. But I gradually became aware that my people skills were suffering. I was not doing anything to cultivate relationships or goodwill. Eventually I developed a new awareness by just putting myself in the other person’s shoes. How would I feel if someone spoke to me a certain way; said something in a certain manner, or failed to somehow acknowledge me?

The key is to practice, practice and constantly practice. I try to pay attention to how everyone around me feels. In a restaurant, I want to make sure that the wait staff are properly appreciated. At the office I try to make eye contact with members of our team as I walk by and greet each one of them. I pay attention to the language that I use, going the extra mile to avoid careless statements that could be misconstrued. Again, I am always testing what I say or do against the basic premise of how I would want to be treated if I were the other person. After a while it becomes very intuitive.

The mark of a good leader is how he or she treats others. Running roughshod or being humble and sensitive? The choice is easy when walking a mile in another’s shoes.

The Appreciative Entrepreneur

Posted on May 15, 2022 by anentrepreneurswords

Robin goes to work every day at the consumer products company where she has been employed for the past two years. She faithfully performs her roles and accountabilities and has received relatively high marks from her supervisor. In fact, she has never taken a sick day and is proud of the fact that she’s never missed a day of work other than scheduled holidays and vacations. But recently, Robin has begun to feel more and more like she’s on a hamster wheel. She believes her compensation is relatively fair and she likes what she does. However, she often wonders about what she might be missing at another firm.

Robin is feeling unappreciated and undervalued. No one has been disrespectful or mean to her, so that’s not the problem. More than anything no one outside of her operating unit seems to really care whether she’s part of the team or not. It’s this level of apathy that’s eating at her. She sees the “big boss” almost every day, but he’s never once spoken to her. She rationalizes this by acknowledging that there are over 1,000 employees in the company and it’s impossible for him to know everyone. Still, her accomplishments are seemingly unnoticed and taken for granted.

The scenario just described is repeated countless times every single day across a wide spectrum of companies – large and small. There are multiple studies showing that feeling valued is more important to many people than what they are paid. And this is not a problem that is easily solved with a large company event, a cruise or other significant activity. No, our team members need to feel valued on a regular and ongoing basis.

Leaders need to understand that helping others to feel appreciated and valued is one of the most important functions we can perform. It requires a genuine and authentic mindset that we are here to serve. Yes, you read that correctly. We are servant-leaders. The objective is to look for every way we can to make others feel important and fulfilled. It’s not a mindset that we can turn on and off depending upon who we encounter. We can start creating this mindset by trying to find something good and positive about every situation and everyone. When we are served in a restaurant, we can call the server by name and tell him or her what great service was provided. In public spaces there are always people cleaning the floors or polishing the glass. We can compliment them on how they are creating a sparkling appearance.

We continue to practice our appreciative mindset at our workplace. We make certain to greet everyone we walk by and call them by name. We go out of our way to acknowledge the efforts of others and thank them for their contribution. As leaders, it’s our job to encourage other leaders to create a culture of gratitude.

An initiative we launched several years ago involves sending a letter to each of our team members on their work anniversary. It’s form letter that changes annually and is signed by me as the CEO. But we’ve taken it a step further. A spreadsheet is created onto which is recorded comments about each team member’s accomplishments provided by his or her supervisor. Toward the bottom of the letter, I handwrite a personal note – several sentences – citing these individual accomplishments and thanking the team member for being a part of the team. I write several hundred of these each year and can tell you that it’s one of the high points of my month. I also call team members when I hear about exceptional performance and express my appreciation for their service.

It’s equally important for our team to feel as though their input is needed. Mandates from on high are sometimes necessary, but soliciting feedback from team members and involving them in the decision-making process whenever possible promotes buy-in. And we need to make sure when people speak that we listen and act accordingly. There are many great ideas and practical solutions that can be accessed from such a collaborative approach.

Acknowledging value and showing respect starts at the top of an organization. If the executive leadership doesn’t incorporate this as part of the cultural fabric, it’s not likely that it will be a priority for others either. If the “big boss” would simply say hello to Robin and show a little interest in her and what she does, it’s unlikely that she would feel the way she does.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

Is the Grass Really Greener?

Posted on June 23, 2019 by anentrepreneurswords

The U.S. unemployment rate is at its lowest since 1969. Companies are becoming more and more creative in their recruiting efforts. From an employee’s perspective, times have probably never been better. There’s certainly a temptation to job-hop the way up the compensation ladder in the belief that an employer is going to be much more generous than would have been the case during the Great Recession and for many years thereafter. But the question must be asked, is the grass really greener on the other side of the fence?

Everyone knows that there’s much more to a career than a paycheck. Those who blindly chase the dollars may get what they want – but there may be a whole lot more than they bargained for. I know many people who were thrilled with the amount of money they were going to make only to find out that their new boss was ridiculously difficult, the stress levels were off the charts and working conditions were abysmal. Yet, it’s very tempting to jump at the chance to make a lot more money and pick up a cool new title. So, how should we look at the “grass” on the other side of the fence?

Over the past 44 years, I’ve had numerous opportunities to make the jump. I resisted every time. Why? Long ago I realized that 1) I was working for and with honorable people; 2) I was allowed incredible freedom to be creative and experiment, and 3) I was working in an industry that I loved and had dreamt about since I was in the 8^th grade. You’ll notice that nowhere did I mention money. The reason is simple. I was allowed to continually figure out how to add value to whatever I was pursuing, and my compensation increased accordingly. This approach is my suggested template for viewing the “grass is greener” dilemma.

I’ve always believed that most people work a job. A few pursue a career. And then there are those of us who are lucky enough to live our passion. I don’t think I’ve felt at any point in time (after the first three months in the mid-1970s) that I was working a job. For awhile I was pursuing a career. But for most of my adult life I’ve been able to live my passion. This is important to understand for it’s one of the three foundational elements to answering the “grass is greener” question. Each of us must find our own passion to pursue, and the sooner the better.

Let’s assume that we generally know that we are in the right industry – yes, I know – that’s a big assumption to make. But we must start somewhere. This brings us to the other two foundational elements. Am I working for and with honorable people? There’s much more to this question than it’s literal interpretation. What is the company’s culture? Is there a vision of where the organization is heading? Are there core values that are more than slogans in a fancy frame on the wall? Are employees valued and treated fairly? Do senior leaders express gratitude? Do they seek out feedback; listen to it, and act upon it? No situation is going to be perfect. But if the environment is comfortable and efforts are constantly being made to improve, that’s a good sign that we are in the midst of honorable people.

Finally, we need to measure how likely we will be to succeed over the long haul. In my case, I was pretty much allowed to make my own way. Sure, I had specific roles and responsibilities, but I always wanted to do more and be more. I saw a myriad of opportunities and developed plans to exploit them. I made plenty of mistakes – more than I can count. But I was allowed to make them and learn valuable lessons in the process. I always figured that as long as my successes exponentially outweighed my failures, I was on solid ground. And that turned out to be true. You’ve likely heard the old adage, “the cream rises to the top.” If we are working for and with honorable people, we can always know that we earn more trust and more latitude through our performance.

Ultimately there’s no need to look at the grass on the other side of the fence so long as we can grow a lush, green lawn on our side. When we do this we’ll surely reap the benefits accordingly.

To Proposition or Not To Proposition

Posted on May 3, 2015 by anentrepreneurswords

The other day I was talking with an entrepreneur about his company. For a number of years he had achieved a reasonable level of success with the manufacture and sale of a particular product. But more recently his sales had trailed off and he was becoming worried. He made very telling statement, “the product is the same as it has been for the past 15 years – I don’t understand why people aren’t buying it in the quantities they once did.” Framed in this manner, the problem is obvious. But how often do we march on oblivious to the changes that are occurring around us?

I asked the entrepreneur to explain his value proposition, a question that was followed by silence. He admitted that he really hadn’t thought about it for quite some time (actually it had been several years). The bottom line was that his customers no longer saw the value in his product the same way as they had in the past. Tastes change. Competition is fierce. Customers can sometimes feel like they are being taken for granted. Unless we make an effort to continually understand why our customers buy our products or services, we aren’t in a position to make the tiny tweaks or major overhauls that are necessary to maintain our winning streak.

Conventional wisdom says that a value proposition is a promise of value to be delivered. Obviously there’s a lot more to it. A restaurant where we eat sometimes seems to be having a bit of a struggle with its value proposition. I suppose that the proprietor could say to me the customer, “You pay me money and I’ll cook your dinner.” Technically that’s a value proposition – but a pretty bad one. The website for this restaurant references “a special dining experience.” There are some other superlatives in the “About” section of the website, but nothing that would really grab you. There are a lot of little things about this place that demonstrate a lack of focus on a strong value proposition. The prime rib is fatty and gristly; the wait staff isn’t trained to make sure that a diner’s glass of tea or water is always full – even if it’s not their assigned table; likewise, empty plates aren’t cleared by the bus staff while guests are at the table (only by the primary server), and finally, service can be a bit slow at times.

A value proposition needs to reflect the culture of the organization. In the case of the restaurant previously mentioned, there doesn’t seem to be a culture of attention to detail. This restaurant probably gets 95% of the dining experience right, but doesn’t seem to care enough to nail that last 5%. If I owned the restaurant, I would re-tool the culture and become fastidious about the little things. My ultimate value proposition would be something like this: “Most restaurants can cook you a meal. We focus on that last 5% to make your dining experience 100% perfect.” Then I’d follow that with a further explanation – “your drink glass will never be empty; we select only the highest quality beef, pork, poultry and fish; our wait staff will always be looking for ways to serve you – regardless of whether or not it’s their assigned table.” Not only does this clearly state what value we’ll be delivering, but it also defines the points of differentiation with competing venues.

A good value proposition is clear, inspiring and differentiating. To avoid becoming irrelevant, entrepreneurs must continually review and refine their value propositions.

It’s Later Than You Think

Posted on January 12, 2014 by anentrepreneurswords

Question: I have a colleague who is habitually late for everything. This is really aggravating and is hurting our business. Why is he this way?

Answer: I once had a partner who was always late to everything. When I’d say something to him about it, he’d only laugh it off. I finally realized that he was late on purpose. Why? Because I believe that he always wanted to make a grand entrance to any meeting or appointment. I think he felt it gave him some sort of power over everyone in attendance – they had to wait to start until he arrived.

There are several reasons for lateness. The first (and worst) is exemplified by my former partner (who sadly is deceased) as described in the preceding paragraph. Another reason is a lack of organization and/or poor time management. A third reason is simply not caring that others must wait. And finally, every once in a while there may be an unavoidable occurrence that prevents us from being on time.

It’s important for us to put ourselves in the shoes of others and think about how they feel when we are late. I personally resent it when others believe their time is more valuable than mine and choose not to be on time for an appointment or meeting. This drives me to try and be early to meetings that I attend. I don’t believe there is any such thing as being fashionably late. Suppose I am on a phone call and know that I need to leave in five minutes to meet an investor for lunch. And suppose that I know that the call I’m on is going to take longer than five minutes. I will ask the other party if I can call him or her back from my cell phone and finish the conversation while I’m driving. I’ve never had anyone object to this approach and I’m always on time when I use it. For the few times I’ve actually been late, I always call ahead and let my party know exactly when I will arrive – even if I’m only going to be two or three minutes late.

Recently I made an appointment to see an oral surgeon for some dental work. I arrived 10 minutes early and was informed that the surgeon was running 75 minutes behind. No one bothered to call me in advance. I re-scheduled the appointment with assurances that I would “get right in.” Once again I arrived early and was processed by the receptionist. After 30-minutes of waiting past my appointment time I left for good and wrote the surgeon a letter. He called and apologized and then blamed his staff for poor communications. Not once did he take responsibility for overbooking. This obviously was his modus operandi which seems to be the case for many in the medical profession. I formed an unfavorable opinion about him and unfortunately (for him) have related this story many times. He’s probably a fine surgeon, but projects an air of arrogance with his tardiness.

Being late is a simple choice. We may believe that we have a legitimate excuse, but again, it begins with a choice we make. When we are early for an appointment or meeting, we send a signal that we truly value the other person. This small, uncomplicated act does wonders to build strong and positive relationships.

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