Warren Buffett, America’s most admired investor, once said that one simple rule dictates his approach to investing: “Be fearful when others are greedy, and be greedy when others are fearful.” This is the flip side of the copycat rule: Look at what others are not doing, and seize that opportunity to do it yourself. It’s kind of like how in fishing it’s sometimes best to cast your line where no one else thinks there are fish.
It’s not a question of being different just for the sake of being different. That can get you nowhere quickly. Great businesses stand out by being different from the rest in the right way: by finding customer needs that are going unmet and figuring out a way to meet them. One example of a company that has done this successfully is Chick-fil-A. When S. Truett Cathy founded Chick-fil-A, it didn’t take him long to figure out that every other fast-food chain was serving hamburgers but very few were serving chicken. That’s why today, Chick-fil-A serves chicken, chicken, and nothing but chicken. How is that a good business proposition? Think of it this way. If you have a hankering for a burger, you could go to any of a number of fast-food chains competing for your business. But if you are in the mood for chicken, you have fewer choices, and if there’s a Chick-fil-A nearby, that’s where you’re likely to go.
Doing what others don’t do has also paid off for Southwest Airlines. For instance, they are one of the few airlines that let customers change flights with no charge—a huge plus for someone who travels a lot and often has to adjust departure dates or times. If you cancel a flight, they give you full credit for up to twelve months. And unlike most other airlines, they don’t charge for checking baggage (up to two pieces). But you don’t have to be a giant corporation or a national chain to stand out by offering a service no one else does. For example, consider Mollie Stone’s Markets in the San Francisco Bay Area. Two of the local chain’s nine stores—both located in areas where hills are steep and parking is impossible—offer something called the Mollie Bus, a drop-off service that transports customers and their packages from the store to their homes. It runs regularly, according to demand, and it’s free with a purchase of $30 or more. You can imagine how welcome that is to area residents, especially those with physical limitations. It no doubt gives Mollie Stone’s a huge advantage in a highly competitive business.
When you’re out and about, every time you have a thought such as “Wouldn’t it be great if they . . .” or “If only they offered . . . ,” write it down, because you might be able to convert that idea into a unique service innovation. And while you’re checking out what your competitors are doing, ask yourself not only what you can imitate, but what you can do that’s radically different. Is there something that’s the opposite of what they do? If they’re trying to sell every product under the sun, like Target or Walmart, can you specialize in a single item? If they pride themselves on having lots of store locations, can you consolidate to a single space but offer a super-efficient delivery service? If they take three days to do something, can you do it today? If they’re open from nine to five, can you stay open from eight to six? If they charge for shipping, can you ship for free or for a dollar? If their voice mail says they’ll get back to you within twenty-four hours, can you answer the phone and take care of customers immediately? If they sell it unassembled, can you sell it fully assembled? You get the picture. The idea is to find out what customers aren’t getting from your competitors and give it to them.
In a competitive, fast-changing world, the companies that can satisfy a unique customer need will emerge the winners. If you need any more incentive, just remember the slogan that helped propel Apple from near ruin to the most profitable company in America back in 1997: “Think Different.”