How does Yeti charge 10x more for a simple cooler?

How do you sell your product for 10x more than your competitors!?

While making marketing simple and easy.

All to hit your business goals in a quicker amount of time?

Well, the answer is in the story of Yeti. Yeah, the billion-dollar cooler company.

If you are just starting out in your entrepreneur and marketing journey or you are a seasoned marketer.

There is something to be learned and reminded of within Yeti's story.

Quick Backstory:

Yeti started in 2006 by two brothers who were avid outdoorsmen.

They initially were experiencing problems with the existing coolers on the market.

All the coolers on the market were cheaply designed.

They kept items cool for a short time and often broke after some basic usage.

Taking matters into their own hands, they designed their own heavy-duty cooler.

Pricing it 10x higher than your standard cooler.

The Marketing Strategy

So who the hell is going to buy a $300 cooler!?

Some of you may already have one. But why? Why buy something that expensive?

Well, here’s the marketing strategy they used to get people to pay $300 for a cooler:

1) Build a premium product.

2) Don't sell to the masses.

Every single cooler on the market was advertising to the average Joe. The backyard barbecue beer drinker and family.

If your game plan is to sell to the masses right out of the gate, you are entering a world of competition.

Causing you to lower your prices while struggling to maintain quality.

The mass market just wants something that will work okay for as cheap as possible.

Yeti took a different approach...

Niche down, but why?

You hear it all the time.

"Niche down"

"Niche down"

"Niche down"

"Niche down"

Well, at least I hear it all the time.

It's valuable advice, but there's more to it than just "niching down."

There are situations where you need to niche down and situations where you don't.

Yeti understood if they created the most premium product for a singular group.

Then, that group would have no choice but to purchase their product. No matter the price.

So they initially had pro-hunter-man and fishermen test the product and become brand ambassadors.

Focusing on this niche allowed them to accomplish 2 things.

1. Penetrate a small & loyal community to start building a brand

2. Building a product for the pros made them be seen as an aspirational product to the average Joe.

   • Like how most people want Loui Vuitton because it's associated with Rich and Famous people.

One big takeaway is that when you niche down, you must niche down into a community with money to pay for your premium product.

You wouldn't think that people who fish & hunt have the highest income. On the outside both seem to be a cheap sport to get into.

But If you look into it, both those sports can become expensive quick.

People serious about hunting and fishing usually spend a lot of money on gear and even a nice boat.

So, having a $300 cooler that would never break and always keep your items cold was a no-brainer buy.

From Niche to Mass Market

As any great business does, they keep on scaling.

Eventually, you have to step outside of your community.

It worked out perfectly for Yeti. Since they built a solid brand with a solid reputation in the community. It was easy for them to get into big retail stores.

The average middle-class to upper-middle-class dad had no problem spending big money on an excellent cooler.

In a way, Yeti has become a status symbol for the average dad. It’s like flexing a rolex.

People know it's expensive.

But it is also just a great cooler. Which is a big reason why Yeti is a billion-dollar company.

Key Takeaways

• Niche down into a community

• Make sure the community has money

• Build a premium product for that community

• Build a solid reputation and brand

• Start to scale outside of the community

That’s it! hope you enjoyed the story and the insights provided along with it.

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