Thank goodness my daughter has outgrown American Girl dolls. Otherwise, I would be looking at a second mortgage on the house.
For those of you who have never experienced the the investment and I use that term on purpose, getting your first doll can be a shocking experience.
The darn dolls start at $130. You can get a doll at Wal-Mart for 9 or 10 bucks. And you will have yourself a perfectly functioning doll.
But it is not the doll that generates their revenue, but the accessories and outfits. And there is no shortage of these:
- The "Student Council Election" outfit, with clipboard is $34. Of course you will need the "Student Council Election" set including bull horn, table and voting box $50.
- Want your doll to stargaze? The generic outfit will not do. They have a stargazing tent $38, sleeping bag $15 and pajamas $24.
- Of course every American Girl doll needs to be seen riding in a Volkswagen Surf Bus $650. (I admit, reluctantly to having the bus... moment of weakness...)
That is just the merchandise...
Here is where the big bucks, the fat cash, the gravy, the really big profits come in...
Experiences
They create experiences for the dolls and their owners (and owners parents) at their stores and online. The AVERAGE amount of time a girl will spend in the store on one visit is 4 hours.
- Want a professional picture of you and your doll?: There is the photo studio. $20
- Before the picture, you and your doll can go to the hair studio $20
- Dine at the girl friendly cafe $17-$26 for prix fixe
- Don't know where to start? Hire their concierge aka professional shoppers to help drain your wallet.
And it doesn't stop there...
No more Chuckie Cheeses pizza parties... Nope
- Celebrate your birthday at the stores private room: $32 per person or $50-$60 for the deluxe package.
- How about a sleep over in the store with your doll? That starts at $240 per person.
You could easily spend over a thousand bucks in the store and not leave with one single solitary physical thing!
What does this expensive doll and store have to do with your business?
Everything, of course.
If you can get your clients to spend that amount of time and money with you (or a comparable amount for your industry) on experiences, your profitability will be through the roof!
And those experiences, well executed, creates further demand and spending for more experiences.
It is self-perpetuating.
You have your base widget, in this case a doll. Maybe you are a Physical Therapist? Your base widget would be one therapy session.
Your add-on sales could be lotions, branded clothing, exercise equipment.
But what about the experience?
- Valet parking?
- Espresso in the lobby?
- On time appointments?
- How about field trips?
- Monthly catered lunches (lunch club?)
- All-inclusive trip to Machu Picchu, Peru to see the ancient therapies performed by Peruvians for centuries that are still in use today
What strategies can you adapt in your business?
Are you a one and done Wal-Mart kinda doll or a lifetime really rich American Girl doll?
