It's hard to think of a product that is considered to be more of a commodity than milk. There are no national brands, the only advertising one sees for it is by industry cooperatives, and local brands are pretty much interchangeable. Why is it that I drove 7 miles last night to a dairy in Montebello to buy some milk at a price higher than what I can find locally? Counting all grocery stores, gas stations, liquor store, and convenience stores, I probably passed anywhere between 50 and 75 places that sell milk on my way there. So why drive that far to pay more for a product that is the same as what I can buy from a convenience store that's a short walk from my home?

Simple- Broguiere's Dairy, a family owned business since the 1920s has succeeded in creating a brand name for a product that every competitor sells as a commodity. How? By selling their milk in a glass bottle. Is milk from a glass bottle any different? I don't know for sure- but as a consumer, there is something satisfying about buying milk in packaging similar to what my grandfather experienced. The bottle does seem to be colder than the plastic containers one finds at the grocery store. And their bottles have even gone on to become collectors items, with special limited edition ones being swapped on eBay. Their glass bottles have led to distribution for their milk in high end grocery stores such as Bristol Farms. Another advantage is that now that consumers have their bottles, many bring them back to the dairy- and when a customer returns, they are in a perfect position to gain repeat business.

Do you ever feel as if your business is falling into the commodity trap? How can you find some ways to differentiate your business from competitors so as to justify a higher price, and higher profitability? Read this article on how innovation can help.

-Matt Walker, SBA Network Sales Technology Specialist