The “moat” most operators skip

There's a marketing framework I like called "the moat."

Many people know a moat as a deep trench surrounding a castle used as a physical line of defense.

Intruders would have to go:

  • Over the river

  • Through the woods

  • To grandmothers house the castle they go

  • Then after a grueling journey, overcome the moat

Years later, Warren Buffet used the term "moat" to describe a company's ability to maintain a competitive advantage.

If a company had a good moat, they could fend off any new competitor and hold brand loyalty.

If one had no moat? They're pinching pennies jumping from trend to trend.

Rental operators can build moats too. That's what I want to share today.

The obvious first moat

The best way rental operators can begin building a moat is by:

  • Having better content than anyone else in the area

  • Showing it to everyone

Few rental operators do this. That's why it's the obvious first choice.

This is done by:

  • Capturing quality content of people enjoying your stay

  • Turning them into videos

  • Using Meta Ads to show everyone who cares

Future guests will:

  • Follow you

  • Browse your website

  • Tell their friends

  • And overtime you'll become locally famous on the internet

Any competitor would have to beat you in a popularity contest (your moat).

If your stay isn't in a huge market, you could build this obvious moat and be fine.

For our friends in bigger markets, you may need some stronger defense from a bigger moat.

Building a bigger moat

I've been paying attention to Bolt Farm Treehouse recently and I noticed a shift.

Last year, it seemed like they were trying to be a mountain top couples getaway.

Now, it seems like they've build almost summer camp for couples with:

  • Spa days

  • Events

  • Workshops

  • Virtual workshops

  • And more

They went from "couples getaway" to "THEE couples getaway" by offering elements found nowhere else.

That's a darn good competitive advantage (moat).

I've had a similar idea for wellness retreats. If this is you, pay attention.

What if your marketing started off by doing virtual:

  • Yoga Classes

  • Meditation Sessions

  • Workout Classes

Similar to Peloton.

From there, you offer in-person wellness retreats at your stay every quarter.

Now you've:

  • Made your brand desirable to the people who care the most (wellness folk)

  • Positioned yourself as THEE local wellness retreat. Found nowhere else

That's a darn good competitive advantage too (moat).

What I'm Saying

Every healthy business has a way to protect them against competitors.

You can build a moat around:

  • A niche guest

  • A deeper experience

  • Events

  • Workshops

  • Community

  • Reputation

All good ideas.

But the first moat is always strong marketing. If no one knows you exist, none of the other stuff matters.

Then, once people know you exist, you can get creative.

  • Start with the obvious moat

  • Get locally famous on the internet

  • Then make it harder and harder for anyone else to catch you

Anyway, that was my shower thought.

I'll see you Thursday,

-Scott

Minneapolis, MN | Friday, July 3rd | 3:23pm