You know the term “selling ice to an Eskimo?” I think it could be an important lesson in the value of a tight marketing plan paired with a complementary pricing strategy. But let’s sell snow to the affluent instead.

The other day I saw the most beautiful scene outside my window. Large puffy white flakes of snow fell gently down. What a blessing! In the colder parts of the world snow is supplied in varied amounts completely independent of demand. As the winter drags on and the snow accumulates, budding entrepreneurs may be wishing for a way to get rid of the white stuff, and make a buck or two in the process.
 

The Product
What form will this new product take? Snow in its native form would be difficult to transport to markets where there is demand without significant refrigeration and packaging. As such it would need a higher price tag just to cover costs. Perhaps it could be marketed as the basis for a new natural snow beverage: maybe an icy complement to premium Canadian vodka, the target market being the wealthy in countries without snow.
 

The Cost
Having a clear sense of the cost of providing the product to customers is important to not losing one’s shirt. What costs should be considered? The broad categories would include:

  • Harvesting
  • Storage
  • Packaging
  • Transportation
  • Shrinkage
  • Exchange rate risk
  • Insurance
  • Marketing

Marketing
Our market research shows that no one else is offering this product. The closest comparator is blended ice, which bears no novelty factor. The product is easily replicable, so building brand recognition and reputation quickly are key. It is recommended that the product be tightly marketed to the highest margin buyers possible, including high-end bars in the world’s top hotels, showcasing it as a taste of the Canadian north.

Pricing
Product pricing should match the marketing strategy. Imagine sitting in a 7 star hotel in Dubai, 50 degrees Celsius outside and sipping the Canadian Arctic? It is the fresh, all natural Canadian snow that makes the drink, and with careful communication of this the marketing of 2 oz servings of the snow in spectacular packaging that makes a $1000-$1500 exclusive drink could net the snow vendor significant compensation.

While the snow accumulates to the degree that there is no place left to put it, Canadians may feel incented to sell their snow to those without. This exercise demonstrates that with a little imagination and a solid marketing plan and pricing strategy, even a public good like snow can be turned into a premium product.