Every business school student hears the old adage: Do one thing well and “stick to your knitting.” But what does that mean in practice? Tervis Tumbler, the leader in the insulated drink ware market, is a great example of doing one thing best. Tervis CEO Laura Spencer explains how Tervis has succeeded, going back way back to the 1950s, based on a single-minded focus on dominating one area.  

First, in case you don’t know Tervis, for 60 years they have been making tumblers, those clear, sturdy drinking glasses. Last year they did around $34 million in sales with 210 employees, and they expect sales to grow this year. Their products are so well-made that Tervis guarantees them for life. They are made in the USA, feature double insulation, are microwave/freezer/dishwasher safe, are as clear as glass, and come in designs for any taste (from flower patterns to NFL, MLB, and college team logos).

CEO Spencer explains, “We are successful because we have stuck to our core. We focus on insulated drink ware, and we keep improving while staying on that path.” 

The company veered from that core only once, “in a minor way” according to Spencer. Almost a decade ago, they introduced "Island Canvas Gear," a line of LL Bean-type tote bags. The company thought that this product would go along well with tumblers, and the line was profitable. 

However, Spencer explains that “It was profitable, but for the amount of resources we put into it – such as ordering an entirely different set of materials – we realized that it was not where we wanted to focus. They were a distraction. Even if you are making money on something, it still takes resources away from something else.” 

The company continues to lead the market because it stays close to customers and on top of trends and get new ideas. The members of the sales & marketing team talk with customers by phone and at trade shows to learn about emerging needs and to review new ideas. Then, after working with artists to design new products, Tervis tests ideas in their four Florida factory stores and on their website to quickly see what works. They also work with certain customers to design and manufacture exclusive products. 

Because Tervis is the leader in a focused niche, they get some big advantages over the competition. For instance, they are able to build relationships with prime licensors like Major League Baseball, the NFL, and college sports. There are three reasons why. First, many of these organizations are reducing the overall number of licensors they have, and so they want unique products like tumblers. Second, major licensors absolutely insist on the highest quality product, and Tervis leads the field. Third, licensors want to work with companies that perform and do what they say they will do; Tervis has 6 decades of experience delivering a virtually indestructible product. That’s the power of focus! 

The final piece of advice that Spencer offers for companies who are willing to focus single-mindedly on dominating a niche is to take time for strategic planning. “We go off-site to make sure we continue to stay focused and don’t lose the forest for the trees. Then we can come back and execute on a daily basis.” 

When you examine Tervis Tumbler, you discover a company that is 100% organized and intensely focused on doing one thing better than anyone else. This fanatical focus gives the company an edge that gets them deals with major licensors, and earns ongoing loyalty from retailers and consumers. 

How about your company? Can you say that you have a product or service that dominates your marketplace, and that your focus is on constantly improving while remaining committed to what you do best? Would you eliminate a profitable line because it distracts you from your core focus? Do you have the staying power to focus on excellence in your area for more than 6 decades? For most companies, the anwer is no.