One of the biggest mistakes most new business owners make is trying to target everyone. More doesn’t always mean your revenue will increase. Why? If you’re talking to one million people and they’re the wrong people you’re not going to get results. And that my friend is the biggest problem we have in business. We tend to get too romantic about our ideas and fail to look at what tells us if it’s working. How do I know what works? Bottom line is it’s making you money. In business what works grows your revenue and that’s the bottom line.
Your product, price point and the way you communicate are not for everyone. You have to know this right off the back. So if you’re selling a $20 bar of soap, why would you target people who buy their soap at the dollar store? You see what I mean? Those who buy their soap at the dollar store will not see the value in your product. However, what if you targeted someone who buys their soap at Neiman Marcus? They’re used to buying soap that cost more than $1 per bar. In fact, they’re used to buying one bar of soap starting at $11 per bar and some as much as $120 per bar. (See this link https://goo.gl/i9fih8).
Do you see how targeting the right people can increase your rate of success? This means that from now on your opinion and the way you buy has to go out the door if you want to sell high-end products. You will have to start thinking like the person who shops at the price point you’re selling. If you’re not willing to part with your own judgments as to what something is worth then with all honesty you need to reconsider the price point, your product, and your business model.
It is your customer who determines the value of your product and how much they want to pay. I think we can agree that if a person came up to you and said “You’re selling this for too little. Instead of giving you the asking price of $5 I’m going to pay you $500 because that’s what I think this is worth.” you wouldn’t turn that person down. It would be foolish to do so. Yet we do this all the time. We try to talk out the consumer from paying what our product is truly worth because we don’t see the value in it ourselves.
Now that you got the info, what will you do with it?
Here are the action steps:
- Research to find out who your target audience is and where they spend their money.
- See what they’re paying currently for products similar to yours
- See what the reviews are. This will reveal to you what clients value about the product.
- Identify the limiting beliefs that have you devaluing your product.
- Make the changes and start marketing.