When starting your business, you need to choose a niche market and come up with a unique product strategy. Find out why this is essential to your business’ success below.
Selecting A Niche Market And Product Strategy
The names get called out, excited people jump out of their seats and clamber down the stairway; each time with that familiar voice screaming, “Come on down! You’re the next contestant on The Price Is Right!” Anybody who has been home sick from school, work or just had a day off within the last 25 years knows what I’m talking about.
It’s too bad, though, that a lot of business people and entrepreneurs don’t realize the power of pricing within their business success strategies. Their impulse is to sell more of something at a cheaper price under the pretense that people want cheaper products, yes?
True enough, but let’s take institutional brands like Walmart or Home Depot. Who sells cheaper than them, and who competes? In our march to millions, we want to dream big but not start out swimming upstream against whales. Home Depot can lose money for years in a row but its owners will barely feel it. Most business people aren’t in that enviable position. If that were you in your business, you’d be feeling those losses alright.
Creating a Business Plan
— Innovate UK (@innovateuk) July 6, 2017
As a growing business or start-up, you want to play where the big kids aren’t playing. It’s essential that you select a niche market with specialty products and/or services that certain people are willing to pay more for—certain qualities and customizations that you multiply but others aren’t doing. No matter what the economy, there are people out there who care about certain things and are willing to pay more for them because it matters to them.
Rich business people understand the true meaning of the Price is Right: they offer higher ticket items! Poor business people tend to offer low ticket items. People always think that if the item is cheap enough, they’ll sell millions.
Don’t get me wrong. Selling $20 dollar items to one person at a time would make sense if that one person is buying 10,000 units from you. I’m not saying everything you sell has to be at a higher price. Sometimes it’s a good idea to have a lower price on some entry-level products and then offer the higher priced products once your customers know and trust you.
Understanding Your Money Blueprint
Rich people who have the money just want the item! And that’s why it helps to understand a little bit about the money blueprint behind the dynamics of selling fewer products for a higher cost versus more products for less money.
Most business people do not offer higher ticket items because their own self-worth is low. Their price isn’t right with the intention of getting rich. Sell for a higher price, and then increase the value to get rich. It is always a good idea to deal with high volume buyers rather than one-on-ones selling cheaper products. Don’t bother with that.
Exercise: Ask Yourself This
- What is your business’ niche market?
- What are some higher ticket products or services that other people in your industry might be offering that you might be able to add to your business?
- How can you make your products special?
Take this opportunity to share some of your insights on niche markets and product pricing. Are you struggling with volume or finding customers willing to buy a lot of your product? Have you had better luck selling less for more versus more and cheaper? The Million Mind community is that forum for like-minded visionaries to bounce ideas and suggestions.