In the competitive world of business, it's not always about offering the lowest price. In fact, you can outperform your competitors even when your prices are higher. The secret lies in specializing in a specific, narrowly defined target market.
I recently had a conversation with the founder of a marketing program designed for new business owners. Instead of trying to undercut the established competition with lower prices, he chose to focus on two types of businesses he had prior experience with - insurance sales and MLM marketing.
He had a deep understanding of the workings of these businesses and the people involved in them. He developed separate websites for each business type, tailoring the content to specifically appeal to prospects in those industries. While the design of the sites for insurance salespeople and MLM marketers was identical, the content was entirely different.
His strategy was a success. Sales are nearly 50% above projections, even with prices 15% higher than similar programs. He managed to thrive in a highly competitive market by becoming a specialist.
People prefer to do business with specialists who have a unique insight into their situation. They feel more confident about getting what they expect from a product or service when it's offered by someone who understands their unique needs.
Most customers are even willing to pay a little extra to buy from someone who thinks like them. It's worth it to avoid the risk of disappointment from buying from someone who doesn't understand their specific situation.
Targeting a niche market allows you to craft your sales messages with great precision. You can cater to the specifically defined interests of prospects and communicate with them in their own style. More people will buy when they feel you are speaking directly to them about their individual needs.
As a specialist, you also establish yourself as an expert in your field. Customers will naturally refer other prospects to you. They value what you did for them and are confident you can deliver the same results for others.
Becoming a specialist is easier than you might think. Here are three simple steps to achieve it:
Existing customers who match the profile of prospects in a market you've targeted can help you develop your sales approach for that market. Ask them why they chose your product or service, what they like best about it, and why they chose you over a competitor. Their feedback can provide valuable insights to help you appeal to other prospects who are similar to them.
In conclusion, you'll always have competitors. But you don't have to lower your prices to compete with them. Instead, become a specialist and cater to prospects in a narrowly defined target market. Your understanding and insight into their unique situation will establish you as the expert in your field. They'll want to do business with you, even if you don't offer the lowest price.
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