Firstly, price is never the only thing. If you think that it is, you will always be challenged to make money in your business because you are focussing on a single factor, when in fact there are many more. In fact, that you have great control over. Let’s look at how you can differentiate:
1. Understand all the factors in play with your customer. Yes, price is important and it always will be but there are other factors as well:
a. Your reputation versus your competitors – what do you always do that your competitors do not. Could be seen as a positive by your customer. Do they know that you do this? How much would this be worth to the customer if they did know.
b. Your experience – maybe you are a better problem solver than your competitor. The more complex the job, the more important that this becomes. However, for your customer, they may be purchasing your service for the first time. They may be completely unaware of the challenges faced in setting up your product or service and they may be equally unaware of the consequences of these if left unresolved.
c. Your team – not everyone has a team of people capable of doing the work. How would you rate your team? This can even include sub-contractors. If you regard them highly, then you need to be able educate your customer on the value of same.
d. Your ability to differentiate. Yes, you know why you are better, why you are different, why it should not be always on price. Wht does the customer not know? Because they may have not purchased your service before. Its up to you to educate them. How well do you do this.
2. Understand that you have a role to play in helping someone to buy your product or service:
a. What does your website say about your product or service?
b. How well does your quote stack up? Did you put enough time and energy into its preparation?
c. How well did you present your quotation to the customer?
d. How well did you follow up.
e. Would the customer have been impressed with every aspect of your preparation, right from the first email, phone conversation, right up to when the decision was made.
f. If you did lose the business, how difficult was it for the customer to take it from you?
If you speak to business owners all over the world, you will hear the following:
“I prepared a business plan which got me a loan but did not reflect how the business fared at all.”
“Most of the assumptions that I made in my business plan were wrong and the plan did not work”
“My business plan lacked any real insight into what really happens in business”
“you cant plan for my business – its too un-predictable”
“I have not got time to do a plan – I’m too busy (not making money)”
And these are the reasons why most people fail to plan. Too often, plans are too broad brush, too long terms and fail to cover the specifics of what has to be done, today, tomorrow, next week and the week after.
If you would like to get down to the nitty gritty, to identify the top 10 things that you must do in your business in the next 3 months, then you need to attend GrowthCLUB.
We had the pleasure meeting with Ron and Alan from Book Buzz on Friday in Dublin – they shared their concept of new innovative thinking for businesses. Really good stuff. I look forward to applying it with my own clients..
Here is a clip of the lads on Newstalk…
Reminder as well about GrowthCLUB on Friday July 1st at the Harbour Hotel in Galway…