Everyone has a reason for spending their money. Even rich people who sometimes give money away, have a reason for doing so. No one parts with their money without an expectation. When that expectation is met or exceeded, they are more than willing to spend again or make a referral.
Much of this will seem like common sense, but it is so easy to forget. Many companies in our competitive marketplace are focused on pricing. They want to meet or beat the competition with their prices. Price is only one fourth of marketing. You also have to consider promotion, place (where you meet the customer), and the product (goods and services received). Let’s talk about all four aspects.
Price. Best marketing practices actually suggest charging the highest possible price, not the lowest. What is really the purpose of going through all the trouble of producing a valuable service, if you do not make as much as you possibly can? Of course, lowering the price may increase the quantity sold, but eventually, lowering the price will no longer increase the amount sold. In all actuality, it would decrease the amount earned. Find the balance where you are able to charge the highest price, and comfortably meet the demand.
Promotion. How do you get the word out? How are customers finding you? You should absolutely focus 10 to 25 percent of your resources to promotion. Take advantage of the internet, by far the most inexpensive way to reach tons of people with your message. Join industry groups and trade shows, and talk about yourself. Tell people why and how you provide value to them. Obviously, make sure it is in good taste, and use an attractive presentation.
Place. Place may actually be more important than price. Have you noticed that gas prices are different in different locations? Some products and services are more important, and more expensive, depending on where you are. This is definitely something you should consider when determining what product and service you want to offer, and what price you want to charge. And do not forget, the internet has opened the door for small to large businesses alike to meet customers where they live.
Product. Hands down, the most important aspect of your business. This includes the product and all related services. This is where personal customer service can go the extra mile. This is what our customers actually pay for. Your product, your insight, the experience of purchasing from you. It all adds up to something they will remember. What they remember must be an awesome event where they got what they expected plus a whole lot more. Be creative. Offer free gifts, send thank-you cards, do more… You will not regret it.
Keep these in mind while running your business. Pretty soon you will have customers coming in from all over because of referrals from your satisfied customers. If you meet and exceed a need, solve a problem, or are just friendlier than the competition, people will hear about it, and will choose to spend their money with you.
Business is personal!