My customers are always demanding lower prices. Sound familiar? I hear it a lot from small business owners. Especially now as things begin to rebound. But before you start looking for new ways to attract more quality customers – or worse, cut your prices, go back to the basics. Think value and profit.
As a business owner, your products and services must accomplish two things. First, they must provide value so people want to buy them. Second, they must produce enough sales and profit to provide you with the income you want and need to stay in business.
Create Value and Profit
The past year has brought about a lot of changes. So as you re-open the doors, take a few minutes to review your products and services. When doing so, consider both customer value and business profit. Remember, you want and need both. Here are a few things to think about.
- What products or services do I (or should I) offer? Which are profitable, which are low-margin?
- Who are the ideal customers for my profitable products or services? Are they different than those who are buying my marginal products?
- How can I repackage my products or services to better meet the needs of my ideal customers today?
- What benefits, solutions or payoffs do my ideal customers receive from my products or services?
- What makes us unique and how can we capitalize on it?
The key to creating a balance between the value that customers want and profit you need starts with understanding your products and services as it relates to the benefits your target customers want – then packaging them in a way that is compelling to customers and profitable for you.
Related Article: How to Diversify Products to Maximize Sales and Profit
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