Who do you want to serve? That’s your ideal customer or your target market.
Is your pricing helping or hindering your ability to reach your target market? Your value proposition must befit the market you’re trying to conquer.
Every week I work on other peoples’ businesses. I regularly encounter both problems. Small business owners who haven’t properly defined their ideal customer struggle to find any market. Businesses sometimes fail to present the correct value proposition to reach their target market. That is, they price their offers too low and aren’t taken seriously, or they price their offers too high and are unable to justify it.
Small business owners desperate for revenue often choose to do business with anybody who will say, “Yes.” It can tear their business apart as they soon find out that they’re now tethered to a bad customer who drains their time, money and resources in the never ending quest to simply satisfy a customer not likely to ever be satisfied. “I wish I had never done business with this customer,” is a common refrain I hear.
Sometimes – in fact, more often than not – I find small businesses who under price their services. Again, desperate for revenue they think by lowering their price they’re giving the prospect a compelling reason to say, “Yes.” Instead, they’re diminishing their opportunities to serve their target market.
Every small business owner should find some quiet time to more seriously consider their target market and how their pricing strategy can be adapted to help them more effectively reach that market.
Thanks for watching.