Works in digital marketing and advertising w/16 years experience. Web design and how to sell on-line consulting for top results.
The secret sauce for growing a business - the HOOK!
This is an all too common scenario, that is repeated thousands of times every year. A person goes into business...and loves their product while assuming everyone will love it too. It's the perfect business start up, dreams of building the business and enjoying the fruits of their labor, they jump right in because...they have the best product ever!
One thing in business is always true - satisfying a need to the consumer, provided that the product is priced to sell. Most entrepreneurs and small business people do their homework, consider the risk, and have that desire to build their own destiny filled with a great financial reward for their effort.
Everyone thinks this way, why work your tail off if the end game doesn't provide exceptional success and financial rewards? They do a market evaluation, have working capital to get the start up funded, and then dream of the day when that yacht, Mercedes, and the summer home is being enjoyed. It sounds like the ideal lifestyle, including the enjoyment of being a success in business...but - a 98% failure rate leaves most of these dreams never to be realized, it's a business fact!
The question remains - why? The answer is actually an easy one to explain, just not the one anyone understands because it is the last thing to think about as the energy going into the business isn't shared by the consumer...yet! The one ingredient that separates success vs. failure is how to bring the product to the market. By ignoring one of the most important elements to growing a profitable business, most will end up with slow growth and frustration, but you don't have to!
Granted, there have been a lot of business entities that have done well without doing a lot of advertising and marketing, but the odds are not in your favor. Why is marketing often ignored? It is because it has a cost and effort tied into it. A cost to advertise has a negative feel to it, because the question is - why do I have to spend money when I can place a free advertisement somewhere? The answer is - how do you rank in that placement?
Take a look at the free ads and really look at this simple question - what is the benefits of the product? People are looking to spend money on something that solves a problem for them, so you first have to define - what does my product solve! Most advertising is in the branding, yet we don't know what you really solve, therefore people click away and look for something else...so the secret is to capture that prospect. How? By getting their attention!
Lets look at some examples, I think you will get the point. These references will work in ANY business, whether it is a product or a service...you just have to think before it will work out for your. Established or start-up, you have to think differently and make an offer that is unique. Unique is what makes your product different from all the absolutely same and identical products in the marketplace, so take heed of wanting to grow your business and have fun doing it!
A friend of mine purchased from China, a product that men mostly use, and that is a compact wallet for holding credit cards, paper money, and the drivers license. He purchased these cheap with a quantity order of 2,000 in three different colors. The cost compared to the price he paid was considered an easy profit of 50% of each one sold. This is going to be easy he thought, I can price the product to sell because "everyone will want this!" he exclaimed.
Using his Ebay account, he listed his wallet and was ready to take orders. However, three weeks later he had only sold three of these, although he had a competitive price on a "quality" wallet. A month later, he had only sold a few wallets, and was ready to give it all up. He tried what he knew - discount the product to his cost, then this will work.
The story is easy to understand and happens to most people starting a business. The competition for these wallets is FIERCE, with the exception of a few variations, they are all identical. There aren't any easy answers to the question here, so how do you turn this around and provide some kind of profit in a business that has so many similar products, you are lost in the market and it is by chance someone orders from you?
This is where the secret sauce is, it takes a little thought but anyone can do it, and you can change this situation around for success, especially in the on-line ordering world we live in. The first order of business is - what makes your wallet unique? In other words, lets figure out what the benefits of buying from you is, which often requires a great offer that eliminates what your competition is willing to do.
In this example, lets say you make this offer - shipping is always the same day the order is received AND a 30 day no questions asked full refund and they can keep the wallet! This is on a product that can be purchased for less than $10.00! Think you will get more orders? Answer - yes! Do you think you will lose money on the offer? There will be a few that will request the refund, it's a part of cheapskates spending their day trying to get something for free, but a huge majority will not request the refund if the product is anything that has value for the money.
The secret sauce is - you have made the purchase a no-risk to the buyer type of transaction. What you are telling the consumer is that you have a good quality product and that they should and probably will order it from you...AND they probably will.
What about a service product, how does this work? The one thing you need to do, is discover the pain point as it relates to the consumer. Sometimes it is as simple as thinking - what would I like if I were buying this service? An example of this would be a carpet cleaning service...what could you do to provide exceptional value that would get them to do business with you?
Approaching this in a typical fashion, it is all about discounting the price to be competitive, and still not getting much business. So why not offer more, especially with the convenient component that the buyer would really enjoy? By simply offering - Free furniture removal on all carpet cleaning! Perhaps you offer a free 90 day return to clean up any stains that occur on that same carpet you are cleaning. A good business plan? You make the call, but often someone needing your product or service needs for you to differentiate yourself form everyone else AND remove the risk of your quality and expertise. If you are providing exceptional service and expertise, bid the job accordingly and you will find people are happy with your service, they will become repeat customers, and you now own a customer referral list that will make your head spin.
Two business rules that never fail, and will provide you unequaled success. The first rule is - don't provide a one and done approach to business, provide a service that the customer will want to do business with you long term. The second rule - people always buy from people they trust. These are called QUALITY customers, and you want them - they are willing to pay more just to do business with you, never forget that!
© 2021 Mike Dempsey