Many small business owners end up competing on price. Customers and clients want the best value for their money. If there is little to choose between you and your competitors, price is the only way to distinguish who offers it. You end up having small profit margins. You can’t raise your price for fear of losing too much business to your competition. You can’t lower your price because they’ll do the same. Even if they don’t follow you, your margins are so slim you’ll end up losing money.
To avoid this you have to be perceived as better than the others. There are 4 steps to doing this:-
- Be clear as to who your ideal client is, what motivates them to buy. 70% of the time it’s an issue problem or concern they are looking to solve. 30% of the time it’s to gain some sort of pleasure. The more clear you are about your ideal customer’s “demographic” and “psychographic” the better.
- Innovate your business to solve their major “hot button” issue. Be seen as the expert or specialist in this niche. It’s a fundamental part of human nature to want to deal with an expert or specialist.
- Follow the “Conversion equation” to get your message out to your ideal prospects that you offer better value than the rest. a) Interrupt with a headline which addresses their hot button. b) Engage with a sub-headline which promises a solution. c) Educate by explaining fully and specifically exactly how your solution works and who’s used it. Prove it will work for your prospects. Give loads of evidence. d) Make a low or no risk offer, normally of information so you can nurture the prospect along their “buyer’s journey”. For most professional service prospects, only 1% to 3% are typically ready to buy now. The rest split into never buyers, (30%), and future buyers, (67%).
- Nurture these ideal prospects by supplying regular pieces of information in a DRIP campaign. Don’t try to sell until they are ready to buy or you’ll scare them off.
- Your language throughout should have short words, short sentences, short but varied paragraphs. Break up your page with indents, and formatting. Use sensual language which appeals to taste, sight, feel, hearing, smell. Use “long copy” but with a concise style. Give benefits that sell to emotion. However, explain features so they can justify their purchase to themselves and others.
You can summarise this as have something good to say, say it to the right people, say it well, say it often. Follow these 5 steps and customers will start to use you rather than your competitors. You reach a “tipping point” where the trickle becomes a flood. You’ll be able to raise your prices and eventually dominate your market.