It’s easy as 1,2,3…
1. Find a product or a service that you can buy or deliver cheap.
2. Add value.
3. Sell your (value added) product for lots of money.
Easy right?
Let’s break it down.
Take away their pain:
If you can solve your customer’s problems and/or take away their burdens, they will throw money at you.
Here are some questions you’ll need to answer:
-How badly does your customer need your product or service?
-Can someone else deliver the same product or service cheaper?
-Can the delivery of your product or service be automated?
-How many people need my product or service?
What makes you so special?
Now that you’ve determined your product or service and potential market, it’s time to figure out how to set yourself apart from the competition. What makes a customer want to give their money to you versus your competition?
“I offer excellent customer service.”
“I care about my clients”
or
“Our real estate knowledge and expertise are completely dedicated to you. “
Not only does your competition offer the same value, they’ll do it cheaper then you. Now you’re stuck competing on price instead of value. You’ve just become a commodity.
Let’s start again. What makes you unique? What can you offer to your customer that can’t be easily duplicated or automated?
You are not a commodity
How will you compete?
Do you offer an iconic Product or Service like Coke or Levi’s?
Or serve a specific Marketlike CNN or Travelocity?
Do you have Technological Capabilities that determine your product or service like Twitter or Facebook?
Have you created or implemented a unique Production Process like Ford or Boeing?
Is your Company using a unique or proprietary Sales or Distribution Model like QVC or Avon?
Do you rely on finding, acquiring, extracting and renewing Natural Resources for your products like DeBeers or Exxon/Mobile?
Is your Company focused on getting to a certain Size or Profit level by a specific date like Goldman Saks or Subway?
Figure out what actions, decisions and behaviors keep you at the top of your competitive niche, and then start doing them better then anyone else.
Once you lose your competitive advantage and have to compete on price…you’ve lost.
Where is your niche?
