The business field is saturated. I realized this when I graduated from my master’s degree and wanted to work in the corporate marketing field.
There are X amount of jobs and a bajillion of us vying for them. In fact, it’s not uncommon for a recruiter to receive hundreds of applications for just one position.
And with that competition in the workplace, being an entrepreneur can become a similar situation. We’re all vying for a customer’s purchase.
But, if we price too low, we can’t make a living and bust our butts to make our clients happy for pennies.
If we price too high, we also can’t make a living due to lack of customers.
And if we price alongside our competitors, we are constantly at a neck-and-neck battle to win clients.
None of these are fun options.
So how do you “win” at entrepreneurship?
The formula isn’t easy to figure out, but one of the most common problems entrepreneurs have when they sell a luxury product, like higher-priced products and services, is actually selling it.
First, entrepreneurs need to understand their market. Second, they need to know how to reach their market. Finally, they need to hit the pain points of that individual in their target audience.
Recently, I spoke with a military community entrepreneur who was selling a several thousand-dollar home product that helped preserve the environment. However, they struggled to sell the product due to a high price point.
When I asked the owner why, they stated that the product saved the customer money over time, as well as the environment, but they couldn’t convince individuals to invest.
When I took a look at their website, I immediately saw why. While the product landing page focused heavily on the environment (which is a great pain point), the landing page failed to address the “right-now” pain point of the customer – saving money.
As a result, the high price of the product, mixed with the lack of value explained on the landing page, resulted in a “tough sale.”
This is common with businesses. Are you addressing the right-now pain point of your customer? Is it saving money? Time? Resources? Are you explaining the value or are you just explaining what the product is?
This is why I don’t believe in cold pitching a product or being sale-sy (not to mention it’s annoying). The whole, “I’ve got this awesome product you should try and it’s ONLY $30” only gets you so far (or for me, if I’ve never heard of you before, deleted from my messages).
You’ve read my other articles on relationship building and storytelling when it comes to making a sale. The purchase of a product comes from an emotional connection to the salesperson, the product, or the value it brings (ding, ding, ding!).
Take a look at your landing page or your elevator pitch. Are you really explaining the value your product brings to your client? Are you making that pitch to the right target audience?
No matter what your product or service is priced at, if you have a good product that actually serves your customer, explaining the value of it will always sell faster than a cold pitch with the price.
In fact, a higher-priced product or service tends to indicate that the product or service is “good” or “better” than the cheaper version. You’re selling quality here – so show that value!
Want to gain access to my free guide to social media for the military community entrepreneur? Check it out here.
Jenny Hale is a marketing and social media consultant, coach, and teacher for military spouse and veteran business owners. Nicknamed “The Military Social Media Guru,” she uses her background working with military non-profits, corporate companies, the Army, and as an entrepreneur to help others struggling to meet their business dreams. With the goal of bridging the gap between the military community’s marketing efforts to civilians and vice versa, Jenny works to make an entrepreneur’s vision come to life. You can follow her on Twitter, LinkedIn, and Facebook.