Basics
- Determine the exit strategy.
- Why did you get into this business?
- Give them a back story of your product.
- What is the story behind each product?
- What problem are you trying to solve with your product?
How to price your product/Value offering
Ask yourself
- Why should they buy?
- Why should they buy from me?
- Value — What value are you bringing to the customer?
- Language — Speak the language of your customers. Create offers in their words.
- Give them a reason — Why are you doing this?
- Value stacking — Give them real value. Your offer should seem like a no-brainer.
- Give them outrageous guarantees like if you don’t like it 100% money back.
- Position your products for higher margins.
- Usually, business owners set prices based on what their competitors charge.
- One of the common applications is to charge price slightly lower than the market leader.
- Another common way is to take the cost price and add what feels like an acceptable markup.
- Offering too many choices can prevent sales. (paradox of choices)
- Offer two to three variations — Regular, Standard and Premium.
- Premium should be priced at least 50% more than standard and should offer double the value of Standard.
- Invite them to try before buy.
- Create one ultra-high ticket item. This would attract customers who shop based on prestige, affluence, and convenience. Other products would look reasonable in comparison to this one. (Contrasting principle)
- Sell them subscriptions.
- Sell them bundles and packages.
- Offer referral bonuses.
Product Description
Use triggers that invoke an emotional response in your customers. Use words like — Love, free, save, you, savings, health, money, guarantee, safety, discovery, easy, new, results.
How to segment your audience/Selecting your target market
- Identify what is your target market.
- Identify your customers.
- Where are they located?
- Where do they hang out?
- What do they do?
- What their day looks like?
- What do they crave?
- What are they afraid of?
- What are they angry about?
- What are they angry at?
- What are their frustrations?
- What do they desire?
- What is the main dominant emotion they feel?
- What do they ideally want from you?
- How can you make their life better?
Important tips
- 64/4 Rule — The majority of success comes from your top 4% efforts.
- A good product or service is a customer retention tool.
- Focus on your niche. Dominate it. Move on to other areas.
- Identify, How can you make their life better?
- Competitors are not the biggest problem, fight against inertia is.
- Quality and great service are expectations, they are just part of good business practice.
- Remember if you confuse them you lose them.
- Purchasing is done by emotions and justified with logic after.
- People buy from people, not from corporations.
- People always crave something, new, something different, something entertaining. When you give it to them, you get their attention.
- Five motivators of human behavior
- Fear
- Love
- Greed
- Guilt
- Pride
12. Always choose clarity over cleverness.
13. Give them free stuff like guide books, recipe books or any other valuable asset.
14. People generally take you at you own appraisal unless proven otherwise.
15. The easiest sale you can make is to existing satisfied customer.
16. Your job is to make it easy for customers to buy from you.
17. Sell them what they want, give them what they need.
18. One of the simplest way to find out what your customers want is simply by asking them.
19. Create theater around your customer and service. Your customer don’t want to be serviced, they want to be entertained.
20. Become their trusted advisor rather than a salesperson.
21. The goal of technology is to reduce friction.
22. Help them buy from you.
23. Fire your bad customers. Send them to your competitors.
24. A brand is the personality of the business.
25. Best form of brand building is selling.
26. Brand equity is the goodwill you build up that compels people to do business with you.
27. The goal is to build tribe of raving fans.