Second Crucial Step to Becoming Premium
The Premium Series
Last week we talked about CLARITY - be so clear that your customer understands who you are and what you offer.
Clarity can be the root cause, but we don’t always see it. If you think you have a closing or selling problem, or aren’t attracting the right talent, look into how clear you are about your business.
We’re building in this series, so let’s dive into the second part of being able to charge premium = YOUR VALUE.
When you are in a service or coaching business it can be challenging to market yourself and show your value. The problem is MOST businesses do NOT show their value to their customers, but they think they do. They don’t understand what you offer and your customers DEFINITELY don’t understand.
Only 50 percent of businesses make it past the first five years, and one-third make it past the 10-year mark. Although there are plenty of reasons why businesses fail, lack of differentiation is one that tops the list.
Think about Starbucks - they’ve spent MILLIONS to establish their brand. When you enter a Starbucks, you know what to expect - service, product, price and environment. You understand their value and they are globally recognized as a brand that conveys it. The message is CLEAR.
But what if we shift this to the entrepreneurial, small business world? (ex: business coaches, fitness trainers, chiropractors etc.). It can be more challenging to market yourself and customers may not understand what makes you different from the competition.
If you leave it open to interpretation, customers can judge your business negatively. Ex: They may see you as cheaper because of what vehicle you drove, what you wore or something you inadvertently said. They already expect discounted prices at the value they’ve interpreted.
54% of marketers do nothing to optimize their value propositions. Understanding yours is an easy way to be more effective than roughly half of your competitors.
How much time, energy and resources have you spent to define your value?
Starbucks devotes a lot of advertising dollars to showcase their brand to be premium.
Let’s take this deeper into what happens if you’re not clear and don’t differentiate?
You attract clients, but can’t close
Your clients turn to your competitors
You try to discount your offering
You get STUCK in low bid, low price work
You lose motivation and become burned out
You don’t see an exit strategy for your business
You have no resources to grow - you’ve spent everything on all the other problems
In a study it was shown that just over 3/4 of customers say it’s easier than ever to take their business elsewhere.
Clients will stay and are willing to pay more if you’re clear about your VALUE.
A client of mine, Steve, had a tough time defining his value. He is a contractor and I asked him what he provided for his clients and he told me the standard things like: quality, customer service, good employees, and being involved in the community.
He was not standing out from the competition! He didn’t know his unique value and the roadmap to becoming a premium service provider. His clients were then assuming, because he hasn’t evaluated it for himself.
Once we defined his offering, he was able to charge premium prices that clients were willing to pay. After coaching him, we realized he was the least disruptive contractor in the area. Now, that’s a big value for customers! He started marketing this as a point of difference and it attracted more customers and grew his business.
Understand what you offer that differentiates you from the competition, and your clients will be happy to pay higher prices as your business grows and succeeds.
Once you’re clear, customers won’t assume what you offer...they will KNOW.
In any industry, when customers know what you offer it’s going to greatly benefit you.
Imagine you can afford to pay a President, VP, GM or manager and take a vacation because you have the extra money and time. You can donate to a local charity that is in need. Maybe you’re the person who buys the lay-away items for people during Christmas. It gets fun, quick!
When you’re premium, it always means more money for your bottom line. Premium changes the way you show up and creates ease in your business. You’re not in survival and coming from a scarcity mentality.
Think about what you can do if you learn to be premium. DREAM...because this can be you! We just need to talk about a few things to get you on your way.
My goal is to help you to create abundance in your business and life. It starts with being PREMIUM.
Let’s connect and discuss this for your business. I’d love to hear about your goals and specific challenges. I will tell you honestly if I can help...that’s always my promise.
Stay tuned for the next step in our Premium Series so you can radically shift your business.
Talk soon!
Seth
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Check out www.startthemo.com for more about what we do.
Seth Lewis is a serial entrepreneur and Founder of Momentum U (www.momentum-u.com). Seth and the team help business owners understand the parts of momentum so they can leverage it in their business. His approach is the perfect blend of mindset work combined with a strategy in an 8-week online course that includes LIVE coaching. Seth holds an Executive MBA from Villanova University, is a mentor to MBA students, board member, and author to the upcoming book (Dec 2020) Momentum: The Investment You’ve Been Missing.
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