Business Management Tips – What is the Relative Value of Your Service?

After you figured out what is the issue you need to address with your business, the next question you might need to ask is how keen are your clients to take care of that particular issue? Answering this question can bring you closer to find an appropriate price for your service, to see if there will be any interest for your service or product and to target them less easier with marketing campaigns. With this question , basically you need to find the relative value of your product or service in contrast with the pain suffered by the client. In this context, pain means expense, complexity or inconvenience.

For instance, you may have invented another tool that can cut grass to the same length, regardless of little knocks and plunges most lawns have. You are thinking about selling this tool for $500. The problem is whether you will find people who are bothered enough by having a slightly uneven grass to pay $500 for your tool. While many people are irritated by the grass cut slightly uneven, but won’t pay $500 for such a tool.

However, there may be people for whom an evenly cut lawn is extremely important. After all, a pleasant garden is a source of pride, and there are competitions where all these little details count. Therefore for these people purchasing a $500 tool that will last 10 years and gives them a competitive edge may seem a very reasonable purchase.

However, if you need to target these people, you should find a particular campaign. Once you know who will pay $500 for your tool, you can go where they are and speak the language they speak and address their particular concerns.

There are businesses that invent a problem and then they solve it. For example, nobody ever complained because his VCR is not competent to record TV programs. However, after somebody invented how it can be done, it turned into a compulsory element in each VCR. But breakthroughs of this kind are rare, so you should not base your business on them.

If you manage to understand the measure of pain, you can achieve two things. Firstly, you can communicate in a way that shows clearly what the advantages of your offer are. Secondly, you will find it easier to distinguish the clients who are interested in your product or service, therefore you can target them easier with marketing campaigns.

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