Download: MP3 (Protected Content!)
A recent conversation in the Community chat inspired today’s episode. Someone mentioned that there were a lot of people who couldn’t afford a certain product in their market and they saw that as an opportunity for them to enter the market with something cheap to sell at scale.
But when you sell a cheap product, your margins aren’t going to be very good. That means for it to be sustainable, you have to mass produce. To mass produce, you need a ton of up-front capital!
So first, you need a lot of resources to sell cheap in a sustainable way, but second, you’re limiting your potential. Selling cheap affects your brand. When you have a cheap brand, you can’t very easily sell higher-ticket products. When you start with premium or high quality, you always have the option of coming down, but when you start cheap, it’s an uphill battle to do anything else.
How do you resist the temptation to price match with others in your market? How do you find the confidence to charge more? Primarily, it’s positioning and selectivity. If you want to charge more, you can’t target everyone. You must narrow your focus and come up with a different value proposition. That’s what we get into with today’s episode.
Oh, and we talk about the even higher end market you’re missing out on by making assumptions.
Already have access? Log in »