Personal Development for Smart People Forums - View Single Post - Starting out a new business. Q on Marketing.

sunraybrett · 02-18-2007, 01:34 PM

Hi Fusebox, Good to see you are a fellow risk taker. I would just like to rewind you for a minute. You stated that the competition is $100/hr and you are looking at $89.

Firstly where do you what to place yourself in the market?
What is your competitive advantage?
What is your point of difference?

With these three answered you can then target your style of advertising and marketing. If you plan to compete on price then be prepaired to have your profit margin squeezed. Your competition will be in a position to join the price war if you start one. Unless you see a niche for a lower priced service and have backed this up with market research then this will just reduce your profit with small market share gain. Low price does not always mean good value. Value added is perceived better then budget in the marketplace.

You need to know your market and what the competion does wrong and how you can improve the service clients receive. Customer service is a key focus in most businesses. In highlighting this, your advertising will come across as more a 'user-friendly' service. Clear, professional, to the point, targeted advertising will stand out. A little more time invested at the start in market research, pays off in repeat customers in the future.

In a business venture of mine in the past we missed the point on what the customer wanted. We priced low to try and get market share, but the customers thought we were cheap. In a market survey we found what our customers really wanted was prompt service. We raised our prices 300% and guaranteed delivery which improved sales 1000%. Not to say your market is the same, just that what we think our customers want is not necessary a fact, but our opinion.

Good luck with your venture.

02-18-2007, 01:34 PM	#22 (permalink)
sunraybrett Junior Member Join Date: Jan 2007 Location: Melbourne, Australia Posts: 4	Marketing Ideas Hi Fusebox, Good to see you are a fellow risk taker. I would just like to rewind you for a minute. You stated that the competition is $100/hr and you are looking at $89. Firstly where do you what to place yourself in the market? What is your competitive advantage? What is your point of difference? With these three answered you can then target your style of advertising and marketing. If you plan to compete on price then be prepaired to have your profit margin squeezed. Your competition will be in a position to join the price war if you start one. Unless you see a niche for a lower priced service and have backed this up with market research then this will just reduce your profit with small market share gain. Low price does not always mean good value. Value added is perceived better then budget in the marketplace. You need to know your market and what the competion does wrong and how you can improve the service clients receive. Customer service is a key focus in most businesses. In highlighting this, your advertising will come across as more a 'user-friendly' service. Clear, professional, to the point, targeted advertising will stand out. A little more time invested at the start in market research, pays off in repeat customers in the future. In a business venture of mine in the past we missed the point on what the customer wanted. We priced low to try and get market share, but the customers thought we were cheap. In a market survey we found what our customers really wanted was prompt service. We raised our prices 300% and guaranteed delivery which improved sales 1000%. Not to say your market is the same, just that what we think our customers want is not necessary a fact, but our opinion. Good luck with your venture.