Finding Your Niche and Pricing for It
Why Niche and Pricing
Sales have been down everywhere. We are slowly emerging from a pandemic. We have a new president. Why are we talking about finding your niche and pricing for it?
Because pricing is getting back to basics. What we are really talking about is your position within the market you serve and how you are competing for your portion of the sales out there. Are you leaking profit by overpricing and losing the sale? Or could you be underpricing and leaving profit on the negotiating table. Both of these cases are common errors which can rob you of business-sustaining profit.
Covid19 has impacted all markets for better or worse. That means you should be looking to make sure your profit strategy is in line with reality.
Any time we face a crisis in our life, like a pandemic, we have to take note of the danger we face. But crisis also means opportunity. If a competitor quits the market you are in, then there are now potential clients that could need your service. Before going right back to what you were doing before the pandemic, take the time to consider new trends and competitors in your market, a potentially different audience, and the opportunity to start anew with better profits than before.
- How to successfully emerge from the pandemic and grow or re-grow your company to reach the company’s profit goals.
- How to better define your company’s market position or niche and understand the pandemic’s impact.
- Pricing better to get back to making business-sustaining
Two things and some questions you should consider soon or get a professional opinion
- Go back and re-study the market you compete in and answer these questions:
- Have any competitors gone under?
- Is their target audience the same as yours?
- Is this an opportunity to increase market share?
- Is there a glut or a shortage of the product or service I offer?
- Assess what the market is telling us and ask:
- Are you positioned currently in the market where you want to be to make the most profit?
- Should you consider making a strategic move to compete at a lower end of your market or go after the buyers on the higher end?
- What are long term, strategic changes to make now that will make us better in the future?
A Word About Pricing
Pricing has is the most common problem I run into with new clients. It is common for companies to try to achieve as high a quality as the top company in their particular market. And they will spend the money to build that quality and service. Yet on pricing they feel they have to compete with the lowest priced producer in their vertical. That is a losing strategy. If you have built a high quality, high service business, then you have to market and sell with quality as your calling card. And you have to learn to price higher for it and still gain the business.
Companies making business-sustaining profit have found their niche and they are priced properly for their market.
CARES Program blog contributed by:
Randy Moon, owner of RMoon Consulting, brings over 34 years of management experience to your company and your vision. In each project he takes on, he works with owners and managers, teaching or implementing the best ways to change, improve, build and grow their companies; increase sales, create stability, and manage their employees to greater success.