This week we talked about how the “market rate” for your services is irrelevant — your specific qualities and capabilities will attract different prospects than others in your market. Those qualities impact the price you can charge more than the market does.
We also talked about we can identify ONE critical feature or benefit that your core client values the most. If you optimize your business around that core feature, you can command a higher price EVEN IF the rest of your business is only average.
Let’s look at how that plays out for a client of mine.
I had a client who started a web-design company. She made websites for all kinds of businesses. But she had two clients who were drug companies, and she figured out that they were willing to pay WAY more for websites than her other clients. Together we helped transition her company to focus totally on that niche.
There was one challenge: drug companies are complicated and have all kinds of regulatory rules. The compliance office would gut any innovative marketing ideas that were brought to them which can become a nightmare to a creative agency. It was too much risk!
Undaunted, my client decided she could become the compliance people’s best friend. She learned the rules better than they did and was willing to go in and fight for the good ideas her team developed and get them approved.
Three times the sales dollars with only a few more employees
As a result, she got the reputation of a web design firm that could get marketing approved through the compliance office. Now those drug company clients were willing to pay even more for her websites.
She went from selling websites for $15K – $30K to getting over $300K for a website. Her company grew from $115K per employee to over $325K per employee — which meant that she could raise her company sales by three times and only had to add about 5 people.
What do you do better than anyone? Who values that thing a lot? Who has an expensive problem for which that can be the solution?
Are you in Chicago? I’m hosting a “Bosses Day” party where you can meet some other business leaders and party like a boss. Want to come? visit http://www.anchoradvisors.com/bosses-day to RSVP.