I have a powerful question for you to ponder today.
It’s simply this: Where is the scarcity in your business… what do you provide, which is in short supply?
Scarcity creates value
When something is in short supply and there is a requirement for it, its value increases. For example, a bottle of water can cost pennies at your local town (where there are lots of other stores selling water.) That same bottle of water could cost you 2 or 3 times as much, when bought at a theatre (where there is no competition).
Most small business owners have 2 problems, because they fail to build scarcity into their products or services:
- People don’t talk about commonplace products or services. So, they attract few if any word-of-mouth referrals.
- People won’t pay a premium for commonplace products or services. This drives profits down. It also causes those who provide similar sounding products and services to compete on price – as price becomes the only way for potential customers to determine value.
I want you to avoid those problems!
Here’s a tip. It’s a simple exercise, to help you determine where your business fits into the scarcity scale. I want you to take some time out to think about your business, your competitors and your marketplace.
Then, I want you to focus on answering this question: ‘How simple would it be for my customers, to replace me with a competitor who provides a similar sounding service?’
Here are 3 posts, which will help you build unique value into your business. I hope you find them useful:
Latest posts by Jim Connolly (see all)
- How to stop your business from becoming a dinosaur - April 24, 2014
- 2 Ways to increase the lifetime value of your clients - April 23, 2014
- 4 Tips to attract more clients and customers from your website - April 21, 2014