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1. Sell selectively
This will help you define your market niche. What will you offer that is distinctly different (better, less expensive, faster, higher quality, etc.) from your competitors? Why should anyone buy from you? What market share can you seek?
2. Know your niche
What type of individuals and/or businesses do you plan to serve? Start by answering in general terms (professionals, service companies, manufacturing, retail, etc.), then try to be very specific. Spell out demographics first—age, sex, income, etc. Then you can move on to psychographics, or lifestyle considerations. When you clearly define the population you hope to sell to, you’ll have a better view of what products and services they require. Where do they spend their free time? What activities are they involved in? How do they spend their disposable income?
3. Create your pitch
Define what “your product/service attributes” mean so that your product or service comes alive for your prospective clients. Make it so important that they will no longer want to live or work without it. Appeal to their individual needs.
4. Price for profits.
The goal of your business is to make a profit. Many start-up businesses fail to make a profit as early as projected because they didn’t price properly. Know what your competition charges, and determine if you should be less than, equal to or higher priced. Be sure for product pricing that you have covered your materials, labor and overhead costs. Service, like consulting, can be difficult to pinpoint. Some services will fall into an hourly rate structure; others are better-suited to a service fee. Pricing decisions will have to take into account what your market will bear.