Retail business will focus on convenient locations to bring in customers. The same company may have 3-5 stores with in a five-mile radius. A service company may only have one location servicing hundreds of customers, over 40 miles.

Since we all have competitors, what causes you to stand out? If you are relying on low pricing, you need to make it up in volume, or you will win the race for going out of business first.

Do you rely on superior quality, charging a premium price to fewer customers? That strategy can even work in a down economy, if you have built an outstanding reputation and have few competitors. But even the wealthy may stop buying to avoid flaunting during a tight economy. When I had my Electrical service company, many of my customers were multi-millionaires. Price was not an issue. They were paying for my dependability, quality of work and courtesy. But during a recession, some of my customers stopped remodeling. I even had a customer that required the materials delivered at night and my truck was parked down the street. Old money has rules of propriety, which are strictly followed.

If you cannot describe your customer in detail, you need to refine your research. Because if you know who will purchase your goods and services at premium rates you will not need to deal with customers who take up so much of your time and produce little profit.

Many times the huge customer is too demanding and pays too slow for most of us. If you decide to deal with these giants, you will need to raise your prices to cover all of the headaches. Many businesses have found that a small customer is actually more profitable.

So, keep reviewing your marketing plan until your find your niche

Ken bear Cole

A Second Look Business Consulting LLC

Chasing pennies is a game that I sometimes play with my Granddaughter. We will be in a safe place with a concrete surface. I will toss a penny and she will run after it and return with a big smile. She is proud of herself for finding the penny. She gets excited when I shake the pennies in my hand. She is ready to run after the jingling, almost worthless coins. Are you doing the same?

If you find that you are, STOP! Don’t spend any more money in advertising, printing, website or anything else. You must first decide who will pay a premium price for your products or services. An old saying goes, “It’s not what you make, it is only what you keep that counts.” Ask yourself a few questions:

• Why would anyone want to purchase my products or services?

• What makes me different from my competition?

• Where do my profitable customers hang out?  You need to get to know them.

• What would cause them to want to know me?

• Is my marketing plan designed to entice these customers?

Answer these questions and then make appropriate changes to your business. Then be prepared, you might start seeing profits.

Ken Bear Cole

A Second Look Business Consulting LLC