Last updated on April 18th, 2019. Posted in Business Fundamentals.
Why aren't your customers buying from you? This is a huge frustration for many business owners, especially new ones. Well, in order to understand why customers aren't buying, we have to understand what our customers value. And in addition to that, we can throw a little bit of icing on the cake too if we like. All this is what today's video is all about!
Okay, so let's start with this question...
What gives something -- a product, a service, a collectible -- value?
It isn't rarity.
A one-of-a kind needlepoint picture of the cast from the TV show T.J Hooker, or a degree in interpretive medieval poetry, or your aunt's paintings of sad kittens...while rare...have low to zero market value.
They may have personal or sentimental value, but that's not the kind of value we're talking about here. Here, we're talking about resale, or market, value.
So why do these things not have market value?
Well, it's self-evident that something that has resale value has a buyer -- someone who's interested in purchasing it. Very simply, this is all about demand.
The aforementioned items simply aren't in demand.
Nobody's interested in buying them. Therefore, they have zero market value.
In order for something to be of value, including the products, services, or solutions you sell, there has to be demand for it. Otherwise, nobody's interested. Otherwise you'll be shouting to an empty room. Otherwise, you'll spin your wheels trying to jam a square peg into a round hole.
So before embarking on trying to sell anything to anyone, make sure there's demand first. Make sure people want what you're offering. In other words, more than one person has to want it -- that's what gives something market value.
So, something that's scarce, that isn't in demand, has no market value.
And as for rarity, that just helps. That's like icing on the cake. If something's in demand, great. But if it's in demand AND it's rare? That just drives the value up higher and higher.
There's only so much beachfront property available. There's only one Matisse, there are only so many seats available, only so much time left. That's rarity. And if it's rarity for something that's in demand, then you've got yourself a winner!
Here are some additional links and resources mentioned in today's tutorial. Enjoy!
Hope you enjoyed. See ya next time!