Let me ask you a question: Have you ever had to fire a client? Now, I'm sure as business, you've been fired. It's happened to all of us, right? Heck, as an employee I've been fired. But have you ever had to fire a client? It's tough. Because we're in business to make money, right?
So, the customer's always right, right? You've constantly got to please them. But I've had to fire clients because they weren't a good fit, because I understand what I bring to the table.
People spend a lot of time and a lot of money trying to find clients. They prospect, they do marketing, they do sales, they do all kinds of different stuff. Networking, you name it, they're out on the hunt looking for new clients, because there's only three ways to make more money.
- Sell more of what you're selling to new people. Get more people to buy it.
- Get the same people that you're selling to, to buy more. In other words, consume more.
- Raise prices.
Now, the question is, if you want to make more money, you have to do one of those three things, right? So, let me let you in on a little secret: you get to choose your own customers. You may not believe it, but you do.
Who's Your Customer?
I've said this before, but if you think everybody is a customer, then nobody's your customer. If you don't have a clear vision as to who you're selling to and why, you're going to have a much harder time selling to who and why.
Let me kind of break it down this way… I want to let you in on a little secret: You get to choose your customers based on the values of what it is that you're selling.
I'm Not In The Crap Business
People who value their time are probably going to value your time more. Meaning, if they understand that their time is worth something, they're willing to pay you more, so that they can use their time on where they can make more, right?
Let me share my favorite example, which is my pooper scooper. Okay, let's say I charge $100 an hour. My pooper scooper comes and cleans up my yard for about $15 a week. Trust me, I've done it. I'm not really good at it. They are super good at it. They know how to walk a certain pattern and find where Buddy did his biz, and they pick it up, and they get in the truck faster than I even know that they're here. So, they're much more efficient at it.
But the bottom line, if I go do it, it's going to take me about a half-hour. So, at a minimum, if I could at least charge for that time, I could make $50. Yet, I could pay somebody $15 for what would take me a half-hour, and they do it better and faster. So, they make more money because they can do more yards faster than I could do the yard. So, if I didn't work for myself, I'd probably would go out and do it myself. But since I have my own business, and I understand that my time is worth $100 an hour, it totally makes sense to pay somebody else to come and do that, because I can make more money by working than I can by going out and picking up dog poop, right? And I respect them, and they get paid well. So, the bottom line is, I value my time, so people who value their time will probably value yours as well.
The other thing is that people who understand return on investment will probably understand your value to them as well. In other words, I understand return on investment. I hire people from all over the country to do work for me. They're called virtual assistants; they do great work, and they do it faster than I can, because they do it more often. So I understand that because they can do it faster, and they can do it better, that I can actually get more done, and I can work better for my clients. So, I understand the return on investment of hiring good people.
Now, I certainly could save a lot of money by going overseas, right? I know I can get website work done for $10 an hour in India, and I can get a virtual assistant in the Philippines for $5 an hour, but it comes at a cost, because it's cultural. Here's the difference: virtual assistants overseas may be cheaper, but they aim to please; if you ask them to do something and they don't know how to do it, they'll say they can do it. It might take them longer to get it done, and they may not do it as well, but they will get it done. So, you do get what you pay for.
So, back to the main point, people who understand return on investment will understand your value to them. Now, there's an old saying in business: “Faster, better, cheaper; pick two.” Beauty is in the eye of the beholder, and so is faster, better and cheaper.
Faster – Better – Cheaper
Let's examine those….
With faster, speed is the driving factor. I need it now, or time is money.
Think FedEx. You can pay more to have it delivered overnight, but if you absolutely need it, you're going to pay for, right? Sure you could send it via US mail, but there's no tracking. You have no idea when it's going to show up. So, if you need it now, FedEx is your best choice.
The next one is better. Quality is the driving factor.
If you want it to last or grow in value, then quality is your driving factor. Think of the difference between Tiffany's and Kay Jewelers. Now, they both sell diamonds, right? But one of them you probably trust more, because Tiffany's has a brand of quality. You may buy a diamond that's exactly the same from both companies, but chances are you're going to pay more at Tiffany's because of the added quality of service.
The last factor is cheaper. Price is the driving factor.
Think of it as something that's single use or disposable. That's all you care about, just get it, use it, and it's gone. Think Walmart versus Nordstrom's. At Walmart, you just want to get in, get out, and get the cheapest price, right? They're the cheap price leader. At Nordstrom's, you can return anything at any time. They are based on service. So, if you want cheap, think Walmart.
As I said, there are three ways to make money: sell more of the same to the same people, get the same people to buy more; sell more of it, and thirdly, raise prices.
So, you get to pick two. Your customers get to pick two.
What are you selling and what do your customers want? Faster and cheaper, means it's going to be lower quality. Think of gas station food or something like Walmart.
Faster and better is going to cost more. Think of getting high quality grocery delivery, all right? You're going to get it quick and it's high quality. Think of Whole Foods delivering great stuff to your door.
The last one is better and cheaper, but it's going to take longer. Think about growing your own food. Now, it's going to be super cheap because you can just order seeds and plant it in your backyard, but it's going to take you a season to get it.
So, faster, better, cheaper; pick two. If you can pick two things that you want to focus on, then you can be certainly clear about the customers that you're trying to pick. Do you want somebody who wants faster and cheaper? Do you want somebody who wants faster and better? Or do you want to work with people that want better and cheaper? The choice is yours, that's the little secret. You get to choose the customers, you get to choose the marketing messages on how you sell to those customers and you get to decide whether you want to work with them or not.
I would love to hear your thoughts on this. Comment below and share your thoughts, ideas or questions about showing the concepts presented. Have you had to overcome any of the presented concepts? What worked and what did not live up to expectations? Do you have any ideas or advice you could share?
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