Formula to Win Business Competition
Maybe some of you are wondering; How come my products and the services that I offer don't sell well? And sadly, when compared to competitors' products, their quality is actually still below yours. But, how come they can sell better than my superior product.
In fact, you are the formula behind this highly-selling product. If we know the formula, our chances of being able to make a product that sells better than our competitors are also greater. What is the Formula to Win Business Competition? Let's find the answer in this article...
This is the sales formula; S = (V - P) C. S is the Sales value you get and it depends on V, which is Value. V is the Value that customers perceive or get, when they buy your product or use your services. P is Price. P is the price they have to pay to get that value. C is Communication. C is how you communicate that value to your customers.
So, how do you make this formula? The point is that you have to make sure that the total S value is higher than competitors, so that ultimately customers prefer your product or service over competitors' products. we'll talk about it right away. If you want to make sure that the customer ultimately chooses your products and services, you have no competitors. This means that the score you must have in this formula is higher than the competitor's score.
Suppose, you have a product or service that is really good and the value that the customer will get, for example; the value is 200. And you decide to sell it for 150. That is, the customer only sacrifices 150 to get a value of 200. The amount of value that the customer gets is greater and that means it's good.
Next, you can't just sit still. You have to communicate that value to your customers or at least to your potential customers. And let's say the effort you get is 2. Which is the score of the effort value you put out. So, if you put this into the formula,
S = (200 -150)*2
S = 50 x 2
S = 100
Next, we take a peek at your competitors. For example; your competitor's selling price is also the same as 150. But the quality of the product, the service is not inferior to yours. So, the value obtained by the customer is only 180 below the value they can get if they buy your product or service. However, they are very good at communication. He is smart in marketing, uses many channels and his copywriting is reliable, so his persistence is high. So, the effort they spend to convince their customers is twice as much as your effort.
If you only have 2, he has 4. So, what are the results?. And your customers will choose which service product? Is it to competitors or to you, even though their value is lower? Competitors have the difference between value and price is 30 (180-150) with C is 4. The result score is 30 x 4 = 120 and it is higher than your score. Because the C factor is high, in the end the reality is that the sales results are very good.
Simply put, when you already know this formula. the choice is that you have to be able to make sure that your V is as high as possible and your C is also as high as possible. Loh, why is V not asked to be as low as possible? That is not available solutions because the price that has been set may be a price that has been calculated with the cost of the Cost of Goods Sold. Later, if it is lowered again, it can cut your margin and that is not good for business.
Not too recommended to cut prices. If you don't mess with the price, then you can tweak the V with the C. Make your value high and also communicate as well as possible so that the C is high. How do you increase V while the product is just that. Don't forget that there are two types of value; functional values and emotional values.
The most concrete example is Coffee. We can buy Sumatran coffee in Medan City for one cup for only $0.3. However, if Starbucks sells it even though the coffee is the same (Sumatra coffee), the price becomes $3. How could that be! and people want to buy it for $3. Sumatran coffee has a certain quality and a certain taste, that's what is meant by Functional Value.
Smart Starbucks, he doesn't only use his functional values, he also uses his emotional values. Starting from the packaging, positioning the coffee, reinforcing the story behind it, all of which will create a certain emotional effect, so that when people drink Starbucks branded Sumatran coffee, it tastes different than drinking Sumatran coffee at a shop on the roadside of Medan City, even though the coffee beans are actually the same.
Well, that's your way to increase value. Big brands like Apple. He's very good at this emotional value. It is true! functionally, Apple is superior to others, such as better quality. But, if we look at the fantastic price, why do people still want to buy even indents? Because, he not only plays in the functional but also in the emotional. People like to identify themselves with the Apple brand, it feels different, you have a certain pride. It's as if we belong to an elite group in society, that's emotional.
Don't be stuck just thinking that if you want to win the competition you have to lower the price, you don't have to. Now, you know how to increase value, not only functionally but also emotionally. That's the first. For the second, communicate optimally to your potential customers. If you play both, God willing, your chances of getting a total score (S) will be higher than competitors and eventually customers will prefer your product or service even when your price is more expensive than theirs. Hopefully useful and please share this article with your friends. Thanks.
Reference: https://youtu.be/oacS3LiS2y4
Post a Comment for "Formula to Win Business Competition"