More money less time

I wanted to take the time to talk about the importance of specialization. On the surface this seems like a very straight forward concept; in the hospital the Neurosurgeon gets paid more per procedure than does the general practitioner. However, when it comes to your business this somewhat simple concept often gets blurred the minute a customer walks in the door with an open cheque book.

I have a question for you, when was the last time you said to a potential customer you were not the best fit for them? Does this happen for you daily? Does it happen weekly? If you answered no to this question and you have a mature business I would wager you are not specialized enough and are selling yourself short in the marketplace.

Simple math will tell you it is easier to have 2 customers who pay you $5000 each as apposed to 5 customers who pay you $2000 each. I know some of you are saying well why can I not just take both the $2000 customers and the $5000 customer? The answer is because while you are dealing with the $2000 customer it is one less $5000 customer you can take care of. The law of abundance states you must let go of smaller customers to allow your business room to handle the larger ones. To learn more about the law of abundance I would recommend you check out Randy Gage’s work on the subject. http://www.randygage.com/products/prosperityseries.html
So, you want to take on bigger customers but you are just not quite sure how. The simplest way to do this is to double your prices. If you do nothing but this you will make more money per transaction and require fewer customers to remain profitable. I am sure by now I have lost some of you, who are thinking there is no way you can double your price. The reason for this is you do not have a big enough belief in yourself. If you do not believe this can be done take a look at Starbucks.

It was until Starbucks came along that any thought they would be willing to pay $5 for a cup of coffee. Why would anyone pay $5 for coffee when you can go to dozens of places and get it for $1.50? Starbucks realized they were not in the business of selling coffee; they were in the business of selling atmosphere. Though no one would pay $5 for coffee, they sure would pay $5 for atmosphere.

So how can you change the way people think about your business and make it more marketable? Change the atmosphere, change the culture, change the application and you may just be able to double your prices. Even if you lose 40% of your customers your business will still be more profitable and your work load will be greatly reduced.

Cheers,
Chuck