February 1, 2023

Creating Value In Your Target Market

People don’t buy stuff that costs more than it’s worth to them.

In other words, nobody wants to spend ten bucks to solve a ten-cent problem.

Here’s the thing...

If people in your target market believe that your offering is a solution to their problem but they still aren’t buying, the problem could be that your price is higher than the value to the buyer.

What can you do about this?

Two things:

Marketing—Increase the perceived value of your solution in the mind of your ideal buyers
Innovation—Come up with a novel way to solve their problem that is much cheaper for both parties

An aside...

This probably deserves its own post, but I should point out that the total cost to the buyer can include things besides just your fee, like:

Time Cost
Switching Cost
Opportunity Cost
Organizational Cost
Sunk Cost

(If you’d like to know more about one or all of these, PLMK)

Yours,

—J

P.S. Check out the original article for related info.