Thank you for joining me for day three of our 35 day journey! We are going to expand on the previous post exploring rule #2 “Strive to create 10 times to 100 times in value for any price you charge….” In my mortgage banking business I made a conscious decision to focus on the middle to high end market based on my desire to serve a client base that would recognize and be willing to pay for a premium service.
The mortgage banking business is highly competitive and at the lower end of the market it is viewed as a commodity with borrowers searching for the lowest interest rate and fees and mortgage lenders serving those markets too eager to cut their margins to win the transaction. I have always viewed this approach as short sighted and I had no interest in competing based on lowest price.
Maverick Entrepreneur Rule #3:
“You must charge a premium price so you have a large margin to provide an extraordinary value & experience .”
There are two fundamental problems competing as the low cost leader in your market, first if price is your value proposition you offer no advantage to the marketplace once someone beats your price, in addition, you are not creating equity in your brand and therefore no client loyalty. When you position yourself as the low cost leader you teach your clients that price is the most important consideration, when you compete on a high value with a premium service you raise the expectations of your clients and price no longer becomes the primary consideration.
To tie rule 2 and rule 3 together you must maintain enough margin in your price to be able to deliver the extraordinary experience or high value while rewarding yourself and sustaining your business. If you charge too small a price and try to deliver a premium service you most likely will not be profitable.
As illustrated with the Ritz Carlton and Nordstrom examples in my prior post, I didn’t mind paying a premium for the service I experienced and more importantly I expected it and sought them out.
Action plan for Maverick Entrepreneur Rule #3:
1. If you do not own a copy of Yanik Silver’s “Maverick Business Insider” introduction package click here: Yanik Silver’s Give Away to obtain all of the details and claim your free package including all of the contents pictured in this post: Introduction of The BIG Idea
2. Make a commitment to offering a premium level service experience and decide how you provide extraordinary service and value in your business.
3. Access your brand strategy and make sure that it provides a clear set of values and creates the correct expectation for your prospects and clients.
4. Identify and overcome any resistance you have to charging a premium price, you have to believe you are worth it and your service and value must warrant it.
5. Seek out opportunities to experience premium services from establish leaders in the luxury market and other high value service providers.
6. After you have watched the video, listened to the audios, read the book and other material in your package share this information with others in your circle and network of influence. As stated, you want to surround yourself with like minded people and introduce others to the knowledge you gain on your journey.
As you begin to act on the principles contained in this material you will find that the people, resources and opportunities required to manifest your dreams will begin to attract to you. The relationships, clients and partners needed to live a BIG life will emerge and you will be in a position to establish new and larger goals. The Maverick Business Insider philosophy is for anyone with a desire to make more money, have more fun and give more back.
In my next post: We will explore why you MUST charge a premium price!
(c) Copyright 2008 James A. Holmes. All Rights Reserved.
James Holmes, Global Team Builder, Coach and Trainer, combining online and offline techniques to help you grow your business. To request a free 30 minute consultation contact James by phone at 303-523-9503 or email at james@AskJamesHolmes.com
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