Companies have learnt that they must try to sell those products, which people really want else they could suffer losses. As a result, many companies are making great efforts to adapt themselves to changing customer requirements.
When the dot com bubble burst a number of companies suffered heavy losses. Their problems were further compounded with the attack on the Twin Towers. In such a scenario when the very basis of people’s life was affected the market almost died out.
Everywhere the hunt was to look for products that could survive in such hard times. Consumers didn’t have much choice, first they were held back by a slow economy and then by the prospect of a nation on the brink of war and chaos. The mood was to save rather than spend on new and frivolous things. This caused a slump in consumer spending and had the sellers worried.
The need of the hour was to look for new products that could meet the customer requirements and survive the test of time.
The search for new changed products spread all over and centred on “Service”. People mostly agreed that they were now moving away from products, what they really wanted was service providers who would take care of all their requirements, allowing them to simply relax when someone else did all their tasks.
People wanted benefits but didn’t want to take any pains for it. They wanted a service, which would take care of the things that they were required to do themselves, earlier. This idea is gaining popularity among the higher income groups as opposed to the masses. These higher income consumers are ready to pay the price of enjoying such premium service. Think how many times you have bought a product simply because of the results that it offered. Wouldn’t it have been better if you could just buy the result rather than the product itself.
Of course such services that we are talking about are expensive. However, there are buyers for every kind of service. There are buyers who in view of the results that they want are ready to pay the price.
The condition is simply that if you are charging premium rates then your service should do what it promises and much more. Over a period of time you will gain popularity and trust of the people as a service provider who would deliver the best results. Soon you would have the right kind of customers contacting you for the services you are providing, irrespective of costs.
Your aim should be to attract more and more customers by word of mouth publicity. People should feel that though the service is expensive but it is worth every penny that they spend on it. If you keep doing good work soon you would have people referring to you as the best.
Placing your Business
It is very important for business to centre on their target customers. Many mistakenly feel that if they have inexpensive products then they have a better chance to succeed, as more and more people would be attracted to it. These businesses realise that in order to register a profit with low prices they would have to make large sales.
But, as they find out with time, this business plan does not necessarily spell success. On the other hand, if you give quality service, and charge a little more than an inexpensive service and your target customer is the affluent class then you have better chances of success. Here instead of generating large sales volume you can succeed with limited sales and customers, because you have charged a little higher price.
This theory is a little tough for the businesses to digest but they understand over time, that it works in many cases. Once they see the rewards for themselves, they no longer need to be prodded.
In fact, they are ready to reap the benefits of being in demand among the rich and famous while making great profits in the bargain.
This article was written by Craig Dawber of smarket-associates.com Need advice and guidance with your online business check out the resources found in this website.