Going for quick short term cash can hurt your business in more ways than one. Instead, going the business overdelivery route will help you build a long-term, profitable business. Tune in to the Friday Podcast to find out more.
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Business Overdelivery and Profit Building
Value: Pay $5, get $5.
A lousy movie, is something you paid $10 for and gave you $9 of entertainment, or cardinal sin is ZERO entertainment = ie waste of time.
Overdelivery is when what you get, vastly exceeds what you paid…
Another real world example. Go for dinner at a nice restaurant, have a nice dinner, waiter gives you a slice of their signature triple fudge cake, or maybe a slice of freshly made key lime pie.
What’s happened here?
You spent $50 on dinner, waiter gave you two slices of cake, which costs $5 each and probably cost $2.50 to make(desserts have at least a 100% margin). What’s he done?
Taken $5 for the 2 slices of cake, and bought your satisfaction and potentially your loyalty.
Customer retention stats: at least 5-10 times more effort to get a new customer, than it takes to retain an existing customer.
Make sense to hold on to all your customers, doesn’t it?
World of Internet Marketing:
These days, about 40% of products out there give you value parity.
Pay $50, get $50 value.
Another 50% of products give you value destruction.
Pay $50, get $10 value.
So it doesn’t help to have a spectacular product launch, a number of big ones out there, my inside sources tell me some launches have >50% product refund rate.
So that $1 million product launch has $500k in product refunds. How cool is that?
Choose to be in the long term business game.
Market your product at $50, be sure to give $100 in value.
Word of mouth marketing goes hand-in-hand with your brand and reputation.
the big name JV launch partners and crazy giveaways (buy $500 product, get $10,000 in bonuses), a lot of times result in one time sale.
$10,000 in bonuses fail to deliver. Is it really worth $10,000?
Not many people are capable of giving away $10,000 worth of value.
Wouldn’t you prefer to build lifelong customers?
Someone who would choose to buy your product, buy something with your name on it every time it comes to a buying decision?
Trying to play outside the overdeliverability frame sends a clear signal that you’re only here to earn the quick buck.
Strive instead to build a business empire built on a solid foundation of credibility, reliability and innovation.