This article is for everybody else: those who choose not to compete on the basis of cost and low price. This article is for companies that can and should compete on the basis of performance, for which their customers willingly pay higher prices.
By competing on performance instead of price, you shift the battle to where your company’s strengths lie — in the ability to deliver unique benefits. So-called performance pricers are adept at three core activities: identifying where they can do a superior job of meeting customers’ needs and preferences; shaping their products and their business to dominate these segments; and managing cost and price in those areas to maximize profits.
Sometimes business is counter-intuitive, and markets can make no rational sense. It may take a rethinking of the position to make it more understandable. This great post at the Sloan Review website doesn't specifically target photographers... but the information is right on.
Take a few minutes to read the article. It is quite the eye opener.
First, I never think it is a good idea to lower prices, although I am also aware that it may be necessary in some situations. That is sometimes called being a realist, but it is also because I am a business person as well.
So while it may be necessary in some instances, as a tactic for more sales it falls flat... for the long run. And that is hopefully what the race is about... the long run. Short term gains do not necessarily transfer to long time success.
There is a list of questions there that really cut to the heart of any business... and the business of commercial photography especially.
1. Focusing on improving. Do you shoot everyday? Every week? And remember that every hour you are sitting in front of a bigscreen, one of your competition is working on a new image, making a new contact, putting final touches on their website.
2. Communication is so key. Staying in touch is the most important thing you can do with a new, and long time customer. Blogs, twitter, LinkedIn, FaceBook... and postcards, note cards and phone calls. Yeah... that texting thing you have in your hands... you can hear people through it. Very cool.
3. Finding the decision makers can be daunting... but terribly rewarding. WHO wants what you do? Where do they congregate/assemble/or work? Go there, make contacts... Identify markets and channels.
4. Most of us don't have big companies with people to check in with. But technology can make it easier to create groups online to help with the day-to-day and the extraordinary challenges we must meet. Find friends, engage them in discussion. (I belong to a very small group online and we discuss some pretty granular stuff - as well as some silly fun things as well. I have learned a lot from those Apogee guys.)
5. Pricing. How do you do it? Pull it from thin air or work hard to establish a point that makes sense for you and your client - and for the industry at large that you are part of? Leaving money on the table, or trying for the big score are two opposite points of a line called clueless. Be real. Be honest. Be aware of what the rates are. Be competitive, but not stupid. If you don't know what is going on in your demographics, find out. Easy? No, who said it had to be easy... missed that memo. But it can be done.
Paying attention to these items will put you in a tiny % of people doing this business. And it is a great place to be.
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