By Stefania Aulicino
No one wants to pay for things in the new economy.
Free music, free blog content, free apps!
Why would any prudent consumer pay when they can get stuff for free?
Actually, free is the fastest way for sellers to earn premium prices in the new economy:
Free fuels a sustainable business model in the new economy.
In a world of fast changing everything, how is a consumer to know what they want, if they can’t educate themselves.
FREE is how consumers educate themselves about solutions to solve their problem
What is the first thing you do when you have a new purchase challenge – Google, surf the net, get a lay of the land—for free.
Once you educate yourself you are better equipped to make a decision. And that decision means big bucks to a seller who can deliver what you NEED to solve your pain.
After more decades than I care to admit, we decided it was time for a new bed. I had never purchased a mattress and box spring. After 20 minutes surfing the net I discovered all kinds of free information and learned there was no reason to spend more than $300 for a long lasting good bed. Armed with this information, based on a search of mattress stores in a 30 minute radius, we went off ready to make our purchase.
As an informed buyer, I knew what I wanted and what I was willing to pay. After visiting 3 stores where the sales person gave me their best prices for the mattress criteria I said I wanted, I got to the 4th store. There I met Anthony, a veteran on the bedding industry for 20 years. He complemented my knowledge of the issues for bed selection and we engaged in a rather expansive discussion about my purchase.
You guessed it. I walked out of his store as the proud purchaser of a bed for 3 times the price I knew was possible, confident I had the best deal possible. Free fueled my premium price. I recommend Anthony to friends looking for bedding. If that can happen with a mattress purchase, surely you can do that with any of your products and services!
There are 3 secrets of how to get from FREE to PREMIUM prices as the new business:
- Give
- Listen
- Be Unique
1. Give free information
HOW?
Post free resources on your website;
Ask open ended questions so prospects can frame their own demand to better educate themselves;
Blog and educate your marketplace.
2. Listen to what educated consumers say they want.
WHY?
Innovation must be driven by consumer PAIN. Your awareness of their pain is the gift an educated consumer gives the innovative company.
Never confuse the consumer requests with innovation. Only YOU , as the expert in your industry can deliver the real solution to a consumer’s need because consumers can’t know what is possible (Before it ever existed, did anyone need a Walkman / Kendal/ I phone/ Google?).
3. Be unique, confident to charge big bucks.
WHAT?
Do what you LOVE for those who value most what you do best.
No company wins a sustainable market position as the lowest cost provider. That’s just an award passed on from one cash-burning company to another. Why race to the bottom as Montgomery Ward was chased by Sears; Sears was chased by K-Mart; K-Mart is doing battle with Walmart and Target???
Instead, be unique; be the expert. Customers will stick with you and refer you. That business model predictably leads to a client annuity, supports premium prices and yields sustainable market leadership which is defensible. Think of the raving fans of Apple, Whole Foods, Angus Beef, BMW.
There is no reason to be afraid of the creeping proliferation of “Free” in the new economy.
Use Free to identify market needs so you can deliver unique solutions.
Do what you do uniquely well and charge a premium price.
Premium prices evidence you have attracted the best customers for you; they value most what you do best.
Stefania Aulicino, president of CapitalLinkUSA ensures business owns get cash to keep control of a bigger, more profitable company, faster, safer than they ever thought possible- in any economy. Let us help you become a magnet for non equity and equity sources to fuel your growth. Please explore our tools, solutions and consulting options tailored for different growth stages and different budgets: www.CashAndControl.com