Have you ever asked yourself why customers should buy from you rather than from one of your competitors?
Do you offer them something different, of better value and of greater benefit than they can get elsewhere? Or are you like most SMEs – undifferentiated in the product or service and customer experience that you offer?
Small businesses need to go to greater lengths to create demand for their product to compete with more established brands that have already developed brand identity and presence amongst their target audience and thus created demand for their products or services.
If you don’t create real product value, you have a problem because the only way that you can differentiate yourself and attract customers is on price which is unlikely to be successful as there will always be someone prepared to offer lower prices than you.
Competing on price is dangerous because it often creates negative perceptions about the quality of the product, limits your pricing options and your ability to move up the value chain and introduce higher priced products, because you are perceived as a ‘value’ brand.
The benefits of offering real product value are considerable. Firstly, it gives you the flexibility to increase your prices and, as your overhead costs should not change, this should lead to higher profit margins and increased profits. This puts you in a stronger financial position so that you can concentrate on building the business rather than worrying about cash flow.
The business will have more money to spend on the resources which drive profits – marketing, staff and capital expenditure. It will also have the flexibility to trial different marketing approaches to see which work best, thus further reinforcing the brand message in people’s minds.
All of this helps build integrity and trust in the brand, which in turn leads to repeat business or continuity income. This allows you to make plans for the future with a degree of certainty that the core business is sound and profitable.
Taking a long term perspective, you now have a business with real value, giving you an exit strategy if you want one. Having worked hard and probably taken a modest salary while you built your brand, you can now sell and crystallise the value you have built up in your business, in the knowledge that you will only pay 10% tax on the wealth you have created because of entrepreneur’s relief on disposals of up to £10m.
Segna are experts in creating real product value, enabling you to develop your own brand identity and loyalty giving you the freedom to charge the prices your product deserves. This gives you protection against competitors, putting you in a stronger position to grow your business and increase your market share.
In short, if you want to grow your business so that it can reach its full potential, you must create a real product value and Segna can help you do this. For more information on how to create product value, contact us at email@example.com