‘Why Should I Buy From You?.
Are you the next Facebook , Google. Amazon, Linkedin, IKEA.?
Owning your own successful business is the holy grail of every budding business owner or entrepreneur.
Why then is it that so few businesses achieve this sort of success or any form of success and in fact most businesses statistically fail sooner or later?
Contrary to popular belief and reasons espoused for business failure such as under capitalistion, or poor management, is not why businesses fail in the most part. It’s not because they have poor systems or poor staff either – some of the many reasons given why businesses fail.
It’s far simpler than that, yet almost over-looked in the vast majority of cases.
Massive success or failure in business comes down to one critical factor…
And that is failure to answer one simple question…”WHY SHOULD I BUY FROM YOU?”.
– if your business fails in this one single area, nothing else you do over time will lift you to the lofty heights you aspire to be or stop you from ultimately failing.
Misunderstanding this very idea is why 99.9% of businesses fail or under perform .
Having a good product is not enough. Having a great product is not enough. It has to be unique or perceived to be highly unique and the only product to solve your customers problem built into your marketing message.
And this is where the 99.9 of businesses fail. They might have a good product, or even a great product but if it’s not unique and immediately demonstrated to solve your customers most pressing problem, or at a minimum to highlight its uniqueness in a way that is meaningful to your potential customer, ….you are on a downward trajectory.
Lets repeat that key point…solve your customers most pressing problem in a way that is meaningful to your potential customer.
This is where the real game of business is won or lost.
No one person is immune, no company either no matter how big is immune. If your product is not only good to great, but also not articulated or demonstrated to be unique in some way that is meaningful to the market, your outcome at best will be an average business (for a while), but over time’ average’ will become poor, and failure is on the horizon.
Your only immunity is to pay serious attention to this one aspect of your business and to begin asking yourself some better questions and discovering better answers.
These answers may never make you the next Facebook or Google, but it will certainly change your current fortunes or fate for the positive.
Sounds complicated ? – it’s not really when you look right in your pocket or purse.
Take a recent history lesson from Apple and the introduction of their iPod, iPhone and iPad as examples and compare their sales over a historical 2 year period which tells the story…
In the 2010 financial year, quarter ended December 26, 2009, Apples revenues were $15.68 billion and net quarterly profit were $3.38 billion. (These results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion in previous year comparison quarter – roughly a 50% growth year on year ).
In this 2009 quarter Apple
sold 3.36 million Macintosh® computers during the quarter
sold 8.7 million iPhones in the quarter,
sold 21 million iPods during the quarter, (representing an 8% percent unit decline from the year-ago quarter.)
Zero iPads ( not launched yet)
Less than 2 years later —Apple’s® revenues had grown to $28.27 billion and quarterly net profit of $6.62 billion – almost doubled !!
On this 2011 quarter Apple had
sold 4.89 million Macs during the quarter
sold 17.07 million iPhones in the quarter,
sold 6.62 million iPods, (a 27 percent unit decline from the year-ago quarter.)
sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter
These sales figures tell an outstanding story to highlight…Apples amazing understanding of the concept of “ Why should I buy from You?”.
In 2009 and 2010 Apple in anyone’s view was hugely successful with their 3 major products. The Mac, iPhone and IPod. Each of these products offered uniqueness and value. There was nothing quite like them on the market and they were offered and packaged in a way where people would camp outside the stores for days before the product was made available- just to be the first to get one.
However this does not last long . Steve Jobs knew this seemingly amazing advantage would not stay this way for long. Major competitors were on the way copying and trying their best to offer equal if not better value for lower prices, thereby eroding Apples one and only major advantage.
So why did Apple double its sales and profits during the following 2 year period where hundreds of other iPhone/smart phones appeared and sales of 2 of their 4 products( the Mac) only grew relatively modestly, and (the iPod) sales were actually in decline?
You see…Jobs understood intimately and answered this same question that 99.9% of other companies do not answer or rarely think about, but the best companies in the world OBESS ABOUT!
“ Why consumers buy from you as opposed to someone else”?
Customers have choices, and don’t just buy because it’s an Apple. They buy because Apple products make their life better, simpler, easier, more fun than everyone else. ( or whatever meaningful reason or uniqueness you need to come up with) .
Apple, a billion dollar company continues to innovate and offer product value and uniqueness . Even with their success they will face immediate sales decline and fortune reversal if they ignore for one minute this single fact.
So they set out every day to make their Macs even better, they launched a new better iPhones ( i4S) that contained even more product value and uniqueness -their competitors could not or did not,- they launched innovative new products (the iPad), they do things within their products that keep offering extreme value and uniqueness their competitors don’t see coming.
Apple and other companies who lead the way become obsessed with understanding this. It’s not about the capital you have, it’s not about the systems, it’s not about the management, all of this can be average and the company will still hugely succeed.
….Its all about the product uniqueness. This cannot be average!
If you get this right and understand that you get rich only when enough customers see, understand, want and buy your product rather than a competitors… and that product must provide them the value they need and want, in fair exchange for the parting of their hard earned money.
Still Sound obvious , right?
Then just take a look around you at all the average products or services out there or even better take a look at your, and ask yourself how does your product or service (in your industry compare) the Apple iPhone or iPad in theirs?
In the famous words of Dan Kennedy…”The world does not need another doctor , Lawyer or pizza shop” . The world is not waiting for you to become average then reward you richly. The world (or your market at least )is waiting for you to provide them a product or service that solves their problem and provides them much , much more.
Today companies and products at a minimum should anticipate customesr need , capture their imagination and delight them so their reaction to meeting you or experiencing your product is at minimum a delight and they say things like” what a good idea” or even better ‘ what a great idea, …I want one’
So be truthful…Are you unique, are you innovating, are you capturing the imagination and anticipating the needs of your customers? Tell me ….why I should by from you as opposed to your competitors?
I will bet you $1000 dollars ( and will pay this to you if I am wrong email me) that you are most likely not doing any of this and just persisting with being average. If you are truthful, with fresh eyes will most likely see your product as ‘average at best’.
This is your answer to becoming the next Facebook, Google, Apple or and one of the 0.01% of companies making massive profits -making their founders extremely rich, …. Yes even in todays world and economy.
Brian Sher is a successful entrepreneur, Author a, director of Australia’s leading school for Entrepreneurs. He has founded numerous start up companies in a diverse range of industries and written 5 Books, 2 of which have become international best sellers and translated into 17 languages, sold in 22 countries around the world. He has worked for and with the Rich and Famous and studied them and compared this with those who never reach lofty heights, and is now dedicated to identifying key elements of success in human achievement. http://www.thefortuneinstitute.com