Wealth creation occurs when you produce a product or service that people want and need and are willing to pay for at a price that is in excess of your total cost of producing that product or service. The key to business success has always been the same, find a need and fill it. We all earn our livings by serving other people in some way. Your business goal is to find out what people really want and need, and then give it to them better and faster than anyone else.
Secrets of Market Leadership
Hundreds of companies have been studied to discover the secrets of market leadership. There are three secrets. The first one is Operational Excellence—the company has developed the ability to produce its products and services at a cost substantially lower than its competitors. The second is Customer Intimacy—the company develops a close relationship with its customers based on excellent knowledge of the customer's business. Thirdly, there is Technological Superiority—the company offers a product or service that is superior to that of its competitor.
There are several strategies that you can follow to create additional value for your customers and additional wealth for yourself. Improve your product or service in some way so that it is better than that of your competitors, at the same or at a lower price. Produce or deliver your product or service faster than your competitors. Produce your product or service cheaper than your competitors, maintaining or increasing your level of quality. Offer better follow-up and support services to go along with your product or service than your competitors. Make your product easier to acquire and more readily available than your competitors. Make your prices and terms more attractive and convenient than your competitors. Include additional products and services with your offerings, at the same price.
Your reputation in the marketplace determines how much you can sell, and the prices you charge. The friendliness of your staff and the ease of doing business with you is a key part of your reputation. Your credibility with your customers, the degree to which they see you as trustworthy and dependable is a key value to your customers. Selling to an individual customer requires an impeccable reputation and a focus on the improvement your product or service makes in their lives. What does your product achieve for your customer? What does your product help your customer to avoid? What does your product help your customer to preserve? How does your product help your customer to get better results in his life?