We’re Less Able to Help Businesses that Sell “low-net margin” Items to Repeat Customers

These “low-net margin” businesses include retail stores, restaurants, day skiing resorts, etc.  Because…

  • Repeat customers already have an opinion of the “feel” of the vendor.  They have shopped or visited there previously.  The business owners know they can directly influence customers via an existing relationship.
  • These customers can be easily convinced to return based on a price promotion.  Typically a small price promotion would cost them less per sale than the cost of our package.
  • Customers are less likely to research the vendor online as part of their purchase decision.  Our sale is easier when our prospects already know their prospective customers are researching them online before they buy.  This makes video important in two ways.  First, video gets them noticed by way of higher search engine rankings.  Second, when a prospective customer sees video that makes them like the person who is the face of that business, they are much more likely to select that company for the short list of who gets called on the phone.
  • The net profit on a single purchase/transaction is small for “low-net margin” companies.  We can much more easily cost justify our package when a company’s net profit per sale is more than the cost of our program.  That way, “if they earn just one more sale as a result of doing our program — it’s paid for itself!”  We feel good because we know we are providing value — since they’re going to earn more than one sale as a result of working with us.

We’re more able to help businesses that sell non-repeat “high-net margin” items

These businesses include:

  • Professional services companies (realtors, lawyers, high-end interior designers, painters).  If the service is a repeat service that is difficult to switch to/from, such as accountants, or membership organizations, that also works.
  • Product vendors where there is a big service component (general contractors, computer system installers, software developers)

However, for both of the “high-net margin” examples above, it’s best if the company sells directly to consumers (vs. purchasing managers at a corporation), since the consumer is going to have a bigger emotional investment in their buying decision.  This means the buyer will be influenced by feeling like they “know, like and trust” the seller.