What value do you deliver to your customers?
Sometimes, as business owners, we get so caught up in trying to get the day-to-day things done that we lose sight of this simple question. In order to justify high margins, you need to provide good value for your customers. If you don’t, you can bet someone else will. So as you review your business model, ask yourself these questions:
What problems/needs do our customers have?
Which of their problems/needs are we helping to solve? Which of their problems/needs are we not addressing?
What value do our competitors offer? How do they differ from us?
How could we be offering better value to our customers and differentiate ourselves from our competitors?
Now the trick is to find ways to increase the value you offer without reducing your margins. Can you solve customer problems that you aren’t currently dealing with? Can you revamp your systems so that you are providing better service? How about providing a customized solution for your customers – even if it is at a higher cost?
Offering good value is what will allow you to get margins that your business can thrive with and also keep customers happy. And that will help keep you happy too!