When I was fishing on the commercial boats years ago your personal value proposition was simple. Either you caught a lot of fish or you didn’t get invited back. What’s the use of having someone take up space on the commercial fishing boats and not catching fish to produce income for the skipper and boat owner.
Someone I know who has moved back to South Africa from the UK has been trying for some time to break into the local advertising industry. He is a graphic designer and after two years hasn’t come up with any meaningful work. He advertises services on a local community forum and only got two replies. One was from a salesperson for a stationery company and the other a printing company.
The challenge in areas like this where so many people have similar skills such as graphic design and Photo Shop is to find a niche market. The thing is it takes time to build up a local personal network where you are able to select customers that will first of all give you work and secondly provide you with profitable work.
So many colleges and universities are churning out people with the same or similar skills that in many areas the market is flooded. In this hard economy with slower business companies are often not starting something new and don’t need these skills. Continue reading “How to find the right target market”
After running her Thai restaurant in Johannesburg for the past seven years, a Filipino restaurant co-owner has decided to close down the restaurant. The main reason, and we are seeing it a lot these days, is that at the end of her lease the landlord has informed that it will increase.
The other day I saw a busker next to the parking pay station playing on his guitar and singing a popular song. In front of him was his black canvas guitar case and on top were several R2 coins. After I had paid for my parking, I gave the musician R2. As I did this I remembered what a musician had told me while she had busked her way through Ireland. I suggested to the musician that he place a R10 note or two on top of his guitar canvas carrier. He smiled and said he would try it out.
I don’t know whether the busker tried the approach or not but I do know that pricing products and services is based on perceptions. You see if you price too low people don’t place a high value on your product or service. If the busker put out R10 notes, passers-by would notice that the musician placed a high value on his service. Continue reading “A secret about pricing strategy learnt from a busker”