In this weeks episode, Fearless Business coach and host, Robin Waite, talks about everything to do with niching. From honing your target audience to making your price stand out from competitors Robin has you covered.
In this weeks episode, Fearless Business coach and host Robin Waite talks about everything to do with niching. From honing your target audience to making your price stand out from competitors, Robin has you covered.
The most common mistake Robin has noticed with his clients is that they aren’t niching enough despite claiming that they’ve niched wherever possible. Its small errors like these determine whether you can attract your dream client and increase profit within your business. To prevent this, Robin has outlined three areas to focus on when it comes to niching.
If you are familiar with the terms ‘client avatar’ or ‘target audience’, you are probably more than aware of a market niche. In essence, a market niche is basically who you are marketing your services towards.
When asked the common question of who their service is marketed towards and their niche, Robin’s clients typically answer “Small Medium Enterprises”. Robin believes that this is the first mistake. SME’s are not a niche demographic. There are more SME’s than there are large businesses. Out of 66 million registered companies in the UK, large companies amount to 40,000. So, no, SME is not a niche!
Most entrepreneurs are reluctant to specialise their market niche further because of FOMO (fear of missing out). They believe that if they primarily target one client, they’ll barely get anyone investing in their business. But the reality is far different; you need to stand out from the noise, especially now there are so many service-based businesses in the UK. Ultimately, create your dream client avatar and cater your marketing specifically towards that. You will increase the chances of attracting them to your business over ones that waste your time.
Product niching is Robin’s area of expertise. Throughout the years he’s spent as a business coach, he’s found that the most common mistake people make when niching their product is that they claim to be a “Jack of All Trades”. As a result, people offer too much and spread their services too thin.
To combat this, Robin recommends taking the Henry Ford approach:
“You can have any colour you want as long as it’s black” - Henry Ford, Founder, Ford.
In the early days of Ford, Henry limited the colour choice of his car models to only black cars. Why? Because the lack of colours allowed him to focus on churning out new and better models quicker than his competitors.
What most entrepreneurs need to take away from this is quality over quantity. Because Henry niched his colours to only black, he could spend more time on the things he was good at. With your products/services, Robin advises you to market yourself based on a select amount of skills. For example, if you are a Virtual Assistant, instead of simply marketing the typical jobs associated with a VA such as admin, social management etc. Instead, try figuring out a specialism. For example, you could be the VA who helps business coaches get onto podcasts. From doing this, not only are you nailing your market niche as mentioned, but you are also highlighting your product niche.
This simultaneously signifies that you are the expert in your field, as you have something that your competitors do not have. This will then allow you to start charging higher rates within your business as you come across as a specialist service.
So, now you’ve identified your product niche and specialised, you’ve got to promote it as a high-value service. This is achieved through the pricing strategy of your product.
A common practice amongst business owners is to base their prices on their competitors when it comes to pricing. Robin claims this is highly detrimental as firstly, it puts you within an oversaturated market, and secondly, it signifies that your product is the same quality as everyone else is.
Of course, being the cheapest has many perks, such as attracting more clients, which is excellent in theory. However, in reality, too many clients might end up costing you more as you’ll have to outsource to cover the capacity needed to provide your services effectively. So go for the higher price! Free up your schedule and attract clients that are more than invested within your product.
Most entrepreneurs are put off the idea of marketing themselves as the most expensive as they believe people won’t invest, but it’s been proven that people do. Take a look at the likes of Tesla. For example, they are arguably one of the most expensive car manufacturers; however, they’ve proved that their high price is a niche within itself. People invest in them because they know they are going to get the best of the best.
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