Dien Rice
February 9, 2018, 06:24 PM
I was meeting a couple weeks ago with a top marketer... I won't mention his name, but he's a multi-millionaire many times over...
It was in relation to a project I'm doing (I can't spill too many beans here, unfortunately, as my partner would kill me)...
But this marketer tends to target the "high end" market. That is, his products are on the expensive side, and he likes it that way...
One thing he told me, is he said, he has a principle... "I don't like selling to broke people."
Is that a good attitude to have? Many don't like it...
But, what it boils down to, is that, the better your profit margin is, the more likely your business will succeed and thrive. And higher priced products generally have better profit margins.
When you have razor-thin profit margins, the more likely it is your business will go under...
This marketer prices his products and services high - and tries to make sure the high price is justified (so people will buy them)...
Yeah, it's true that some businesses survive and thrive on thin margins... WalMart, maybe Amazon... But these are businesses where the owner(s) have poured in millions of dollars to make that work. It's difficult to make such businesses work, unless you can do things at scale - which requires money...
Anyway, it's not the only way to do business, but... I just thought I'd share this, for what it's worth...
Best wishes,
Dien
It was in relation to a project I'm doing (I can't spill too many beans here, unfortunately, as my partner would kill me)...
But this marketer tends to target the "high end" market. That is, his products are on the expensive side, and he likes it that way...
One thing he told me, is he said, he has a principle... "I don't like selling to broke people."
Is that a good attitude to have? Many don't like it...
But, what it boils down to, is that, the better your profit margin is, the more likely your business will succeed and thrive. And higher priced products generally have better profit margins.
When you have razor-thin profit margins, the more likely it is your business will go under...
This marketer prices his products and services high - and tries to make sure the high price is justified (so people will buy them)...
Yeah, it's true that some businesses survive and thrive on thin margins... WalMart, maybe Amazon... But these are businesses where the owner(s) have poured in millions of dollars to make that work. It's difficult to make such businesses work, unless you can do things at scale - which requires money...
Anyway, it's not the only way to do business, but... I just thought I'd share this, for what it's worth...
Best wishes,
Dien
