Business Fundamentals: Understanding The Products and Services You Are Selling

Understanding The Products and Services You Are Selling

There are four key fundamentals that I recommend for every new business owner to understand: 

  1. Your Product/Service: Understand what you are really selling, not just the deliverables. 
  2. Your Target Market: Hint, it’s never ‘everyone’ 
  3. Where to market your business
  4. How to close the sale 

Today we are going to discuss number one: Your product and service.

If you are a business owner or thinking about becoming a business owner, the first step is to better understand what your product and service is. At first glance, this might sound like a silly question… “Sharon, I sell relationships coaching. I help people date!” That’s a great start, but understanding how to package and sell our services will help you take giant steps forward in building your business! 

Today, I am going to take you through a few steps to better understand your business! I am going to use a relationship coach as an example here, but it’s the same process for most service-based industries! 

#1. What are your primary, bread, and butter services?

In business, we often refer to the product or service that makes a majority of our income. If you are selling 1-on-1 coaching, group coaching, individual books, and digital courses around dating, chances are there is one service that makes a majority of your income. Over time this will likely change, but what already IS our bread and butter, or what we DESIRE to become our bread and butter should become a focus in most of your marketing and messaging. 

#2. Identify your upsell and downsell.

Not everyone needs an upsell and a downsell, but as a dating coach, or any other type of coach, you likely have multiple packages. A down-sell is a product or service that is a less expensive alternative to your main offering. An upsell is usually more expensive, and also includes more value, an alternative to your main offering. Again, you don’t need to have these but if you have multiple services, it’s important to identify which is which. 

Dating Coach Example Of Upsell/Downsells: The ‘bread and butter’ offering might be a 6-month coaching package for $3,000. A downsell might be a DIY course for $500 and an upsell might be a VIP 6-month package for $10,000 that includes matchmaking services. 

Website Designer Example of upselling and downselling: A ‘bread and butter’ offering might be a 10-page WordPress website for $5,000. A downsell might be a SquareSpace 5 page site with a template only for $2,000. An upsell could be a $20,000 custom build with custom web applications. 

#3. Be able to discuss your product or service with the CUSTOMER as the hero of the story.

It is very often to explain your services in very technical terms. You are in your business and the process or deliverables are the heroes in YOUR story, but for your customers, they want to see themselves as the hero. It’s human nature. Ask yourself the following questions: How did your customer feel and act before working with you? How did the customer work with you? How did the customer change while working with you? How is the customer after working with you? 

Once you have these questions written out, you can identify the difference between the deliverables( features) and the value (benefits) they are receiving. 

 An example of a dating coach features 6 months of coaching with 3 sessions per month. 1 hour each. Done via zoom. 

Example of dating coach benefits: Frustrated with online dating, clients with our coaches and learn how to write dating profiles that attract their ideal partner, the questions to ask potential dates before ever meeting, and how to date with confidence! 

#4. Make sure your bread and butter service is enough to support your lifestyle.

It’s incredibly common when starting a business to start with lower pricing. It’s incredibly important to make sure that your main offering is enough to support you. If you need $3,000 to live (a month) and you are selling a $500 item, you will need to sell 6 per month consistently. If you are selling a $5 item, it will take 600 items sold per month. There isn’t a right or wrong answer here, but if you are only selling $5 items, perhaps you can brainstorm a complimentary product or service with higher revenue-generating opportunities. 

Now that you have a better understanding of your product or service, you should continue the process by better understanding your Target Market!

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