Position Your Product/Service for Maximum Profitability: Lean Start Up Hong Kong


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Every business has a different unique selling proposition to stay fit amongst competitors, but is it a strong enough position to get you paid your target price? The mistake many businesses make is under pricing their product and service in order to gain customer testimonials, satisfaction and experience. In some cases, business are over pricing and not getting enough customers. So how do you create a pricing model that is both flexible and makes sense for the demand of the market?

In this lean start up session, we will look at:

1) Creating a pricing model that is not only competitive, but also flexible enough for negotiations
2) Avoiding the Price Wars…undercutting your price to win customers
3) Positioning your service/product to focus more on value and building strong relationships for increased profitability

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Position Your Product/Service for Maximum Profitability: Lean Start Up Hong Kong

  1. 1. Position Your Product/Service for Maximum ProfitabilityLean Startup Series #3Image source: thevarguy.com
  2. 2. About Art Art Lee is a seasoned digital marketer with extensive experience in leading and managing technical projects across APAC and U.S. He has both extensive technology and business skills which are both required to effectively manage any digital marketing campaign and to ensure business objectives are met. The skills that are most valued by clients is his ability to listen and to create solutions.
  3. 3. Image source: brainzooming.com  Session #1 - Idea generation Coming up with your own ideas
  4. 4. Image source: surveyshack.com, whicheb5.com Session #2: Researching Your Target  Market Defining your ideal client
  5. 5.  Helping business owners (SMEs/Freelancers) to build their own businesses on a lean(er) budget  Educate business owners to make informed decisions (simple and effective)  Accommodate lowest common denominator - semi- seasoned business owners  Encourage audience participationImage: hymnindia.com
  6. 6. What are you worth? (market comparison) What motivates your ideal client? Position yourself for maximum profitabilityImage: marlijnenoordink.blogspot.hk  Where to start Defining your monetary potential
  7. 7. Your worth is based on….EconomyMarket demandsMarket sentimentMotivationsImage: allhiphop.com
  8. 8. Charge based on demand High Value In demandVery Useful Not Useful Selling Waste yourself of time shortImage source: pearanalytics.com Low Value
  9. 9. Price/Cost…a moving target Analyze Adjust Competitors For large & small Client Feedback To meet expectations Motivations To match motivationsImage source: movingtargetrecords.com
  10. 10. Example as digital marketer….Analyze AdjustCompanies (large and small) In-Line with competitors as a start Adjusted once portfolio growsFeedback (clients and prospects) Some had higher expectations Goal is to make them feel they got more than what they paid forMotivations Speed to market/to complete Added services Expert insight (strategies)
  11. 11. Group Exercise: Analyze Competitors Product Service Take one product, compare it to  Take one service, compare it competitors & feedback: to competitors & feedback:• How they are selling? Do the same….• How they are discounting? (volume, tax breaks, extras)• How successful/attractive are they?• How are they different than you? Image: absfitness.in
  12. 12. What motivates your ideal client?
  13. 13. Exercise: Motivations Products ServicesList characteristics that motivate List characteristics that motivatecustomer to do business with customer to do business withyou. you. Price  Level of service Level of service  Added value Discounts  Quality of work Quality  ReferencesImage source: empowernetwork.com
  14. 14. Image source: womensally.com  Build negotiation structure Position yourself for maximum profitability
  15. 15. Where do you play?Highest margin- Max dollar for bill rate/least maxamount of work value/satisfaction Lowest Too much work margin/worst for little money expectations
  16. 16. Pricing Model Exercise: Service Competitors How You Compare Volume  Discounted/Low priced  Quick and painless  Certified Total Cost: Your Cost:
  17. 17. Pricing Model Exercise: Product Competitors How You Compare Volume discount  Speed to deliver  Quick and painless  Total Cost: Your Cost:
  18. 18. Website Example Competitors How You Compare Speed to Deliver (volume)  Takes a bit longer (quality) Price (10K)  Price 15K Quick and painless  Quick and painless Simple design, placeholder  Functionally efficient for content, some functions Approach that makes sense, lastNot happy for long…. longerTotal Cost: Your Cost:Image: webpresence.tv
  19. 19. Summary Be realistic with your pricing, mood changes when work is much more than your cost Client motivations are key to winning new clients Don’t out price yourself unless that is your goal Keep pricing flexible Image: freemarketingmadeeasy.com
  20. 20. Get Busy Doing or Get Busy LosingGood Luck!Come talk to me if you have any questions.