Would you travel across the country just to get a yearly physical?
Most likely, you wouldn’t.
However, what if you had a life-threatening heart disease, and the only doctor that could fix it was across the globe. Would you make that trip?
Surely, you would. Unless you want to die, for some reason…
What’s my point?
The point is, that nobody will travel or pay top dollar for your services if you’re a general practitioner. You have to specialize.
Take the first question. You wouldn’t travel across the country for a check-up because there are hundreds of doctors within 10 miles of your house that can do it just fine. You probably wouldn’t spend very much money to have a check-up either (besides a required co-pay of course).
But, in the second example, you don’t have a choice. You have to find, and travel to, the specialist that can save your life. And if he’s ten countries away, guess how far you’re gonna travel? Damn sure, you’re making that trip. Plus, you’re paying whatever fee he charges — doesn’t matter how high. Why? Because he’s a specialist.
These are the exact reasons why you need to be a specialist, and not a general practitioner.
I’m gonna assume that you understand basic economics. If you sell the same service that 100 other people offer in your area, what’s going to happen to the fee that you can charge? That’s right. It’s going to be as low as humanly possible, because the competition is going to drive it downward.
So, consider the opposite. What if you are the only person within 100 miles selling a particular good or service? What if you also have a target market of people that are in dire need of a solution, and you’re the only one with the fix? What happens then? You can charge damn near any price you want! As long as people are willing to pay it — and people are willing to pay big to solve their problems — then you set the price. There’s no competition to drive the cost down.
Again, this is why you need to specialize!
Let’s talk about a real-world example.
Lasik surgery started out being extremely exclusive. It costed tens of thousands of dollars and was only able to be done by a handful of doctors. Rich people that wanted their eyesight fixed were willing to pay top dollar to have a (relatively) minor problem fixed. But, as technology improved, and more doctors across the country gained the ability to provide the service, the price dropped. More competition, and more availability to the average man meant a lower price tag. Lasik is no longer a specialty.
I bet that you can figure out how to specialize in your market! Go deep with your customer avatar. Really narrow down who you want to work with, or sell to.
I heard a brilliant example today of a personal trainer that only works with entrepreneurs. Because he specialized, he cornered the market, and can set a high fee.
Here’s an idea:
Be the first person in your area that is a personal trainer for rich people’s pets. I don’t mean “be a dog walker”. I mean, combine fitness, dietary, and animal knowledge to be a pet personal trainer.
Point is… Specialize!
Until next time,