The 2 Most Critical Success Pillars: Nail These or Nothing Else Matters

As a small business owner, you’re bombarded with advice on what it takes to succeed: build a great product, streamline operations, and set clear goals. However, without mastering two critical pillars, none of these efforts will bear fruit. These pillars are pricing and marketing.

The Importance of Pricing and Marketing

Your business can have an exceptional product or service, but if you don't price it right or market it effectively, you won't achieve the success you deserve. Here’s why:

Pricing: Setting the right price ensures that you cover costs, make a profit, and reflect your value.
Marketing: Effective marketing communicates your value to the right audience, attracting clients willing to pay your prices.

Common Marketing Pitfalls

People will tell you that to get clients you need to create a website, advertise on Google, post on social media, attend networking events, host contests, create content, create marketing materials, host lunch and learns, cold call and many more tasks that will keep your wheels spinning and the idea is that if you do enough things, then you will get the clients.

New entrepreneurs are often SHOCKED by how much time they’re spending marketing their business with very few calls and sales to show for their efforts.

Here’s why this doesn’t work: all of this marketing misses a crucial step and a clear strategy.

When my clients first come to me, I often hear them say that they're doing "all of the things" but the phone isn't ringing and they can’t figure out what they’re doing wrong.

When this happens it’s because of one of three things:

What You're Saying: Are you clearly articulating your value and the benefits of your product or service?
How You're Saying It: Have you tailored your message to resonate with your target audience’s desires and needs?
Who You're Saying It To: Have you identified your target audience (who values and can afford your offering) and directed your message through channels that will reach them?

Crafting an Effective Marketing Plan

Let's start with what you're saying - a successful marketing strategy starts with understanding your target client. For example, if you’re a personal trainer focusing on women over 40, emphasize results like weight loss and increased energy while highlighting personalized plans tailored to their specific needs. This clarity helps potential clients see the tangible benefits of working with you.

Next, refine **how you’re saying it**. Focus on the results your clients want—such as losing a certain amount of weight in a specific timeframe—and explain how your comprehensive approach ensures lasting success.

Lastly, ensure you're reaching the right people. If your services are premium, target clients who can afford and appreciate the value you offer, perhaps through partnerships with luxury brands or hosting events at high-end venues.

Overcoming Client Barriers

Identify and eliminate any roadblocks that might deter potential clients. For instance, if clients find your pricing a barrier, ensure they understand the value they’re getting. Make it easy for clients to find and understand information about your services. Look at successful businesses like Uber and Home Depot, which addressed customer pain points innovatively, enhancing their appeal and usability.

Pricing for Profit

Pricing isn’t just about covering costs; it’s about reflecting your value and market position. Start with a market analysis to understand where you fit in and where you want to position yourself. Calculate all associated costs—labor, materials, overheads—and determine your desired profit margin.

A simple pricing formula is: Costs + Profit Margin = Sell Price. Review your pricing to ensure it aligns with your value and market position. Adjust as necessary to ensure profitability.

For example, if you're a hairstylist, a small increase per client can significantly boost your monthly income without a drastic change in client volume. For consultants, a higher rate might mean fewer clients but the same or higher income, reducing workload while maintaining revenue.

The Goldilocks Pricing Strategy

Offer tiered pricing to appeal to a broader range of clients:

Budget Option: For price-sensitive clients.
Premium Option: For clients seeking the best quality and willing to pay for it.
Mid-Range Option: For most clients, offering the best value.

This approach ensures you capture different segments of the market, maximizing your appeal and revenue.

Mastering the pillars of pricing and marketing is essential for small business success. By strategically focusing on what you say, how you say it, and who you say it to, and ensuring your pricing reflects your value and covers your costs, you can build a thriving business.

We cover these 2 critical success pillars (and 10 more) in our Real Women, Real Business Mastery Program - learn more here.

For an in-depth discussion and actionable insights, tune into the latest episode of The Real Women Real Business podcast, "Avoiding Marketing and Pricing Pitfalls: What Business Owners Get Wrong and How to Fix It".

Want to give your business a boost? Increase your clients, revenue, and profits in 30 days with just 5 minutes a day - check it out.