Last week at the Greater North Fulton Chamber of Commerce Small Business Awards luncheon, Chanda Bell and Christa Pitts from The Lumistella Company were the keynote speakers. Their company's original creation was The Elf on the Shelf®.
During their talk, Chanda and Christa called for a show of hands on those familiar with their products, and virtually the entire room raised a hand. As they went on to describe, things didn't start out so warm and rosy.
When they first created Elf on the Shelf, these founders faced rejection from every major publishing house they approached. Publishers told them that the story was too niche or not marketable. Some were outright insulting.
These tenacious founders didn't give up. Instead, they self-published the original product in 2005 and sold it themselves. They leveraged personal connections and solicited independent retailers. They created word of mouth. Over time, Elf on the Shelf grew into a viral sensation, now beloved by millions of families worldwide.
What's the lesson if you're a B2B service provider?
It's not just that it doesn't matter who rejects you. It's also that your economics as a service provider make your journey much easier than that of Chanda and Christa.
They have a much lower price point, and as a product-based company, their cost of goods sold relative to revenue is much higher than a typical services business. Consequently, Chanda and Christa had to sell a lot of product to succeed.
If you're a solo or small firm professional services provider, your average sale price is much higher, and you don't have much cost of goods sold. Your economics allows for much fewer sales. You don't have to go viral.
Your economics give you the freedom to:
Be choosy about the clients you take on.
Move on from clients who turn out not to be a great fit.
Remain calm in the assurance that a niche group of clients is not only okay but is the basis for a great business.
Image Credit: Jasmeen Hemmings on Unsplash
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Are you frustrated by your pricing? Need help articulating your value? Do you need a better way to identify and close your best-fit clients? Do you want to restore the joy you used to have for your business? I may be able to help you.
I’m John Ray, a business consultant and coach, author, and podcaster. I advise solopreneurs and small professional services firms on their two most frustrating problems: pricing and business development. I’m passionate about how changes in mindset, positioning, and pricing change the trajectory of a business and the lifestyle choices of a business owner. My clients are professionals who are selling their expertise, such as consultants, coaches, attorneys, CPAs, accountants and bookkeepers, marketing professionals, and other professional services practitioners. Click here to learn more or contact me directly.
I’m the author of the national bestseller, The Generosity Mindset: A Journey to Business Success by Raising Your Confidence, Value, and Prices. The book covers topics like value and adopting a mindset of value, pricing your services more effectively, proposals, and essential elements of growing your business. The book is available at all major physical and online book retailers.
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