Smart business owners try to sell their products and services to a niche base of customers by conducting detailed market research with a focus on trying to understand the consumer behavior of the target audience that is interested in that niche. This addresses their needs, concerns, and desires.
Once the research that you conduct shows that consumers are interested in the niche product or service that you are planning to sell, then you can start to cater to them as much as possible by providing them with a range of items for sale at various price points.
When it comes to niches, you have to remember that some of the products will have a much broader appeal than others.
For example, there will be more customers interested in golf products for beginners, than customers looking for advanced information on golf because they are hoping to become a pro golfer.
Focusing on products for beginners will help you increase sales based on volume by offering a lower price point to a more significant number of customers. However, while there may be fewer advanced students looking for information and products on golf, the exclusive, high-level information that you can provide could command a much higher price than the eBooks that focus on a beginner’s level.
You can offer advanced students a course, a coaching program, a multimedia package, membership program, or other similar products that can command a much higher price point, especially if you are seen as an expert in your niche. This is because the more credentials you have, the more money you can charge for the products and services you are offering in your niche, within reason.
You have to keep your price point within reason because finding the right niche isn’t about finding the most profitable one, but also about what people are buying and how much they are actually willing to pay for their problems to be solved.
If the average price they are willing to pay is $29.95 and you want to enter the market with a $39 product, there will need to be an apparent reason why your product is worth more.
Your credentials, expertise, and the added extras that you can offer can undoubtedly help to remove some of the doubt that a customer might have and convince…