PROFIT LEADER COACHING SERVICES
The Profit Leader Philosophy. People following an industrial age approach to business often use a loss leader model. They offer a product or service at cost, or even below cost, to generate foot traffic. Once they get that foot traffic in the door, they then try to sell those people more expensive things. The key is to get a lot of foot traffic in the door and do a high volume of business in order to generate profits. The gig economy has made this model obsolete, and competing on price is a losing proposition. No matter how low you set your prices for whatever you’re offering, there is someone out there who can sell at a lower price. Unless you’re an Amazon or an Uber with investors that are willing to subsidize years of losses in the billions before turning a profit, it’s no longer possible to regularly generate profitable high volume foot traffic with loss leaders. So, if you can’t use price competition to generate foot traffic, what can you use? For the answer, we have to go back to those cliche buzz words “personal brand” and “unique value proposition” for guidance. Now that social media is becoming the dominant means of business development, people choose their service providers based on who those people are and the unique advantages they offer. In a weird way, social media has brought back a small-town mentality when people actually knew their butcher or mechanic by name and were loyal to those people. To generate foot traffic then, you don’t lead with the least valuable thing you offer, you lead with your most valuable service. Since this is the opposite of a loss leader approach, I call it a profit leader approach. Let people know who you are and what the unique benefits of working with you are. Instead of making money off of high volume foot traffic, make money by identifying those people who will pay a premium for what you have to offer and by building valuable, long-term relationships with those people. Yes, you will be aiming for a smaller number of customers, but those customers will be more loyal and will pay a premium to work with you.