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Are You Selling to the Wrong People?

- July 25, 2012 | by April -

When I work with creative entrepreneurs, this is one of the worst scenarios to come across.

The worst scenario is someone trying to sell stuff that’s low quality when they know it isn’t any good–it gets even worse when they’re trying to sell it at high prices. But, selling to the wrong people is something that really stinks for the entrepreneur who is doing everything else right.

Let’s say you have this amazing product that you know will make people happier or make their lives easier or will save them time–it gives them some really good benefit–but, the people who it will benefit can’t afford to buy it or don’t think they can afford to buy it. That’s not a good place to be as an entrepreneur or as a customer.

Unfortunately, I’ve worked with many businesses in which this is their biggest problem. They aren’t selling to the right people or their target market can’t afford what they are selling. Watch today’s video to figure out if you’re selling to the wrong people and how to fix it if you are.

If you’re selling to a market that can’t afford your products or services, you’ve got a couple options.

You can sell to people who can afford your products or services or you can change your business model in order to serve the market you want to serve.

For instance, if you want to sell coaching to teens who are struggling with self-esteem issues and low confidence, you’ll probably find that they can’t afford one-on-one coaching at a price that gives you a profit. Instead, you could sell the coaching package to the teens’ parents, because they are the ones who could afford it. Or, you could come up with a more budget-friendly option such as group coaching or a membership package that includes monthly videos and downloadable worksheets.

When you’re selling to the wrong people, you have to make a change. You won’t reach success if you keep doing what you’re doing.

I’d love to hear your stories. Have you ever found yourself in this predicament? How did you change it? Share your advice and personal experiences in the comments below.

25 Comments · Filed Under: Creative Business Development

Comments

  1. Licia Dantas says

    July 25, 2012 at 8:58 am

    April, I love what you’ve covered today. I have been there and made all the wrong choices. I’ve lost great sales because of wrong positioning + not understanding who my people were/needed. I’ve learnt my lesson. I’m happy to say that today I’m more closer to my ideal customers than ever.
    BTW love the background, adorable shade of pink.

    Reply
    • April says

      July 25, 2012 at 4:50 pm

      So glad that you’re much closer to your ideal customers!

      Thanks. I thought this was a fun background for summer.

      Reply
  2. McKella says

    July 25, 2012 at 11:30 am

    I’m kind of in this predicament, but I’m just starting out, so I just don’t think I’ve found my market yet. I’m a fine artist, and I live in an area where people don’t really care about original art. I’m working on a portfolio to take up to some nearby areas where people are loaded and try getting into shops and galleries around there. I’m still figuring out how to promote my work online though.
    It’s a toughy. Lots of people like my art, but few will pay a few hundred dollars for a painting. I’m working on smaller pieces or pieces on the thin framed canvases in stead of the thicker ones so I can take costs down a little, but I think I’m better off appealing to a more affluent audience.

    Reply
    • April says

      July 25, 2012 at 4:52 pm

      I know a lot of artists who have struggled with this. I know some who started offering prints in order to appeal to people who didn’t spend as much on art. And, I know some that really focused on affluent people who truly value original art and are more than willing to pay top dollar for it.

      Reply
  3. Amanda says

    July 25, 2012 at 11:57 am

    Some very good points, thank you for the insights!

    Reply
    • April says

      July 25, 2012 at 4:53 pm

      You’re welcome Amanda! Glad you enjoyed this week’s video.

      Reply
  4. Catherine says

    July 25, 2012 at 12:11 pm

    Thank you for the reminder that we need to be thinking about our products, target market, and their budget!

    p.s. Love your blush!

    Reply
    • April says

      July 25, 2012 at 4:54 pm

      You’re so welcome Catherine!

      Thanks–my blush is made by NARS {my favorite makeup brand} and the shade is “orgasm.” Very naughty!

      Reply
  5. ashley says

    July 25, 2012 at 1:03 pm

    In 2011, I sold at as many markets and fairs as I could (i make letterpress printed stationery & cards, and who doesn’t need stationery, right?) By trying out a bunch of places, I was able to learn what *doesn’t* work for my biz. For instance- farmers markets? Pass. Not only is the wind a pain with displays, but there are too many browsers or people buying just one card, rather than a set.

    This year, I’m being more selective but still trying out new/new-to-me places on occasion, and if they aren’t beneficial -if my time would be better spent in the print shop-, I won’t go back. It’s not just a matter of sales though- at several events my sales have been low but I’ll get lots of inquiries about custom work, and some of those people actually place orders with me at a later date, which is AWESOME- those are my people!

    I’m also going to be reviewing your guides & courses with a fellow ‘creative entrepreneur’ soon (yay!) so we can both really work on our shop copy, finding our “ideal customers,” and also the Why/Story. (We were “bootcamp buddies” during Etsy’s 2011 Holiday Bootcamp and it’s great having a partner to keep you on track and bounce ideas off of.)

    Lots of work, but it’s for something that I love so it’s completely worth it.

    Hope you had a great birthday, April!

    Reply
    • April says

      July 25, 2012 at 4:58 pm

      It can be really good to try out places and see if it’s the right fit. Sometimes, what you think won’t work actually does. But, it’s so important to do what you’re doing and actually stop selling at the places that aren’t working for your business.

      It definitely helps to have someone to bounce ideas off of–I know it helps me!

      I did have a really wonderful birthday. Thank you!

      Reply
  6. Marian S says

    July 25, 2012 at 1:53 pm

    April, in this video the color of the background is SO flattering to you, and your outfit so very attractive and professional. Your topics are timely and informative, and I wish you continued success. Your husband is a really good videographer and an asset to your business (not to mention your life). You are a charming couple!

    Reply
    • April says

      July 25, 2012 at 4:59 pm

      Thank you Marian! My husband helps me so much with the video–I’m so grateful for him.

      Reply
  7. Laura says

    July 25, 2012 at 3:45 pm

    I just figured out that I need to scratch pretty much everything (not my products of course) and start all over.

    I don’t mind doing that because I want to learn how to do things the right way. I figure I’ve wasted so much time doing things wrong, that starting over will make me feel so much better by just doing one thing at a time and according to my budget.

    I love you April for talking straight from the hip, no b.s. and straight to the point.

    I was able to purchase one of your Birthday Specials (can’t believe that I actually scrounged up enough money for the Great price)

    I am so looking forward to start.

    April, I hope you had a wonderful birthday, but not quit sure if you’ve actually had it yet or it’s on the 27th.

    Any hoo…You are Great!

    Also, love the teamwork with you and your hubby. You two always put a smile on my face and I love to do that.

    hugs

    Reply
    • April says

      July 25, 2012 at 5:02 pm

      It’s good that you’ve figured this out and that you’re so positive about changing things. Some people get very stuck and feel as if they have to make something work, because they’ve put so much time into it.

      My birthday was July 19th. 🙂 I had an amazing birthday. I spent it with friends and family and did some shopping at Anthropologie–my favorite store.

      I’m so lucky to have a husband that enjoys helping me with my video! I don’t know what I’d do without him.

      I hope you enjoy the courses!

      Reply
  8. Wendy Christensen says

    July 25, 2012 at 6:10 pm

    And what’s wrong with being a Valley Girl? I’m actually a proto-Valley Girl — I was there before Valley Girls even existed. I even speak fluent proto-Val!

    Like, Purrrrrrs… wac

    Reply
  9. Shannon C says

    July 25, 2012 at 8:57 pm

    I completely understand what you are saying and yes you are so right but my biggest question is how will we know our ideal customer and what they are willing to spend?
    I make jewelry and because jewelry runs from super cheap dollar store stuff to gallery pieces priced at more than my car where do I fit in and how will I know what to charge?
    I know materials + profit + overhead = wholesale and wholesale x keystone = retail but that makes some of my pieces in the $100 range.
    How can I find the market that is willing to pay those prices for handmade jewelry like mine?
    Thanks for the great videos and the birthday specials, I took advantage of 2 of them 🙂

    Reply
  10. Gaby @ Tmuffin says

    July 25, 2012 at 11:14 pm

    I’m constantly struggling with this one… For a long time, I thought my target market was more of the crunchy community, but the crunchy community is usually DIY and doesn’t have a lot of money to spend. I’m still working on targeting the right people, but sometimes it’s hard to accept the facts. For example, my business offers classes and products that focus on birth, babywearing, play, and parenthood. I want to target the moms, but when it comes to buying activity kits for their kids or handmade toys, moms aren’t always the ones spending money, but the grandparents are. It’s hard for me to market to a grandparent, because I haven’t been there–it’s not as personal as marketing to moms. But to make my business succeed, I’ve begun to realize that I need to. I’ll keep you posted as to how it turns out!

    Reply
  11. Tabassum says

    July 26, 2012 at 8:29 am

    Happy belated birthday!

    This video came at the perfect time. I’ve reached a point where I cannot invest anymore in my dream business because it’s not bringing me sales. Just this past week, I’ve had to re-assess what is working and what isn’t. Am I reaching my market or am I in a room full of crickets? After a lot of deep thought and after watching your video, I’ve realized that I have to make my designs less couture (for now) and focus on making pieces that are still innovative and keep to my design ethics, but that sell. As you said, I would rather sell 20 tops at 50€, than not sell even one at 100€.

    I sooo wanted to purchase your b-day special package but I missed the deadline because I was doing a pop-up store event for my clothing line in Madrid-I had a good excuse :). I was selected to participate in a program to launch emerging fashion designers and it was in one of the most exclusive shopping districts in Spain, a.k.a. my target market. I’m not saying that my clothes are super high-end but at least I was pitching my products to people who actually appreciated original designs and knew the importance of eco-friendly, sweatshop-free clothes.

    That was the first time I could see firsthand what people thought about my products. I took the experience as a way to get myself out there, take notes on what needs to be tweaked and then come back with an improved strategy. At least I know I’m on the right track with my designs, my only problem now is to sell them.

    I’m really hitting a wall with this one: how to get into your market and convert window shoppers into paying customers and mostly doing it through a website/blog+ social media? Because doing pop-up store events, fairs, etc. cost money even if done on the cheap and it is even more costly if you’re not selling. I’m so frustrated right now, but still optimistic.

    Reply
  12. Renayle says

    July 26, 2012 at 10:46 am

    This was a great video to watch! I have been struggling with pricing my items. They’re not these detailed designs with precious stones, and yet if I was using a pricing formula for profit it puts them at a price that even I don’t think they should be worth. I am re-working the designs and want to put them up, but I am thinking that I need to lower the prices because while I can hit the target market, they shouldn’t be priced as much as they are. I hope if I give that a try it will help get me sales.

    Reply
  13. Sage says

    July 26, 2012 at 6:12 pm

    Awesome advice. I’m just starting to think about pricing and this is a reminder for me to really look at who my peeps are and what they can afford. Thanks for providing examples from your own business.

    Reply
  14. Christine says

    July 27, 2012 at 10:58 pm

    Hi, just found your website, LOVe it! Thanks for helping me increase my business knowledge! I’m going to go look around your site some more, now…!

    Reply
  15. Christine says

    July 28, 2012 at 9:08 am

    Actually, after thinking about this, I’d have to say that I just go on tinkering with my business, when I offer something that doesn’t move. But I tend to keep it up there on my store pages, unless having it for sale would make me lose money! I’m still in the see-what-works phases!

    Reply
  16. Kristal says

    August 3, 2012 at 10:02 am

    Hello April
    I found your website through Heartmade blog

    I am a stationary designer and just recently decided to change my target market because I was selling to the wrong people. I sold under my value and was dissatisfied with the result from all my hard work. In the past I put more money into craft shows than I made. After looking at the financials. I took a step back from my original business plan and gave my shop a make over from head to toe. I still have a long way to go as I have just started out but I am really glad to have realized my target market and got down to the specifics to succeed.
    Thanks for sharing !

    Reply

Trackbacks

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