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THIS WEEK
Business Trends - What Amazon & ITunes are Telling You About How Much Your Business is Really Worth (... try 99 cents)
ALSO IN THIS EDITION
Business Trends - What Amazon & ITunes Are Telling You About How Much Your Business is Really Worth (... try 99 cents)
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There's a new trend happening. It is early days yet, but it is definitely a trend ... and it started with music.
When I was growing up, I remember having to save my pocket money for weeks in order to visit my local record store and buy the latest vinyl record. Then came the advent of CDs, where a $30 CD was the norm in Australia. Next the internet flexed its muscles, people started to pirate music in a big way, and the market moved to compete with the pirates. ITunes was born, and with it, the $1.19 song and the $15 full record.
Computer software companies are also feeling the trend. Pirated software and scamming the school and education versions of software, used to be the bane of the existence of Microsoft, so they now sell low-cost Home and Business versions of their packages to tempt people to "do the right thing" rather than pirate it. Other big software companies like Adobe are yet to follow their lead (and the net is still full of people talking about how to get around the high price-point of Adobe products).
Books and information are part of the wave. Paperbacks that used to be $30 in stores, now can be bought online for a fraction of the cost. And the biggest book war is being waged with books delivered digitally through ebook readers such as Kindles. There the standard rate for fiction is between 99c and $9.99 (with most at the cheaper end of the spectrum). Non-fiction tends to be sitting around the $9.99 mark, with only top authors getting above $10 per book.
And as a result, big traditional book retailers are hitting the wall and shutting up shop – they simply can't compete. And author's payments are more miniscule than they were previously. Many best-selling Amazon fiction authors now are getting less than $1000 in their launch month per book, (makes you wonder why they do it).
But it isn't just books and music. Traditional retailers are finding people are pumping them for information, or trying on or testing products in store, before then buying the product cheaper on-line, leaving the traditional retailer out of the loop.
Even public speakers on the circuit are struggling. Top speakers who used to be able to easily claim $15 000 per speech are finding their bookings drying up, and even the budget end of the speakers-market are finding paid gigs thin on the ground. Many traditional conferences are struggling to make numbers and even trade-shows have been hit hard.
What are the new trends in buying?
So what exactly is this trend? Well from my perception, there are few things happening.
1. Buyers do more research
People use the internet to research purchases (and information creators) before they buy. People also supplement their research through traditional businesses and will choose the lower price if there are no other factors from which to sway their decision to buy with the traditional business.
2. Buyers are aware of costs to deliver
Linked to the first point, people see that the cost to deliver products via the internet is dropping, so they are not willing to pay as much for the same product. If there is an online purchase or product delivery option, people are taking it, if it means they save money.
3. If things are overpriced - they look for free options
If there is a free option available (legal or otherwise), people are taking that option, if the paid option is perceived to be excessively priced.
4. Buyers want substance
People are growing tired of fluff and padding, with no real content. They are tired of books with massive white margins and even larger font, that cost an arm and a leg. They are sick of people who give them motivation and inspiration, but miss the tangible and practical how to actually do it. They are sick of overpriced show-ponies and one-trick wonders ... people want depth!
5. Buyers want to DIY
People want the tools and advice to do it themselves. They don't want someone telling them how to do it and then wandering off while they work out the practicalities of implementation in their business, they want support while they implement things in their business.
How should you respond?
So how should businesses respond to these trends? I always look at internet marketers to see what they are doing. They may not be able to articulate why they are doing what they do, they just test and measure to get results, and adjust their course on the basis of the results. These guys are on the cutting edge of what works, and it pays to watch what they do.
They were the first on the moving the free line trend approximately 5 years ago, where they gave away for free things they previously charged for, and as a result got brilliant financial results from the strategy.
In the past two years they have taken the shift even further, away from a straight this is what you have to do towards this is what you have to do, and specifically this is how you do step one, two, three etc.
They are now reflecting the shift away from selling information, towards selling detailed systems and processes. They are seeing that people want to do it themselves – provided they have help to call on as they need it.
My Business Impact Predictions
So, what are my predictions for business impacts in the next 5 years?
If your business simply sells this is what to do, whether that is in books, speaking, e-books or consulting, you are going to find your markets drying up and your price-points being driven down.
And if you are still fighting the, "I shouldn't have to give anything away for free" fight, you will soon be out of business.
If you want to stay ahead of the game, you need to sell what to do and how to do it.
The right system always has value. People want to know, "Exactly how do I do what you are telling me should be done in my business or service?".
Give them processes, support and templates AS WELL AS strategies and concepts. Give your strategies and concepts away for free, and sell the systems and implementation. Give away the what, sell the how.
You will also need to improve how you articulate the value that you add to a business, as well as increasing your proof of credibility. People are looking for more evidence they can trust a business, and want to know specifically how you can help solve their problems.
And if you don't adapt to these trends ... you will be faced with peddling 99c products on Amazon and wondering where your business went.
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| HR Tip of the Week: Upskilling Your Team for the Future |
 Every business manager needs to keep one eye on the skills that will be needed for the future, and work out strategies to help either develop them for the team or bring in people with the missing skills.
So what are some of the skills needed for the future that I have outlined in the lead article?
- Articulation of value - the ability to put into words the value that a business gives to customers.
- Support skills - warm, patient and timely client support skills.
- Systems approach - ability to work out simple systems that can be replicated in different workplaces.
- Internet skills - ability to "think net". This includes core SEO, social media and online client engagement skills.
- Responsiveness - ability to see an issue and respond in a timely way.
 As we are heading into Easter, having a few days break gives you time to reflect and think about how to refresh and grow your business.
Our Small Business Marketing Ideas is packed full of non-fattening ideas and strategies to help you grow your business.
These range from simple "tweaks" through to more advanced strategies. There's enough in there to keep you going with more than one enhancement each week for a year.
And to make it even better, until Easter Sunday you can pick up a copy for a super special 25% off.
All you need to do is key in the coupon code easter and you will only be charged $29.95 + GST.
Get your Easter reading sorted with Small Business Marketing Ideas.
As I mentioned in our lead article, giving away great information for free will be a core business strategy in the future. In this post I share exactly what I put into my highest performing Squidoo page (in what order) - which is why it generates a stack of highly targeted traffic back to my website.
exuberantly yours
Ingrid
Heart Harmony
Legal stuff: This newsletter is intended as only a general guideline for Australian businesses. You should seek specific advice for your situation rather than relying only on this newsletter
Earnings disclaimer. Some of the content may include advertorial information, which means I may receive financial compensation for the products I recommend. But - unless I know and trust the product, I will not recommend it.
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