Would you be more inclined to have your brain operated on by a general medical practioner or someone who only does brain surgery?
For most people, that’s a pretty easy choice. Because when someone occupies a focused position, buyers with suitable needs are more inclined to gravitate towards you.
The decision becomes less about them needing someone to overcome a problem and more about wanting you to help them solve it.
Yes, I may need someone to operate on my brain, but I want that brain surgeon to do it! That is a fundamental distinction because if sellers can reach that point, they gain power in the sales conversation.
When a buyer’s mindset shifts from needing to wanting, the focus of the sales conversation shifts from price to value. It concentrates on the outcomes instead of the inputs.
The brain surgeon may charge me 10x more to operate on my head. But all I care about is the result. And if I believe that the result is going to be more beneficial to me, then cost becomes an afterthought. Yes, I still need to afford it, but if I can, I probably will because all I want is the best possible outcome.
That is why occupying a niche market position is so important. It gives you perceived expertise, and distances you from the generalists, making yourself a scarce resource which gives you far greater leverage in the pricing conversation.
So if you want to raise your prices, first look at your positioning, it may be the biggest thing that holding you back.