Ever check out house prices when visiting a new city? I was walking down Union Street in Pacific Heights, two blocks from where we were renting a house in San Francisco and peeked at Sotheby's “homes for sale” window.
Most of the houses in the window were between $3 and $9 million. The house we were renting for a week sold for $3.5 million only eight months prior. I don't know where you live in the world, but that' s a lot when you come from Wellington, New Zealand.
The price you can sell a house for is largely determined by where you are and who you are selling to.
Let me explain.
There is a derelict house in Auckland selling for over a million. The buyers want the land. Location is everything because it determines who is buying. It has little to do with what is being sold. The same derelict house in South Auckland might be worth $100,000.
In any market, there are small pockets where people will pay exponentially more for what you offer.
Let's look at architecture.
Lead generation services for most firms are helpful. Extra leads for a small practice owner could increase their revenue from $10K to $20K per month. The impact of that extra revenue could be used to reduce some overhead, making the business owner more relaxed. But that is not life-changing …
But lead generation to a firm owner who employs 15 staff members and is four weeks from shutting the doors is a lot more valuable. She isn't just reducing her overdraft, she is saving her reputation and the incomes of 15 families she feels an obligation to. This architect is highly motivated.
The fee charger for a service that saves a business and keeps the wheels rolling is almost irrelevant.
In every market there are buyers and there are BUYERS.
The best niche clients …
- Have a specific PROBLEM they want to be solved or have an IRRATIONAL PASSION.
- Are highly MOTIVATED and looking for an urgent solution.
- Are already SPENDING to solve their problem or meet their passion.
- Are economically REACHABLE.
- You have some ADVANTAGE. You can get great results quickly.
- They have a LACK of perceived options.
- They are good to deal with.
The lesson: Where you fish for clients determines the prices you charge. Your ‘WHO' is the most important factor in marketing.