Three underlying principles of winning market share

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I’ve touched upon the idea of 10x Value Proposition in my earlier post, and as time has passed, my understanding of the Value Proposition and the Unique Selling Point concept has evolved.

There are two main problems that most companies are trying to solve: time and money.

Thus, the conventional wisdom goes like this: to win a piece of someone’s budget (and a substantial market share), you need to be either:

(1) 2-5 times faster than the competition, thus saving your clients time.

(2) 2-5 times cheaper than the competition, thus saving your clients money.

(3) 2-5 times better, but cost the same, thus saving both time and money.

10-20% is never enough. You have to be markedly superior to persuade a business to switch providers. However, the often-quoted 10x is also never achievable.

The interesting one here is Nr 3.

Being five times better and charging three times more won’t get you any clients.

Businesses set their annual budgets in advance, and financial directors won’t approve any substantial expenditure if it is not in the budget.

However, if a company already has a line in their budget for your service, but you are offering something 5x better at the same price, then you have a chance. Businesses never line up to buy anything, your sales and marketing teams have to win them, but with a 5x better product at the same price as your competitors- you have a good chance!

At Splento, we’ve taken this conventional wisdom to heart.

A comparable top quality competitor charges £150-£300 an hour. We cost £99 per hour. So we are comfortably saving our clients 2-3x.

The average time for our competitors to deliver edited photos is around seven days. We provide edited pictures on the day of the photoshoot. Again, within the “2-5 times faster” range.

Last, but not least – most of our competitors aren’t available when you need them (they are available when they have free time). With Splento you always have a top professional available on-demand when you require one. It turns the client-photographer relationship upside down. You no longer need to play to someone else’s tune – you, as a client, are the King, and photographer will come to you whenever and wherever you need, not the other way round. We don’t charge anything extra for this convenience. Furthermore, we edit all your photos as part of the package, not 20 per hour and then ask you to choose and pay for additional images – as our competitors do.

So let’s see if by ticking all three, we can get the lion’s share of the market faster.

 

by Roman Grigoriev